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© 1992 Oxford University Press and the Foundation for the European Review of Agricultural Economics

research-article

Productivity gaps, price advantages and competitiveness in E.C. agriculture

JEAN CHRISTOPHE BUREAU and JEAN-PIERRE BUTAULT

Jean-Christophe Bureau INRA Station d'Economie 78850 Thiverval Grignon FranceJean-Pierre Butault INRA, E.S.R. ENGREF 14 rue Girardet 54042 Nancy cedex France

Received April 1, 1991;

Summary

Multilateral Törnqvist indexes are used to estimate relative levels of efficiency in wheat, beet, hog and milk production for the EC-10 countries. Purchasing Power Parities for aggregate input are computed, thanks to specific PPPs for the agricultural sector on the basic heading level. They make possible a comparison of price advantages (for output and input) among countries. Explanations of these variations in terms of real exchange rates, green parities, tax policy and output quality suggest that considerable distortions of competition subsist in spite of the agricultural common market.

Keywords: Purchasing Power Parities, costs of production, productivity, competitiveness


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