Technical efficiency and total factor productivity in Czech agriculture

The paper deals with the analysis of technical efficiency and the total factor productivity (TFP) in Czech agriculture. The aim is to identify the key factors determining the efficiency of input use and the TFP development. The Fixed Management model is used for the estimation of technical efficiency and the construction of TFP for the total agriculture and its individual branches. The results show that technical inefficiency is an important phenomenon in Czech agriculture and its individual branches. The TFP development is determined by all components, i.e., technical efficiency, scale effect, technological change and management. Their contributions differ intrasectorally and intersectorally, and also in time. Finally, the developments in the individual branches are characterized by idiosyncratic factors, as well as the systemic effect, especially in the animal production. The most important factors which determine both technical efficiency and TFP are the factors connected with institutional and economic changes, in particular a dramatic increase in the imports of meat and increasing subsidies.