Journal articles on the topic 'Technical efficiency (TE)'
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Mareth, Taciana, Antônio Márcio Tavares Thomé, Luiz Felipe Scavarda, and Fernando Luiz Cyrino Oliveira. "Technical efficiency in dairy farms." International Journal of Productivity and Performance Management 66, no. 3 (March 6, 2017): 380–404. http://dx.doi.org/10.1108/ijppm-09-2015-0131.
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Purpose This systematic literature review integrates the findings of existing studies regarding technical efficiency (TE) in dairy farms. The purpose of this paper is to offer a research framework that assembles TE descriptors, a classification of previous literature that provides the basis for the synthesis and research agenda. Design/methodology/approach This paper systematically reviews 86 survey research studies using rigorous and reproducible procedures. The review is applied to published survey research. Findings The framework relates context, inputs, outputs and metrics of TE. There is no agreement among the authors on the context and determinants of TE. The main determinants of TE are geographical location, farm size, investments in veterinary care, feeding and milking practice, TE model estimation techniques, public policy, and management-related variables. This paper offers ten propositions for future research on the controversial results on the determinants of TE. The authors also explore the reasons for the discrepant results based on the Debreu-Farrell’s definition of TE, the contingency theory and the resource-based view of the firm, elucidating the literature and serving as a basis for future investigation. Implications for dairy farmers and researchers close the review. Originality/value Meta-analysis and meta-regression studies were long at the forefront of reviews in the TE of dairy farms. This paper offers a novel qualitative research synthesis with frameworks and the classification of previous literature and a research agenda, which provides a new and different perspective for analysis, by innovating over the available quantitative procedures to combine statistical results.
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Musliu, Arben, Blend Frangu, Jennie S. Popp, Nathan Kemper, and Michael Thomsen. "TECHNICAL EFFICIENCY ESTIMATION OF DAIRY FARMING IN KOSOVO." New Medit 18, no. 3 (September 15, 2019): 77–84. http://dx.doi.org/10.30682/nm1903f.
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The aim of this research paper is to assess the technical efficiency (TE) of milk production in Kosovo using the stochastic frontier analysis. Research data are collected through surveys from 100 commercially oriented dairy farmers. The study finds that TE of milk production by most of these farms is high. Using the Cobb-Douglas production function, individual measures of TE range from 0.87 to 0.98 (on a scale of 0 to 1.00) with the average being 0.95. There were 57 farms with TE greater than 0.95 and 35 farms with TE less than 0.95. In the study’s sample, female dairy farmers have roughly the same mean TE of 0.95 as male dairy farmers. The variation in milk production among the sampled farms was modeled in terms of concentrate and forage feed costs and pre-production costs. The study suggests that concentrate feed and pre-production costs can significantly influence TE of milk production among Kosovar dairy farms.
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Náglová, Zdeňka, and Marie Šimpachová Pechrová. "Technical efficiency of the food and drink industry and its determinants." Agricultural Economics (Zemědělská ekonomika) 67, No. 10 (October 26, 2021): 409–22. http://dx.doi.org/10.17221/93/2021-agricecon.
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This study focuses on evaluating the technical efficiency (TE) of food and drink companies in the Czech Republic and on finding its determinants. The analysis is based on the data of 597 firms and uses the stochastic frontier method. We have identified the key players in the market and the less effective groups of processors. Foreign-owned companies have a strong position because of a better economy, but the results showed that their efficiency is comparable with that of Czech-owned companies. The results helped confirm that the size of the company influences its TE. The lowest efficiency was observed in small companies. TE also differed among branches of the food industry. The highest efficiency was in the bakery and milk industries, and the lowest efficiency was in fruit and vegetable processing. Subsidised firms reached a significantly higher efficiency. With respect to economic results, there is still a need to improve competitiveness through investments.
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Náglová, Zdeňka, and Tamara Rudinskaya. "Factors Influencing Technical Efficiency in the EU Dairy Farms." Agriculture 11, no. 11 (November 9, 2021): 1114. http://dx.doi.org/10.3390/agriculture11111114.
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This paper aims to analyse the technical efficiency (TE) of dairy farms and find its determinants. To accomplish this problem, the Stochastic Frontier Analysis was applied. The data were obtained from the Farm Accountancy Data Network database for dairy farms (TF15-45—Specialist dairying) for 2004–2019. Dairy farms were divided into four clusters according to their physical size (number of livestock units per farm) and economic size (standard output per farm). The largest farms by physical and economic size are located in Denmark and Cyprus. The smallest, in comparison, are in Bulgaria, Croatia, Latvia, Lithuania, Austria, Poland, Romania, and Slovenia. Farms in the EU are relatively technically efficient, i.e., they use their resources efficiently to produce maximum output (production). However, they have the potential to achieve better economic results and be more competitive, as the size of farms’ is not fully optimised. The abolition of the milk quota can be considered a factor in improving technical efficiency, as the indicator is higher after the abolition. New and old member states have almost comparable technical efficiency levels (the p-value of the t-test is 0.463), with old members having slightly higher level TE. Subsidies have contradictory effects on TE. Farm efficiency with higher subsidies per cow is higher for farms with €51–100/cow. However, as subsidies increase, TE decreases. Only the group of farms with the highest subsidies has a higher TE. More diversified farms are more technically efficient than specialised farms. Milk yield did not influence the analysed indicator. The analysis results can serve the stakeholders as a tool for modelling future agricultural policy, as the European farms are very heterogenous and show different conditions and economic outcomes.
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Anang, Benjamin Tetteh, Emmanuel Owusu Dokyi, Bright Owusu Asante, and Samuel A. Donkoh. "Technical efficiency of resource-poor maize farmers in northern Ghana." Open Agriculture 7, no. 1 (January 1, 2022): 69–78. http://dx.doi.org/10.1515/opag-2022-0075.
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Abstract Farm productivity in most developing countries remains low, hence the need to enhance technical efficiency (TE) of producers. This study evaluates the TE of maize production in rural Ghana, using primary data from a survey of smallholder producers. A two-stage double bootstrap data envelopment analysis (DEA) approach was used to assess TE and its determinants. The results revealed a bias-corrected mean TE of 68% (as opposed to 81% using the traditional DEA approach). Hence, with the prevailing technology and current input levels, farmers can increase their TE of maize production by 32%. TE increased with adoption of improved varieties, weeding frequency, and herd size but decreased with producer’s age, household size, educational status, and group membership. Subsequently, these factors need to be carefully considered in targeting policies for increasing maize productivity. The study observed increased adoption of improved varieties and training in efficient methods of weed control as important measures to enhance TE of maize farmers.
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Pisulewski, Andrzej, and Jerzy Marzec. "Heterogeneity, transient and persistent technical efficiency of Polish crop farms." Spanish Journal of Agricultural Research 17, no. 1 (April 15, 2019): e0106. http://dx.doi.org/10.5424/sjar/2019171-13926.
