Productivity and Profitability of the Czech Agricultural Sector After the Economic Crisis

In light of the recent economic crisis, a particular emphasis has been placed on the measurement of productivity and performance of agricultural sectors worldwide. This article deals with the assessment of the performance of the Czech agricultural sector using three measures: multifactor productivity, economic value added, and financial performance. The authors also compared the development of the values of these indicators with the overall economic growth of the Czech economy. No significant relationship between the development of the agriculture and economy has been found. This finding is in agreement with the idea that agricultural growth does not necessarily move in the same direction as the GDP growth. The authors also observed a sharp drop of performance in 2008/2009 which has been due to the economic crisis which has hit all Czech, but also foreign industries and sectors. However, in recent years, the performance of the Czech agricultural sector has been increasing which suggest that the sector is recovering from the economic crisis. Key-Words: -Total factor productivity; economic value added, financial performance; agriculture; Czech Republic.