Ms. Anna Agrapetidou, PhD candidate, Economics, Democritus University of Thrace, Greece
The third column of the Table below, reports the percentage of the labor force employed in agriculture; in the fourth column we present the GDP share of agriculture for each country. Finally, in the last column we produce a Balassa-like revealed productivity index by dividing the share of agriculture in the GDP by the share of agriculture in total employment (column four divided by column three). Thus, the last column provides a comparable measure of the revealed productivity of the agricultural sector in Europe. It measures for each country, the share of GDP produced by a 1% employment in the agricultural sector.
As one can see, there are striking differences in the productivity of labor in agriculture within Europe. Malta, Denmark and Norway are of the three most productive countries while Greece, Portugal and Montenegro are at the bottom of this list. It is interesting that many northern countries appear to be the most productive in agriculture, despite the adverse weather conditions. One explanation of this interesting fact may be that these countries in order to overcome the adverse weather conditions have invested heavily in technology and equipment. Thus, they are able to produce more using a fraction of the labor needed in the south.
|A/A||Country||Employment in agriculture %||Agriculture sector as % of GDP||Relative productivity|
Source: World Bank and CIA World Factbook