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Accounting for heterogeneity in the measurement of farm efficiency is crucial to avoid biases related to climate and soil quality diversity in a given area. Therefore, this paper investigates the level of technical efficiency (TE) of Polish crop farms based on several stochastic frontier panel data models with different approaches to the measurement of unobserved heterogeneity, short- and long- run inefficiency. In our study, we show that ignoring farm heterogeneity can lead to underestimation of the level of TE in conventional stochastic frontier panel data models. Moreover, we have found empirically that not accounting for heterogeneity in the Generalized True Random Effects model may lead to incorrect estimates of persistent TE. The obtained results for Polish crop farms indicate that the level of transient TE (0.81) is lower than the level of persistent TE (0.88). This result suggests that Polish farms may have, for example, problems with adopting new technologies and poor managerial skills.
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Islam, Md Sariful, and Mohammed Ziaul Haider. "Poverty and technical efficiency in presence of heterogeneity in household behaviours." International Journal of Social Economics 45, no. 11 (November 5, 2018): 1490–514. http://dx.doi.org/10.1108/ijse-04-2017-0171.
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Purpose The purpose of this paper is to investigate the relationship between poverty and technical efficiency (TE) of paddy farmers in presence of their heterogeneous selling behaviours. This paper explains how such behavioural heterogeneity affects this relationship in south-western Bangladesh. Design/methodology/approach Translog production frontier model was used to estimate TE since it fitted the data set better. On the other hand, poverty indices were constructed by using P-α method. Then, multinomial logit models examined the existence of heterogeneous selling behaviours. It revealed adequate evidences in favour of behavioural heterogeneity. Finally, the authors employed a series of two stage instrumental variable regression models to relate poverty and TE with and without considering the behavioural heterogeneity. Findings The study finds that around 18, 39 and 44 per cent of households exhibit autarkic, non-wholesaling and wholesaling behaviour, respectively. Market failure due to transaction cost and credit constraints leads to emergence of such heterogeneity. Across these heterogeneous behaviours, impact of improving TE on poverty status significantly differs. Without controlling behavioural heterogeneity, TE significantly improves the poverty status of the rural farm households. However, scenario is changed after controlling this heterogeneity. After behavioural segregations, TE improves poverty status only for wholesalers. In contrary to prior expectation, it worsens the poverty situation for both autarkic and non-wholesaling households. Simultaneous failure in both credit and product market for these households might be the plausible reason behind this heterodox finding. Credit market failure compels these households to borrow from local money lenders with costlier terms. This effort might improve their TE. But, product market failure makes their additional production due to improved TE unsold. Thus, repayment of credit directly reduces their consumption expenditure. Therefore, an effort to improve TE might increase prevalence and depth of poverty when market failure exists. Henceforth, the improvement of TE appears as an effective policy instrument only when households exhibit wholesaling behaviour. Originality/value The earlier studies show the relationship between TE and poverty status but did not account behavioural heterogeneity. The authors attempt to overcome this shortcoming and show how market failure induced behavioural heterogeneity affects the effectiveness of TE on improving poverty status of farm households.
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Zhao, Linlin, Lin Zhang, and Yong Zha. "Industrial Efficiency Evaluation in China: A Nonparametric Production-Frontier Approach." Sustainability 11, no. 18 (September 13, 2019): 5019. http://dx.doi.org/10.3390/su11185019.
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An industrial system has positive and negative strategies to adapt to environmental regulations, which can be defined as natural disposability and managerial disposability. Meanwhile, the operational process of an industrial system can be divided into regular production activities and pollutant control activities. Within this, industrial system’s technical efficiency (TE) can be decomposed into economic efficiency (ECE) and environmental efficiency (ENE). On the basis of natural disposability and managerial disposability, this paper proposes static and dynamic data envelopment analysis (DEA) models to evaluate the efficiencies of industrial systems. Based on the proposed approach, TE, ECE, ENE, and Malmqusit productivity index (MPI) values were obtained simultaneously. The MPI values were further separated into the effects of static efficiency change and technical change. The proposed method was applied to assess the technical efficiencies of Chinese regional industrial systems between 2011 and 2015. Key findings are that (1) the low ENE is the main source of technical inefficiency; (2) the average static TE and ENE under natural disposability are both lower than those under managerial disposability; (3) the static efficiency change and technical change of TE are similar to those of ENE; and (4) the technical change has a significant impact on the changes in TE.
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Afrin, Sonia, Mohammed Ziaul Haider, and Md Sariful Islam. "Impact of financial inclusion on technical efficiency of paddy farmers in Bangladesh." Agricultural Finance Review 77, no. 4 (November 6, 2017): 484–505. http://dx.doi.org/10.1108/afr-06-2016-0058.
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Purpose The purpose of this paper is to investigate the impact of financial inclusion on the enhancement of paddy farmers’ technical efficiency (TE). The impact was evaluated rigorously from different dimensions which could be useful in the policy discussion for enhancing efficiency in utilizing productive resources. Design/methodology/approach A cross-sectional data of randomly selected 120 paddy farmers from Khulna district in the Southwest region of Bangladesh were collected for this study. Initially, a stochastic production frontier approach was used for estimating farmers’ TE. Thereafter, ordinary least squares and quantile regression models were applied for unveiling the existing relationship between TE and various dimensions of financial inclusion after controlling all other socio-economic characteristics. Findings The study findings revealed that farmers were around 86 percent technically efficient and amongst them, credit takers were more efficient than non-credit takers. A non-monotonic relationship between TE and amount of credit was observed where TE was maximized at amount around 20,000 Bangladeshi Taka (USD255), a medium credit in terms of its amount. In addition, credit literacy was identified as a significant factor for improving TE. Though difference in the choice of sources for accessing credit had little impact on mean TE, its effect was found significantly higher for low scored technically efficient farmers compared to high scored farmers. Practical implications The policy toward widening the coverage of financial inclusion would be more effective than providing larger amount of credit to a limited number of farmers for improving their TE. Originality/value Such an in-depth assessment of the impact of financial inclusion on TE is probably the first effort in the Khulna district of Bangladesh.
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Mareth, Taciana, Luiz Felipe Scavarda, Antonio Marcio Tavares Thomé, Fernando Luiz Cyrino Oliveira, and Tiago Wickstrom Alves. "Analysing the determinants of technical efficiency of dairy farms in Brazil." International Journal of Productivity and Performance Management 68, no. 2 (February 11, 2019): 464–81. http://dx.doi.org/10.1108/ijppm-06-2018-0234.
