New method boosts crop farm productivity by 2.63% annually
The article introduces a new method to break down productivity growth in farming. By analyzing data from Greek crop farms, the researchers found that labor productivity increased by 2.63% annually. The main factors contributing to this growth were technical change (71.6%) and improvements in technical efficiency (38.2%). However, the substitution effect had a negative impact on labor productivity (19.9%). This research helps us understand how different factors affect productivity in agriculture, which is crucial for ensuring food security and economic growth.