Acta Univ. Bohem. Merid. 2013, 16(2):157-167 | DOI: 10.32725/acta.2013.015457

The Relationship between the Effectiveness of Production Factors and Business Performance in Agriculture

Martina Novotná, Jaroslav Svoboda
University of South Bohemia in České Budějovice

Keywords: Efficiency, Productivity (one-factor, total factor), Return on Assets (ROA), Agricultural enterprise

The effectiveness of production factors can be evaluated against several relations, which must always be understood as relations between output and input. The aim of this paper is to assess the relationship between the effectiveness of production factors and business performance. One-factor productivity (more precisely labour productivity), total productivity (TFP) - on the basis of economic profit and Return on Assets (ROA) - the most synthetic indicator of profitability, were the applied indicators at approx. 820 agricultural enterprises. In the reference period (2004 - 2010) it was possible to describe the impact of the Czech Republic's accession to the European Union on the selected agricultural enterprises. The agricultural enterprises system was further classified according to several criteria to verify the assumption that enterprises with higher efficiency of production factors have a higher Return on Assets (ROA).

JEL classification: G31, G32, Q14

Published: January 31, 2014  Show citation

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Novotná, M., & Svoboda, J. (2013). The Relationship between the Effectiveness of Production Factors and Business Performance in Agriculture. Acta Universitatis Bohemiae Meridionalis, 16(2), 157-167. doi: 10.32725/acta.2013.015
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