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PurposeThe purpose of this paper is to analyse the determinants of technical efficiency (TE) in dairy farms located in the South of Brazil, aiming for a better understanding of the topic for academics, dairy farmers and policymakers to improve the productivity and competitiveness of dairy farms.Design/methodology/approachThis study was developed using a two-stage approach. Data envelopment analysis was used to estimate the TE level and regression models to understand the factors affecting TE in dairy farms. The sample size is 253 dairy farms in the South of Brazil.FindingsThe variation in the mean TE indexes reported in the literature can be explained by the attributes of the analysed studies, including the education of the farm operator, farm size (number of cows and milk), feed and labour costs, and use of services. Additionally, the results suggest that dairy farmers in the sample could increase milk output by 50.1 per cent (level of inefficiency) on average if they improve their TE.Originality/valueThis study makes three important contributions: first, it formulates hypotheses from the previous literature’s propositions on the estimation of TE in dairy farms; second, it tests the hypotheses in an empirical study to understand the main factors affecting the TE in dairy farms of the selected municipalities in the South of Brazil; and third, it compares previous findings on the determinants of TE in dairy farms serving different stakeholders, such as researchers, farmers and government representatives, to improve the productivity and competitiveness of dairy farms.
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Setiawan, Maman, Nury Effendi, Ratni Heliati, and Alfi Syahrin Ario Waskito. "Technical efficiency and its determinants in the Indonesian micro and small enterprises." Journal of Economic Studies 46, no. 6 (October 14, 2019): 1157–73. http://dx.doi.org/10.1108/jes-08-2018-0298.
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Purpose The purpose of this paper is to investigate the technical efficiency (TE) of micro and small enterprises (MSEs) and its determinants in the Indonesian manufacturing sector covering comprehensive subsectors. Design/methodology/approach This research uses the data from the micro and small industry survey sourced from the Indonesian Bureau of Central Statistics for the period 2010–2015. The TE is estimated using data envelopment analysis (DEA) with bootstrapping approach. The TE is also estimated at the firm-level survey data, classified at the five-digit level of the International Standard Industrial Classification system. In addition, a truncated regression model is applied to estimate the effects of the determinants on the TE. Findings This research finds that there is a low average TE of the MSEs for the subsectors investigated. It is also found that the TE is associated with firm size, location, export orientations on domestic and world markets, firm age, level of technology, and owner education. Originality/value The literature investigating the TE of the MSEs and its determinants is still rare in Indonesia. Most of the previous research limited the studies for specific subsectors and/or specific small regions. Therefore, this research has a contribution in measuring the TE of the MSEs for comprehensive subsectors as well as its relation with the determinants in the Indonesian manufacturing sector. Also, the DEA with bootstrapping approach is applied to estimate the TE of the firms based on each relevant subsector, which is rare in the previous research of the Indonesian MSEs.
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Mwalupaso, Wang, Rahman, Alavo, and Tian. "Agricultural Informatization and Technical Efficiency in Maize Production in Zambia." Sustainability 11, no. 8 (April 25, 2019): 2451. http://dx.doi.org/10.3390/su11082451.
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The cropland productivity gap between Africa and the rest of the world is widening. Fortunately, increasing farmers’ access to useful agricultural information reduces the costs of searching for information, thereby leading to higher agricultural productivity and sustainability. This study investigates the association between the adoption of mobile phones to collect agricultural information and farmers’ technical efficiency (TE) in Zambia. Different from previous studies, we focus on the actual use of mobile phones by farmers rather than mere ownership. Farmers were selected using a two-stage sampling procedure, and the Cobb-Douglas (CD) production function is adopted to estimate the association using two approaches—the conventional stochastic production frontier (SPF) and propensity score matching-stochastic production frontier (PSM-SPF) model. In both cases, we found that the use of mobile phones is significantly and positively associated with farmers’ TE. However, the conventional SFP model exaggerates the TE scores by 5.3% due to its failure to mitigate biases from observed variables. Regarding the agricultural growth indicators (income and output) related to TE, a close inspection reveals that increasing mobile phone use to close the TE gap between the two groups could result in a 5.13% and 8.21% reduction in severity of poverty and extreme poverty, respectively. Additional research is essential to corroborate the findings and analyze the potential causal mechanisms. Our study provides strong evidence to promote mobile phone use in agricultural production in rural Zambia.
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Saputro, Arief, Nuhfil Hanani, and Fahriyah Fahriyah. "Performance of Sugarcane Farming Ratoon System in East Java Province." HABITAT 32, no. 2 (August 1, 2021): 93–100. http://dx.doi.org/10.21776/ub.habitat.2021.032.2.11.
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The fulfillment of national sugar consumption needs cannot be achieved by domestic production. Increase sugar cane production to fulfill the availability of sugar in Indonesia, one of which in the central production area of East Java is still constrained by many sugarcane farmers who are doing ratoon system more than three times, so the productivity is low. This study aimed to analyze the performance sugarcane farming ratoon system in East Java by looking at technical efficiency and scale efficiency using the non-parametric approach of Data Envelopment Analysis (DEA). Sampling in this study used multistage random sampling in Kediri, Malang, and Mojokerto Districts. The average total technical efficiency (TE CRS) of farmers with 1-3 ratoons is 0.754, the pure technical efficiency (TE VRS) is 0.817, and the scale efficiency is 0.926. The average TE CRS of farmers with 4-6 ratoons is 0.693, TE VRS is 0.814, and the scale efficiency is 0.860. For farmers who do more than seven ratoons, an average TE CRS is 0.609, TE VRS is 0.693, and scale efficiency is 0.894. The majority of sugarcane farmers at the research site have not been on an optimal business scale, namely in IRS conditions.
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Goncalves, Olga, Qi Bin Liang, Nicolas Peypoch, and Sara Sbai. "Technical Efficiency Measurement and Inverse 𝔹-Convexity: Moroccan Travel Agencies." Tourism Economics 18, no. 3 (June 2012): 597–606. http://dx.doi.org/10.5367/te.2012.0126.
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Pradhan, Abhilas Kumar. "Measuring Technical Efficiency in Rice Productivity Using Data Envelopment Analysis." International Journal of Rural Management 14, no. 1 (February 26, 2018): 1–21. http://dx.doi.org/10.1177/0973005217750061.
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The study has made an attempt to measure technical efficiency (TE) in rice productivity in Odisha during the period of 2011–13. An input-oriented data envelopment analysis (DEA) has estimated the average TE score at 79.10 per cent, indicating overuse of critical input resources to the tune of 20.90 per cent. The model found seed and fertilizers use can be reduced to the extent of 4.14 kg/ha and 26.58 kg/ha, respectively, without affecting the current productivity. Malmquist Index analysis for panel data on TE change indicates regress in efficiency for 14 districts, progress for 13 districts and no change for 3 districts. Nevertheless, the mean value of TE change over the study period was found to be 1, pointing neither progress nor regress in input resource utilization. The observed technical inefficiencies in resource use may be attributed to four important factors: (a) very small-sized operational land holding; (b) better off-farm income-generating activities and fluctuations of agricultural product prices; (c) traditional mindset of older farmers; and (d) low degree of involvement of farmers with the cooperative bodies. The DEA results suggest need for adoption of more efficient resource management practices in the state’s rice cultivation scenario.
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Dewi, Ivana Rosediana, and Bayu Arie Fianto. "EFISIENSI BANK SYARIAH ASEAN TAHUN 2013-2013: TWO-STAGE STOCHASTIC FRONTIER ANALYSIS." Jurnal Ekonomi Syariah Teori dan Terapan 7, no. 3 (June 25, 2020): 585. http://dx.doi.org/10.20473/vol7iss20203pp585-601.
