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Comparative Efficiency of Family and Corporate Farms: Does Family Labour Matter?

Kostov, Philip, Davidova, Sophia M., Bailey, Alastair (2019) Comparative Efficiency of Family and Corporate Farms: Does Family Labour Matter? Journal of Agricultural Economics, 70 (1). pp. 101-115. ISSN 0021-857X. E-ISSN 1477-9552. (doi:10.1111/1477-9552.12280) (KAR id:66312)

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We examine the comparative efficiency of family relative to corporate farms, using FADN data for the Czech Republic, Hungary, Romania and Spain. We estimate a non-parametric non-separable farm production function, and derive efficiency scores for both family and corporate farms. We decompose efficiency into two distinct sources - organisational differences and management capabilities. We find evidence for organisational efficiency gains from family farming, relative to corporate farming, and these appear to increase with family involvement. However, with regard to the management capabilities, family farms do not compare so favourably. Furthermore, family involvement does not seem to have any systematic effect on the efficiency derived from management capabilities. Our findings suggest that further investigation of the way family farms employ and build management capabilities is needed to substantiate any ‘superiority’ claims.

Item Type: Article
DOI/Identification number: 10.1111/1477-9552.12280
Uncontrolled keywords: family farms; quantile regression; technical efficiency; efficiency density; managerial capabilities; Czech Republic; Hungary; Romania; Spain
Divisions: Divisions > Division of Human and Social Sciences > School of Economics
Depositing User: Sophia Davidova
Date Deposited: 07 Mar 2018 15:16 UTC
Last Modified: 08 Dec 2022 22:04 UTC
Resource URI: (The current URI for this page, for reference purposes)
Davidova, Sophia M.:
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