Annals of the Polish Association of Agricultural and Agribusiness Economists (Oct 2019)
CONCENTRATION OF PRODUCTION FACTORS AND SUPPORT AND THEIR PRODUCTIVITY IN EU FARMS
Abstract
The aim of the study was to assess the level of concentration of production factors and support in classes of farms distinguished by economic size. The Gini coefficient was used to assess the level of concentration. Moreover, using the Pearson correlation coefficient, the strength of the relationship between the concentration of production and support factors and their productivity was assessed. The research objects were commercial farms from EU countries. The research shows that the level of concentration of all production and support factors on EU farms is increasing, although this conclusion does not apply to all countries. In countries where the concentration of capital and labor is higher, productivity is usually higher. In turn, a higher concentration of agricultural area and support is usually accompanied by lower productivity. The article draws attention to the limited possibilities for applying statistical tests when using FADN data. The FADN database is a sample of farms obtained as a result of stratified drawing, with layers being countries. If the subject of study are countries, one cannot speak of a sample but of the entire population. Formulating statistical hypotheses regarding the population of countries (or the situation of farms in these countries) is pointless in such a case.
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