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This study aims to determine the influences of internal and external variables of Islamic banks towards technical efficiency (TE)of Islamic banks in ASEAN 2013-2018. The data represented the sample from each country. The study was analyzed using two-step processes. The first stage is looking for technical efficiency (TE) with the Stochastic Frontier Analysis (SFA) as an intermediation approach. The second stage is conducting panel data regression analysis to determine the influence of internal and external variables of Islamic banks towards TE score. The result of the study indicates that the average TE value of Islamic banks in ASEAN at the periods of the study has very good efficiency of 0.92 (92.8 percent). Respectively, Islamic banks in Indonesia have TE score higher than Malaysia. Meanwhile, Islamic banks in Brunei Darussalam have the highest TE score, followed by Islamic banks in Thailand and the Philippines. The variable of total assets (lnTA), Degree of Capitalization (EQTA), and Bank's Financing Intensity (FINTA) have a positive and significant effect on the value of TE and the variable of economic growth (GDP) and inflation rate (CPI) have no effect on TE of sharia banks.Keywords: Technical Efficiency, Islamic Bank, ASEAN, Stochastic Frontier Analysis
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Mareth, Taciana, Antonio Marcio Tavares Thomé, Fernando Luiz Cyrino Oliveira, and Luiz Felipe Scavarda. "Systematic review and meta-regression analysis of technical efficiency in dairy farms." International Journal of Productivity and Performance Management 65, no. 3 (March 7, 2016): 279–301. http://dx.doi.org/10.1108/ijppm-02-2015-0027.
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Purpose – The purpose of this paper is to complement and extend previous literature reviews on Technical Efficiency (TE) in dairy farms, analysing the effects of different methodologies and study-specific characteristics on Mean TE (MTE). Design/methodology/approach – The researchers independently conducted a systematic review of more than 400 abstracts and 85 full-text papers. Original keywords were applied to seven key electronic databases. Results from a meta-regression analysis of 85 published papers totalling 443 TE distributions in dairy farms worldwide are discussed. Findings – The variation in the MTE indexes reported in the literature can be explained by the methodology of estimations (method of estimation, functional form of frontier models, model dimensionality), the farms geographical location and farm size. Additionally, the results suggest that, given the state of technology prevailing in each country at the time that the studies on TE were conducted, dairy farmers in the sample could increase milk output by 20.9 per cent (level of inefficiency), on average, if they produce on their frontiers. Originality/value – This study makes two important contributions: first, it updates and compares previous works on frontier estimation of TE in dairy farms; and second, it adds two dimensions of dairy farms, size (herd and land area) and economic development, to the known differentials of TE measurement.
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Mendieta-Peñalver, Luis Felipe, José F. Perles-Ribes, Ana B. Ramón-Rodríguez, and María J. Such-Devesa. "Is hotel efficiency necessary for tourism destination competitiveness? An integrated approach." Tourism Economics 24, no. 1 (September 20, 2016): 3–26. http://dx.doi.org/10.5367/te.2016.0555.
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This study investigates the relationship between tourism destination competitiveness and the competitiveness of international hotel firms using an integrated approach based on Porter (1990). A mediation model is employed to link destination competitiveness, efficiency and firm competitiveness. Global technical efficiency, pure technical efficiency and scale efficiency are estimated through data envelopment analysis techniques. The results confirm a positive relationship between destination competitiveness and firm competitiveness, but efficiency does not play a mediating role linking both.
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Ojo, Mathew Paul, and Adeolu Babatunde Ayanwale. "Estimating farm-level financing gap: a technical efficiency approach." Agricultural Finance Review 79, no. 2 (April 1, 2019): 174–91. http://dx.doi.org/10.1108/afr-02-2018-0008.
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Purpose Much attention has been paid to farm credit access with less focus on determining the actual credit amount needed to bring about a specified increase in productivity relative to the finance being sought. The paper aims to discuss this issue. Design/methodology/approach Using 2016 cross-sectional data of plantain farmers, the authors employ the Cobb–Douglas stochastic frontier production function to determine the technical efficiency (TE) of each farmer. Current plantain quantity produced by farmers and the TE are then used to estimate plantain quantity at a target efficiency. The finance needed to produce at the target efficiency is estimated using the Harrod–Domar (HD) growth equation and the authors then subtract the farmers’ savings from the estimated amount to determine the financing gap of the farmers. Findings Results of this study show that the actual amount required to improve the productivity of farmers to target levels of TE can be estimated and that credit amount granted to farmers can be tied to a specific production efficiency. Credit schemes with interest rates below 9 per cent are more beneficial to farmers while access to credit is determined by interest rate, education, credit process duration, land ownership and asset value in the study area. Research limitations/implications The implication of this research is that it opens up the possibility of further exploring the application of the HD theory at the micro level. Practical implications The findings in this study have important implications on the provision of agricultural credit to small farmers. The first is that the TE of farmers plays a very critical role in determining the actual amount of credit needed to bridge the farm-level financing gap and impact positively on productivity. Second, while it is important to bridge the farm-level financing gap, this can only be beneficial to the farmers at single-digit interest rates below 7 per cent. Finally, granting of credit to farmers can be tied to specific production increase target to reduce indiscipline and mismanagement in credit use. Social implications The findings of this study will go along in helping to prevent mismanagement and indiscipline in the use of scarce financial resources in agricultural production. Originality/value This study is the first of its kind, using TE and bringing the HD equation down to the farm level to estimate the exact amount required by farmers to bring about specific increase in production, determining the credit amount beyond which mismanagement may set in.
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Mukhtar, Umar, Zainalabidin Mohamed, Mad Nasir Shamsuddin, Juwaidah Sharifuddin, and Muhammad Bala. "Econometric analysis of technical efficiency of pearl millet farmers in Kano State, Nigeria." E3S Web of Conferences 52 (2018): 00049. http://dx.doi.org/10.1051/e3sconf/20185200049.
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In Nigeria, particularly the northern parts, pearl millet is a traditional crop that is very important to nation’s food security. Empirical evidence indicates that the main problem in pearl millet production in Nigeria is associated with low productivity and inefficiency in allocation of resources. This study therefore sought to analyse the Technical Efficiency (TE) of pearl millet farmers in Kano State of Nigeria, being the state with highest concentration of pearl millet farmers. SFA approach is used on a data collected from 256 randomly sampled pearl millet farmers during 2013/2014 cropping season. The study discovers that all the production inputs/variables included in the Cobb-Douglas Stochastic Frontier function with exception of agrochemicals were positively and significantly associated with TE. The TE range of 21% to 94% and mean TE of 73% were obtained from the analysis. The study also reveals that access to credit, education, extension and household size were the major contributors to TE. This therefore calls for formulation of appropriate policy that would extend these key determinants of TE which would go a long way in improving farmers’ efficiency level and economic benefits. This study contributes the first SFA approach in estimating TE of pearl millet farmers in Kano State, Nigeria, which can effectively help in addressing food insecurity problem in the country.
