46th Congress of the European Regional Science Association: "Enlargement, Southern Europe and the Mediterranean", August 30th - September 3rd, 2006, Volos, Greece
This paper aims at the analysis of determinants of efficiency of arable crops in a spatial context in Greece. Moreover it suggests policy interventions in order to diminish regional inequalities in efficiency and to raise the average level of efficiency, so as Greek arable crops will follow the new CAP framework which imposes single area payment scheme (SAPS). Efficiency will be estimated within the production function framework using a quasi-production function. In empirical analysis production functions are specified as spatially seemingly unrelated regression equations (spatial SURE). In the paper spatial lag and spatial error specifications as well as common SURE estimations are tested. Data come from National Statistical Service.