No. 155. A QUANTITATIVE ANALYSIS OF AGRICULTURAL PRODUCTION IN GREECE, 2004-2016
P. Prodromidis, L. Zangelidis. 2020.
The paper looks into agricultural production at the subnational level in Greece, across four regions (Thessaly, north Greece, west Greece, the rest of Greece) from the EU’s 2003-04 CAP reform and 2004 enlargement by ten member-states to the end of the country’s long economic recession in 2016. It relies on annual observations running from 2004 to 2016, supplied by the EU Commission, and plots the evolution of output, of labor, of capital, of the land-area used, of energy costs, of the respective average productivities, and of the output to energy costs ratio. In addition, it econometrically estimates the impact of the said inputs on output, and the magnitude of multifactor productivity (i.e., of entrepreneurship, technology and of the impact of the factors not considered in the regression) in a translog production function framework. Alternative specifications are considered and all regressors are rendered uncorrelated to each other so as to deal with heteroscedasticity. The results suggest that labor and the cost of energy are the main explanatory factors. However, their impact along with the size of multifactor productivity vary across space. This implies that there is room for spatially differentiated interventions.