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Osinowo, Olatokunbo H., and Esther T. Tolorunju. "TECHNICAL EFFICIENCY OF POULTRY EGG PRODUCTION IN OGUN STATE, NIGERIA." Journal of Agribusiness and Rural Development 51, no. 1 (April 5, 2019): 51–58. http://dx.doi.org/10.17306/j.jard.2019.01137.
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There is a retarded growth in poultry egg production in Ogun state, Nigeria. This has led to high cost of production and the average market prices of the product. The study therefore examined the technical efficiency of poultry egg production in Ogun state, Nigeria using the stochastic frontier production function model. Primary data were collected using a set of structured questionnaire from one hundred and twenty (120) poultry egg farmers who were selected using multi-stage sampling techniques, from Poultry Association of Nigeria, Ogun State chapter. The level of technical efficiencies (TE) varied widely across farms, ranging between 64 percent and 97 percent, with a mean value of 85.6 percent. Only years of experience negatively affected the TE while an increase in other socio-economic variables, such as education, age and location of farm led to an increase in the TE value. The major constraints in poultry egg production ranked in order of unbearable cost of feed, inadequate fund and capital, lack of disease control facilities and unstable power supply. This study recommends dissemination of improved modern technology in egg production to the poultry egg farmers.
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Zewdie, Markose Chekol, Michele Moretti, Daregot Berihun Tenessa, Zemen Ayalew Ayele, Jan Nyssen, Enyew Adgo Tsegaye, Amare Sewnet Minale, and Steven Van Passel. "Agricultural Technical Efficiency of Smallholder Farmers in Ethiopia: A Stochastic Frontier Approach." Land 10, no. 3 (March 1, 2021): 246. http://dx.doi.org/10.3390/land10030246.
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In the past decade, to improve crop production and productivity, Ethiopia has embarked on an ambitious irrigation farming expansion program and has introduced new large- and small-scale irrigation initiatives. However, in Ethiopia, poverty remains a challenge, and crop productivity per unit area of land is very low. Literature on the technical efficiency (TE) of large-scale and small-scale irrigation user farmers as compared to the non-user farmers in Ethiopia is also limited. Investigating smallholder farmers’ TE level and its principal determinants is very important to increase crop production and productivity and to improve smallholder farmers’ livelihood and food security. Using 1026 household-level cross-section data, this study adopts a technology flexible stochastic frontier approach to examine agricultural TE of large-scale irrigation users, small-scale irrigation users and non-user farmers in Ethiopia. The results indicate that, due to poor extension services and old-style agronomic practices, the mean TE of farmers is very low (44.33%), implying that there is a wider room for increasing crop production in the study areas through increasing the TE of smallholder farmers without additional investment in novel agricultural technologies. Results also show that large-scale irrigation user farmers (21.05%) are less technically efficient than small-scale irrigation user farmers (60.29%). However, improving irrigation infrastructure shifts the frontier up and has a positive impact on smallholder farmers’ output.
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Dlamini, Nkosingiphile P., Micah B. Masuku, and Jeremiah I. Rugambisa. "Technical Efficiency of Mushroom Farmers in Swaziland." Journal of Applied Biotechnology 6, no. 1 (September 5, 2017): 1. http://dx.doi.org/10.5296/jab.v6i1.11811.
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Mushrooms have been cultivated in Swaziland since 2001 as part of a long-term programme which sought to improve rural livelihoods through commercial production of non-conventional high-value commodities. Despite the mushroom enterprise gaining popularity in a number of Sub-Saharan African (SSA) countries, where production is dominated by rural-based small-scale farmers, limited research has been done to study the technical efficiency of mushroom farmers in Swaziland.The primary objectives of this study were to determine the level of technical efficiency of mushroom farmers in Swaziland and identify factors which influence technical efficiency of mushroom farmers. Measures of technical efficiency were conducted with 62 farmers in the four Agro ecological zones of Swaziland. The list of current mushroom farmers was obtained from the Mushroom Development Unit in Malkerns. The Stochastic frontier production function was used to compute the level of technical efficiency (TE). The results revealed that the mean technical efficiency was 95%. The results suggest that substantial gains in output can be attained by improving present technical practices which includes the increase in the amount of substrate used. A two limit Tobit regression technique was used to examine the relationship between TE and various farm and farmer characteristics. The results showed that household size was significant at 5% level, technical assistance was also significant at 5% and access to credit was significant at 10% level. It was recommended that extension officers equip farmers on technologies that will help boost their efficiency level and policies that will make access to credit from government and NGO’s for mushroom farmers to acquire resources.
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Duho, King Carl Tornam. "Intellectual capital and technical efficiency of banks in an emerging market: a slack-based measure." Journal of Economic Studies 47, no. 7 (May 20, 2020): 1711–32. http://dx.doi.org/10.1108/jes-06-2019-0295.
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PurposeThis paper investigates the impact of intellectual capital and its components on slack-based technical efficiency (SBM-TE) of banks.Design/methodology/approachData envelopment analysis is used to compute SBM-TE scores and the Value-Added Intellectual Coefficient (VAIC™) model is used to measure intellectual capital. An unbalanced panel of 32 banks that operated from 2000 to 2017 has been used.FindingsOverall, the efficiency scores are averaged at 79%, suggesting that an inefficient bank needs to enhance technical efficiency by 21% to be at par with the best performing banks. Beta-convergence and sigma-convergence exist among banks with faster speed evident among listed and local banks. Intellectual capital has a positive impact on SBM-TE and human capital is the main driver of technical efficiency among banks. This result is specifically evident among non-listed banks and foreign banks. Economies of scale property are also evident among the banks. Competition and asset tangibility inhibit technical efficiency among banks.Practical implicationsBanks are advised to invest in value-adding emerging technologies and their employees so as to enhance their efficiency. The study offers insights for policymakers, practitioners and researchers in emerging markets.Originality/valueThe study is premier in employing the SBM-TE to explain the intellectual capital and efficiency nexus, as well as, testing for both beta-convergence and sigma-convergence.
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Ogundari, K. "Resource-productivity, allocative efficiency and determinants of technical efficiency of rainfed rice farmers: A guide for food security policy in Nigeria." Agricultural Economics (Zemědělská ekonomika) 54, No. 5 (June 13, 2008): 224–33. http://dx.doi.org/10.17221/246-agricecon.
