The Relationship Between Economic Performance, Sustainability, and Agricultural Productivity: Empirical Evidence from the European Union

Agriculture in the European Union operates in a context where productivity, output growth, and sustainability increasingly shape policy priorities and economic choices. This research explores how these elements have interacted and influenced one another from 2000 to 2024, focusing on the dynamic relationships among economic performance, sustainability, labor productivity, and agricultural output across EU member states. The methodology is straightforward: it starts with factor analysis to uncover the fundamental structures linking key variables and to clarify connections that are often hidden in aggregated data. Building on these insights, a General Linear Model provides a clearer picture of how economic performance and sustainability affect changes in labor productivity and agricultural output, revealing the mechanisms through which these factors promote or hinder agricultural progress. To enhance understanding, cluster analysis groups EU countries according to shared patterns, enabling interpretation of national differences within broader structural trends rather than as isolated cases. The findings show that countries with stronger economies and more consistent sustainability initiatives tend to achieve higher productivity and output, while the clusters identified demonstrate significant differences that explain the diverse development paths within the Union.