Simonas Eidukaitis

Faculty of Economics and Business Administration, Vilnius University,

Lithuania

simonas.eidukaitis@ef.stud.vu.lt

Agricultural revenue in Latvia, Lithuania, and Poland: An application of the LMDI decomposition

Tomas Balezentis

Faculty of Economics and Business Administration, Vilnius University,

Lithuania

tomas.balezentis@evaf.vu.lt 

ORCID 0000-0002-3906-1711

Abstract. This paper analyses the trends and sources of change in agricultural revenue for the new European Union (EU) member states, namely Latvia, Lithuania, and Poland. These countries still lag behind the old EU member states in terms of profitability, productivity, and farm size. Thus, assessment of the patterns in agricultural revenue changes in these countries may provide evidence for reasonable policy making. The period covered is 2011-2019. The analysis is carried out for selected agricultural products (wheat, milk, poultry, potatoes). The logarithmic mean Divisia index is applied for the decomposition. The results indicate that the effects of scale, productivity, and price change varied across the countries and products. Therefore, dedicated policy measures and pathways are needed for each particular context.

Received: November, 2021

1st Revision: May, 2022

Accepted: September, 2022

DOI: 10.14254/2071-8330.2022/15-3/1

JEL Classification: C43, Q10

Keywords: change, agriculture, crop farming, animal farming, index decomposition analysis