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This paper analyses the resource-productivity, technical efficiency (TE) and allocative efficiency of rain fed farmers in Nigeria. The results of the parameters that enter the production function shows that herbicide has the highest elasticities, then seeds, followed by fertilizer and land while labour has the least contribution to output. Also, the result for the allocative efficiency based on the computed <i>MVP<sub>x</sub></i> = <i>P<sub>x</sub></i> show that none of the respondents optimally allocated the inputs. However, a greater number of the respondents were found to underutilized variables like land, seeds, fertilizer and herbicide (<i>MVP<sub>x</sub></i> < <i>P<sub>x</sub></i>) while a greater number of the farmers over utilized labour (<i>MVP<sub>x</sub></i> > <i>P<sub>x</sub></i>). But in both cases, it was revealed that the use of more labour decreased the rice production from the study faster than any of the selected variables. The mean TE index was found to be 0.75. This suggests that 0.25 of rice yield is forgone due to inefficiency. The significant gamma (γ) value of 0.873 establishes the fact that a high level of technical inefficiency exists among the sampled farmers. Extension contact and access to credit are found to be significant determinants of TE among the farmers. Hence, agricultural policy makers in Nigeria should focus on how farmers could follow appropriate farm practices in the course of technology adoption to prevent under utilization of farm inputs via the intensification of extension activities in the country and accessibility to credit by farmers should be given more priority. Pursuing these will raise the productivity and efficiency of rice production in the country in the long run.
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Ismail, Suhaiza, Julia Mohd Said, and Husniyati Mohd Amin. "Assessing the Efficiency of Local Government in Malaysia." IPN Journal of Research and Practice in Public Sector Accounting and Management 10, no. 01 (December 18, 2020): 1–23. http://dx.doi.org/10.58458/ipnj.v10.01.01.0061.
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The objective of this paper is to assess the level of efficiency of local government in Malaysia. Using data envelopment analysis (DEA), the research provides evidence on the efficiency of Malaysian local governments in terms of technical (TE), pure (PTE) and scale efficiency (SE). Secondary data obtained from financial statements of 35 local governments over a period of seven years are used. DEA is performed using three inputs (tax revenues, fees and charges, subsidies from central government) and four outputs (net book value of land and buildings, net book value of motor vehicles, net book value of equipment and fittings, cost of goods and services). The results show that most Malaysian local governments recorded high technical efficiency (TE), pure technical efficiency (PTE) and scale efficiency (SE) with above 0.90 mean scores. Keywords: Local Government, Efficiency, Malaysia, Data Envelopment Analysis
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Khan, Farhat Ullah, Aman Ullah Khan, and Siraj -Ud- Din. "The Nexus of Efficiency and Profitability: A Case Study of Private Commercial Banks of Pakistan." Global Social Sciences Review IV, no. IV (December 30, 2019): 434–50. http://dx.doi.org/10.31703/gssr.2019(iv-iv).54.
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The study aimed at exploring the relationship between efficiency and profitability of private commercial banks operating in Pakistan. The efficiency represented by technical efficiency has been assessed by non-parametric data envelopment analysis approach while profitability indicated by return on assets has been computed through conventional ratio analysis for period 2009 to 2013. The analysis revealed that technical efficiency declined during the study period and remained at 89%. HMB was identified as the top-performing bank in technical efficiency while MCB remained highly profitable. Banks were then grouped based on TE and ROA. MBL, UBL, DIB, SCB, BAH, HBL and HMB observed as top-performing banks based on TE and ROA. These banks are considered a role model for other inefficient and less profitable banks. Whereas, other banks were grouped as weak, based on below-average ROA and TE scores. These banks can adopt distinct product mix or business strategies to become profitable in future.
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Qu, Ruopin, Yongchang Wu, Jing Chen, Glyn D. Jones, Wenjing Li, Shan Jin, Qian Chang, et al. "Effects of Agricultural Cooperative Society on Farmers’ Technical Efficiency: Evidence from Stochastic Frontier Analysis." Sustainability 12, no. 19 (October 5, 2020): 8194. http://dx.doi.org/10.3390/su12198194.
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The impact of agricultural cooperatives on apple farmers’ technical efficiency (TE) in China was examined. The cooperatives were divided into two groups: a collective marketing group for farmers and an equivalent non-marketing group that did not provide a marketing service, although other functions remained the same. Using the propensity score matching (PSM) procedure and stochastic production frontier (SPF) modelling, cooperatives’ key functions that potentially increase farmers’ TE can be identified. The results indicate that membership of either group is positively related to yield. However, cooperatives that were not engaged in marketing achieved higher TE than non-members. This suggests that policy makers should encourage cooperatives to focus on activities that do not include direct marketing to increase TE in apple production in China.
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Zhong, Min, Yuchun Zhu, Qihui Chen, Tianjun Liu, and Qihua Cai. "Does household engagement in concurrent business affect the farm size-technical efficiency relationship in grain production?" China Agricultural Economic Review 11, no. 1 (February 4, 2019): 125–42. http://dx.doi.org/10.1108/caer-11-2016-0179.
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Purpose The purpose of this paper is to examine how households’ engagement in concurrent business (CB), which is measured by the contribution of off-farm income to household income, affects the farm size–technical efficiency (TE) relationship in Northern China. Design/methodology/approach This paper applies a stochastic frontier analysis method to analyze data on 1,006 rural households collected from four major wheat-producing provinces in Northern China, adopting a translog specification for the underlying production function. Findings The analysis yields three findings. First, the farm size–TE relationship is inverted U-shaped for all CB engagement levels higher than 5 percent, and the most technically efficient farm size increases with the level of household CB engagement. Second, how TE varies with the level of CB engagement depends on farm size: an inverted-U relationship for relatively small farms (<10μ), a positive relationship for middle-size farms (10–20μ), and a negative relationship for large farms (>20μ). Finally, the overall TE score, 0.88, suggests that wheat output can be increased by 12 percent in Northern China if technical inefficiency were eliminated. Originality/value Unlike most previous studies that examine the impacts of farm size and households’ off-farm business involvement separately, this paper examines how these two factors interact with each other.
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Ndubueze-Ogaraku, Mercy Ebere, and Anil Graves. "Measuring Technical Efficiency of the Smallholder Crop Farms Using Stochastic Production Frontier Approach." Asia-Pacific Journal of Rural Development 31, no. 2 (December 2021): 234–48. http://dx.doi.org/10.1177/10185291211065222.
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Agricultural productivity in Africa is the lowest in the world with many households not being able to feed themselves. In Africa, women play a major role in agriculture sector constituting about 70–80 per cent of the labour force there. Regrettably, their farm productivity is relatively low mainly due to their inefficient use of farm inputs, which has a serious implication for their socio-economic condition as well as health and nutrition status. With this backdrop in mind, the study investigated the technical efficiency (TE) of the female crop farmers in Niger Delta, Nigeria. Stochastic production frontier approach and ANOVA models were applied to analyse the primary data collected on the 216 female farmers randomly selected from 18 communities of the 3 states in the Delta. It has been found that the farm size and the quantity of labour positively influence TE of these farmers. However, farmer’s age shows a negative sign implying a decrease in technical inefficiency in age whereas the years of schooling shows a positive sign implying an increase in inefficiency with schooling thereby a resulting decrease in TE with schooling. Farm efficiency level in Delta and Akwa Ibom States was not significantly different. However, TE level in both Delta and Akwa Ibom States was significantly different from Rivers State. Since, the age of farmers showed positive influence on TE, farmers should form group and organise regular meetings to enable share knowledge and experiences on the efficient use of farm resources in the Niger Delta Region, Nigeria.
