RESEARCH PAPER
FACTOR RELATIONS IN AGRICULTURE – CONCEPTUAL REASONING WITH EMPIRICAL VERIFICATION
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Instytut Ekonomiki Rolnictwa i Gospodarki Żywnościowej Państwowy Instytut Badawczy
Submission date: 2020-06-29
Final review date: 2020-12-19
Acceptance date: 2021-01-20
Publication date: 2021-03-15
Zagadnienia Ekonomiki Rolnej / Problems of Agricultural Economics 2021;366(1):59-73
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ABSTRACT
The research presented in the paper allowed the author not only to fully recognize
the correctness of production processes, but also determine the relations
between production factors and production volumes (productivity and factor
relations). Based on the adopted analytical assumptions and general conditions
of farming processes in agriculture, the paper analyzes relations between
production factors, i.e., the essence of production techniques. The research on
relations between production factors is very complex, thus the paper focuses
only on some areas of the issue, such as: labor productivity and its dependency
on technical equipment of labor or agrarian structure (approximate land-labor
ratio) and the dependency of capital-labor and land-labor ratios on production
factors. The analysis is based on the principle of generality and the methodological
approach for deduction is used in the paper. The empirical part of the paper
uses the dataset for selected EU countries. It was concluded that the (K/L) ratio,
relatively to (Z/L) ratio, has a greater impact on the level of labor productivity.
These conclusions may be significant for agricultural policy, since improving
the agrarian structure does not seem to be a priority, whereas the technical
equipment of labor seems to be more important. Thus, it is crucial to increase
the involvement of the capital factor.