The economic efficiency of agriculture and its contribution to regional economies in Poland

Abstract

The study assesses the variation in terms of the share of agriculture in the economy of individual regions in Poland and assesses its economic effectiveness in comparison to the entire regional economy. The economic efficiency of agriculture is assessed using the indicators of labour productivity and fixed assets productivity. The research uses the public statistics panel data from 2002-2015. It was found that the level of employment in agriculture, and labour productivity in agriculture, against the background of the economy of regions is highly diversified. Large differences in labour productivity in the sector are an obstacle for the convergence of regional agriculture. A positive relationship was observed between the state of development of the economy of individual regions, and the effectiveness and potential of agriculture. A higher level of regional economic development makes it possible to effectively eliminate structural defects in agriculture, especially related to excess labour force. As a result of the research, a beneficial feedback loop was shown between the development of a region’s economy and the economic efficiency of agriculture, expressed, among others, by labour productivity and the productivity of fixed assets.