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Issahaku, Gazali, and Awudu Abdulai. "Sustainable Land Management Practices and Technical and Environmental Efficiency among Smallholder Farmers in Ghana." Journal of Agricultural and Applied Economics 52, no. 1 (October 24, 2019): 96–116. http://dx.doi.org/10.1017/aae.2019.34.
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AbstractThe study examines the effects of adoption of sustainable land management practices on farm households’ technical efficiency (TE) and environmental efficiency, using household-level data from Ghana. We employ selectivity biased-corrected stochastic production frontier to account for potential bias from both observed and unobserved factors. The empirical results show that adopters exhibit higher levels of TE and output, compared with the nonadopters. However, the results reveal that adopters are found to use excess herbicides that could have adverse environmental consequences. The results also reveal that extension services and access to credit positively and significantly correlate with TE.
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Sayin, Betul, and Ibrahim Yilmaz. "Comparing the Relative Efficiency of Irrigation Unions in Antalya, Turkey: A Data Envelopment Analysis." Water Economics and Policy 01, no. 01 (March 2015): 1450005. http://dx.doi.org/10.1142/s2382624x14500052.
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This study was conducted to measure the efficiency level of irrigation unions in the Antalya Province of Turkey. An input-oriented data envelopment model, a linear programming procedure, was used to measure the relative efficiency scores of irrigation unions. Research results showed that technical efficiency (TE) scores varied between 0.39 and 1.00 and the mean TE score was 0.85. Based on the results of decomposition, the pure TE and scale efficiency were 0.81 and 0.95, respectively and the main source of inefficiency in the research area was pure TE. 47% of the examined unions had constant returns to scale, while that of decreasing returns to scale was 53%. The study also revealed that the irrigation area sustainability ratio and the ratio of energy cost in total expenses of technically efficient unions were lower than that of inefficient ones. The study suggested that restoration and modernization efforts should be initiated in order to enhance the efficiency level in the long term. Designing training for the managers and workers of the irrigation unions, adjusting the unions based on the fluctuation in energy market and declining the leakage of the irrigation system may be beneficial to increase the TE.
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Lei, Hong Jun, Qiao Li Zhang, Chang Jia Li, Bei Dou Xi, and Xun Feng Xia. "Factor Analysis on the Industrial Environmental Efficiency and Energy Utilization Efficiency of China by DEA Method." Applied Mechanics and Materials 209-211 (October 2012): 1620–26. http://dx.doi.org/10.4028/www.scientific.net/amm.209-211.1620.
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Faced with two big stresses of energy shortage and environmental pollutants, China should improve its energy utilization efficiency. Based on the data of China Statistical Yearbook and China Environmental Statistics Yearbook, the pollutants discharge and energy utilization efficiency, including technical efficiency (TE), pure technical efficiency (PTE), scale efficiency (SE) and returns to scale (RTS) of China’s industry and its sub-sectors were analyzed by constant returns to scale model (CRS) and variable returns to scale model (VRS) of non-parametric data envelopment analysis (DEA) method. Results showed that: (1) The RTS of China's total industrial environmental efficiency and energy utilization efficiency were all in "irs" state, indicating that it was beneficial to expand the entire industrial scale. (2) The TE of total industrial energy utilization efficiency was about 0.80, the minimum TE was 0.018 of production and distribution of gas sector. (3) The total industrial environmental efficiency was about 0.77, the two sectors with high pollutants discharges were mining of other ores and manufacture of paper and paper products, and TE were 0.065 and 0.067, respectively. Mostly industrial sub-sectors should improve their technologies and adjust its scales except for extraction of petroleum and natural gas, manufacture of tobacco, printing, reproduction of recording media and so on. (4) Mining of other ores, manufacture of tobacco, manufacture of communication equipment, computers and other electronic equipment, manufacture of measuring, instruments and machinery for cultural activity and office work and production and distribution of water were in high energy utilization efficiency while in low environmental efficiency and steady RTS. So these sectors should improve the technologies to achieve DEA effective. (5) Scale expanding, technology advancement, energy use pattern improvement and industry structure adjustment were suggested for energy-saving industry according to the TE, PTE, SE and RTS.
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Bajracharya, Mahima, and Mahesh Sapkota. "Technical efficiency of certified maize seed in Palpa district, Nepal: A stochastic frontier production approach." Journal of Maize Research and Development 3, no. 1 (January 5, 2018): 45–52. http://dx.doi.org/10.3126/jmrd.v3i1.18920.
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The cereal crop, maize is regarded as staple food mainly in hill areas of Nepal. Seed is one of the vital input which determines the production and yield of any crop. Farmers are found using the required inputs in haphazard way which had increased the cost of production and inefficiency of resources used. The study on seed sector is limited. For such a backdrop, this study was aimed to assess the level of technical efficiency (TE) of certified maize seed production. The total of 164 certified seed producer were interviewed in June, 2016 using simple random sampling technique in Palpa district of Nepal. The result revealed that increase in amount of seed and labor by one percent would increase the yield of certified maize seed by 0.29 and 0.34 percent respectively. The TE was estimated using stochastic production frontier model in Stata software. The average TE was found 70 percent which revealed the scope of increasing TE by 30 percent using the existing available resources. There were about 29 percent farmers who had TE of ≥0.7-0.8 followed by 27.44 percent at ≥0.8-0.9. Government and other stakeholders should prioritize to provide technical knowledge via training and increase the visit of extension worker to increase TE of certified maize seed producer in the district.
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Krasachat, Wirat. "The Effect of Good Agricultural Practices on the Technical Efficiency of Chili Production in Thailand." Sustainability 15, no. 1 (January 3, 2023): 866. http://dx.doi.org/10.3390/su15010866.
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While recognition of the positive influence of good agricultural practices (GAP) on reducing negative externalities due to conventional farming and providing more export opportunities is growing, there is some doubt about the effects of GAP on the economic performance of chili farms. In this regard, this study’s principal objectives are to assess the impact of GAP and to examine farm-specific and environmental factors regarding the technical efficiency (TE) of chili farms in Thailand. This study employed a stochastic meta-frontier input distance function to measure and explore the effects of farm-specific and environmental factors on TE using 2018 farm-level survey data from Thai chili farms. The sample of 100 farms includes GAP and non-GAP farms. The empirical results highlight three critical findings. First, there is confirmation that GAP positively influence the TE of chili farms. Second, family labor intensity and small farm size also positively impact the TE of farms. At the same time, completion of a technical training course positively affects the TE of non-GAP farms only. Finally, education, experience, training courses, and crop diversification negatively affect the TE of GAP farms only. Thus, policymakers need to focus on GAP adoption and farm-specific factors to promote the sustainable development of Thai chili farms.
