PRODUCTIVITY CHANGE IN SLOVENIAN AGRICULTURE DURING THE TRANSITION: A COMPARISON OF PRODUCTION BRANCHES
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In this paper we investigate how Total Factor Productivity (TFP) has developed in Slovenian agriculture during the ten years of the transition for the period 1994 - 2003, and which agricultural production specializations recorded the highest TFP growth. Empirical results indicate that TFP, on average, progressed only slightly, by 1.8 percent, over the ten-year period. The decomposition of the TFP change indicates that it is mostly due to technological progress of 2.7 percent. Technical efficiency has remained rather stable on average, suggesting that farmers were able to implement the new technologies on time. Crop farms have performed the best, with a TFP progress on average by 9.5 percent solely due to technological progress. As we used a common frontier, our result indicates that crop specialization is leading the country's agricultural technology.
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