Management Theory and Studies for Rural Business and Infrastructure Development, Volume 35, Number 1

Partial factor productivity in Lithuanian family farms: the multiplier data envelopment analysis approach

Tomas Baležentis



The two measures of productivity prevail in the economic researches, namely total factor productivity and partial productivity (single factor productivity). This paper aimed at analysing the partial factor productivity in the Lithuanian family farms and identifying the associated policy implications. Specifically, the partial productivities of labour, land, intermediate consumption, and assets were considered. The multiplier data envelopment analysis (DEA) model was employed for the analysis. The research covered the period of 2004–2009 and relied on the data from 200 family farms. The aggregate inputs were treated as the dimensionless measures of the partial productivity identifying strengths and weaknesses of the productive technology associated with respective factors (inputs). Decomposition of the aggregate inputs showed that the crop and mixed farming were the most labour intensive activities, i. e. labour shares in the aggregate inputs were lower than those for the livestock farms. Land and intermediate consumption, on the other hand, were found out to be the two relatively more productive factors specific with generally increasing shares in the aggregate input during 2004–2009.

JEL codes: C440, C610, Q100, Q130.

Keyword(s): partial productivity, family farms, Lithuania, data envelopment analysis

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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

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