Technical Efficiency of Agriculture in the EU and Ukraine: A Stochastic Frontier Analysis Based on Factor Income

Journal title RIVISTA DI STUDI SULLA SOSTENIBILITA'
Author/s Bohdan Kyshakevych, Olga Melnyk, Yaroslav Kotyk , Yaroslav Lapchuk, Ivan Vornochak
Publishing Year 2025 Issue 2025/2
Language English Pages 20 P. 231-250 File size 0 KB
DOI 10.3280/riss2025oa20053
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<p>This paper evaluates the technical efficiency of agricultural sectors in EU and Ukraine using the Stochastic Frontier Analysis methodology. The analysis is based on factor income as the dependent variable and includes labor input, fixed capital consumption, utilized agricultural area, and intermediate consumption as key inputs. The findings reveal that EU countries on average operate under conditions of nearly constant returns to scale, while Ukraine exhibits increasing returns to scale but low efficiency due to underinvestment. The technical efficiency scores highlight significant disparities, with Western European countries outperforming Eastern counterparts. The results offer important policy implications for enhancing agricultural productivity and guiding investment strategies.</p>

Keywords: stochastic frontier analysis;technical efficiency;agricultural sector;factor income;European Union

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Bohdan Kyshakevych, Olga Melnyk, Yaroslav Kotyk , Yaroslav Lapchuk, Ivan Vornochak, Technical Efficiency of Agriculture in the EU and Ukraine: A Stochastic Frontier Analysis Based on Factor Income in "RIVISTA DI STUDI SULLA SOSTENIBILITA'" 2/2025, pp 231-250, DOI: 10.3280/riss2025oa20053