Productivity and efficiency are the two interrelated factors influencing competiveness of a certain firm, sector, or state. It is therefore important to analyse the patterns of productivity and efficiency change in various sectors. This study thus employed the Luenberger productivity index as a measure of the total factor productivity in Lithuanian family farms. Specifically, the sample of 200 farms operating throughout 2004-2009 was analyzed. The analyzed farms were classified into crop, livestock, and mixed ones regarding their output structure. The paper presents a survey on application of frontier techniques in research of the Lithuanian agricultural sector as well as frontier measures of efficiency. Especial attention is paid for the Luenberger productivity index and decomposition thereof. The carried out analysis identified the sources of productivity changes across different farming sectors. Both mixed farms and crop farms were specific with higher efficiency and productivity gains caused by efficiency effect (catch-up) and lower gains from the overall technological change if compared to livestock farms.
Keywords: Productivity, efficiency, Luenberger index, data envelopment analysis, family farms.
Baležentis, T.; Baležentis, A. Application of the Luenberger Index to Estimating Dynamics of the Total Factor Productivity in Lithuanian Family Farms // Ekonomika ir vadyba: aktualijos ir perspektyvos. 2012, Nr. 3(27), p. 70-79. ISSN 1648-9098 [IndexCopernicus].
