Measuring Total Factor Productivity Change in Medium-Sized Portuguese Wine Producing Farms
Measuring Total Factor Productivity Change in Medium-Sized Portuguese Wine Producing Farms

Author(s): Fernando Teixeira, Olinda Sequeira
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Total factor productivity change; Malmquist Data Envelopment Analysis; Portuguese wine-producing farms
Summary/Abstract: This article presents a study on the productivity variation of medi¬um-sized Portuguese farms that produce wine. Quantifying these variations, commonly referred to as Total Factor Productivity (TFP), lies at the core of the economic notion of productivity. The study applies the Malmquist Data Envel-opment Analysis approach, which calculates distance functions to generate indices of total productivity change. The data consists of 2 outputs and two inputs for 19 analyzed farms from 2019 to 2022. The main objective of the study was to understand if the productivity of wineries changed during the period of the COVID-19 pandemic, with a focus on the year 2020. The results show, on average, a decline in productivity during the COVID period, but with different outcomes for the set of farms, indicating that some farms were better prepared to face the COVID crisis.

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