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Nellutla, R., R. Ashok, M. Ramesh, and V. V. Haragopal. "Technical Efficiency of Universities in Telangana State through Data Envelopment Analysis (DEA) Approach." European Journal of Mathematics and Statistics 2, no. 6 (December 13, 2021): 30–39. http://dx.doi.org/10.24018/ejmath.2021.2.6.62.
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In this present research paper we analyze the universities data by CCR, BCC models through Data Envelopment Analysis (DEA) approach for the State of Telangana. To know the Performance of student’s university wise in state of Telangana. University wise Performances is presented along with technical efficiency, Pure Technical Efficiency, Scale Efficiency, CRS, VRS, Reference set and Peers. Measuring the Technical Efficiency (TE) and Pure Technical Efficiency (PTE) of the universities by CCR, BCC Model through DEA approach.
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Adams, Abdulai, Bedru Balana, and Nicole Lefore. "Efficiency of Small-scale Irrigation Farmers in Northern Ghana: A Data Envelopment Analysis Approach." Margin: The Journal of Applied Economic Research 14, no. 3 (July 31, 2020): 332–52. http://dx.doi.org/10.1177/0973801020919840.
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This study measures and explains technical efficiency (TE), economic efficiency and allocative efficiency of 110 small-scale vegetable farmers practicing various irrigation technologies for increased productivity. We employed the two-stage approach to estimate efficiency scores under constant returns to scale (CRS) and variable returns to scale (VRS) specifications. First, using a linear programming method, efficiency scores of the irrigated vegetable farmers were measured using the data envelopment analysis approach. The results show that about 27.3 per cent of the farmers currently operate on the production possibility frontier and are technically efficient, while 3.6 per cent were found to be both economically and allocatively efficient. The mean TE score for CRS was 50.6 per cent, compared with 78.1 per cent under the VRS. A Tobit regression at the second-stage analysis revealed that gender, experience, health and credit utilization have significant effects on TE. These results are valuable for stakeholders interested in promoting efficiency in smallholder irrigated production. JEL Classification: C14, C61, D24, D61, Q12
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Bogari, Adel. "Corporate Governance Features and Efficiency: Evidence from the Saudi Arabian Banks." International Journal of Economics and Finance 12, no. 1 (December 20, 2019): 43. http://dx.doi.org/10.5539/ijef.v12n1p43.
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The aim of this article is to examine the effect of the Corporate Governance features as measured by the Independence of the board of directors, the board size and the ownership structure (private ownership/State ownership and foreign ownership) on the banking efficiency of Saudi Arabian banks. A data set of the twelve biggest banks for the period 2000 to 2017 is used. As for banking efficiency scores, the methodology is based on the Data Envelopment Analysis (DEA). It allows for Technical Efficiency, Pure Technical Efficiency and Scale Efficiency scores. The results of this study point to the significant role of The Independence (INDEP) variable supported by a positive and significant effect on efficiency in all regressions, indicating a positive relationship with the Technical Efficiency (TE) and the Pure Technical Efficiency (PTE). In the contrary, the independence of the board directors has a negative and significant effect on scale efficiency (SE). According to Board Size variable, results related to this later reveal a negative and a significant effect on technical efficiency (TE), Pure Technical Efficiency (PTE) and Scale Efficiency (SE) in all regressions. Finally, as for the ownership structure variables, results confirm that Private Ownership (OWEN-P) provides positive and significant effects on both the Technical and the Scale Efficiency. This effect seems to be turn to be negative and significant when it is correlated to the Pure Technical Efficiency. State Ownership (OWEN-S) impacts positively and significantly the Technical Efficiency, the Pure Technical Efficiency and Scale Efficiency separately. As for the Foreign Ownership (OWEN-F) variable, except for the Pure Technical Efficiency (PTE), we note a positive and significant effect on the Technical and Scale Efficiency. This study implies better Corporate Governance practices should be supported to improve the overall efficiency and its components. This includes in particular, the Board Size and the Ownership structure variables.
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Martey, Edward, Alexander N. Wiredu, Prince M. Etwire, and John K. M. Kuwornu. "The impact of credit on the technical efficiency of maize-producing households in Northern Ghana." Agricultural Finance Review 79, no. 3 (June 3, 2019): 304–22. http://dx.doi.org/10.1108/afr-05-2018-0041.
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Purpose Production credit is essential for enhancing the technical efficiency (TE) and the welfare of smallholder farmers in Africa. The purpose of this paper is to examine the impact of credit on smallholders’ TE using cross-sectional data from 223 maize-producing households in Northern Ghana. Design/methodology/approach Due to the exogenous assignment of credit and assumption of homogeneity in farm technologies, the propensity score matching (PSM) analysis was used to compare the average difference in TE between farmers that had received credit and those that had not. Findings The results revealed that production credit impacts positively on smallholder farmers’ TE. Access to production credit is significantly influenced by access to markets and extension services, distance to market, asset index and land fragmentation. The provision of credit enhances the timely purchase and efficient allocation of farming inputs to produce the maximum possible output. Per capita income and land fragmentation also play important roles in reducing smallholders’ TE. Practical implications To increase efficiency gains, credit programs for agricultural interventions should target resource-poor smallholder farmers. The efficiency gains can be sustained through stronger partnerships with financial institutions. Policy interventions aimed at increasing smallholder farmers’ access to production credit (e.g. through the creation of a conducive investment environment that lowers the lending rate and collateral requirements) must be vigorously pursued. Originality/value To the best of authors’ knowledge, this is one of the only recent studies to examine the impact of credit on the TE of farming households by applying the translog stochastic frontier production function and the PSM approaches.
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Geffersa, Abebayehu G., Frank W. Agbola, and Amir Mahmood. "Technical efficiency in crop production across agro-ecological zones in Ethiopia: A meta-analysis of frontier studies." Outlook on Agriculture 48, no. 1 (February 19, 2019): 5–15. http://dx.doi.org/10.1177/0030727019830416.
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This article investigates whether study-specific attributes account for systematic variations in reported technical efficiency (TE) scores in crop production. We conducted a meta-regression analysis using mean TE (MTE) estimates from primary frontier studies of Ethiopian crop sub-sector over the period 1991–2015. The estimated MTE of 66% indicates a capacity to increase efficiency in crop production. Results from a fractional outcome regression model revealed that reported efficiency estimates vary substantially across studies and agro-ecologies. We found that reported efficiency estimates are influenced by the frontier methodology used, the functional form assumed, assumptions about technology representation, the estimated dimension of the model, output aggregation and the publication outlet. We show that reported efficiency estimates are sensitive to variations in agro-ecologies. We argue for the need to consider differences in agro-ecologies when estimating TE because failure to account for this may bias efficiency estimates.
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Liu, Jianxu, Changrui Dong, Shutong Liu, Sanzidur Rahman, and Songsak Sriboonchitta. "Sources of Total-Factor Productivity and Efficiency Changes in China’s Agriculture." Agriculture 10, no. 7 (July 8, 2020): 279. http://dx.doi.org/10.3390/agriculture10070279.
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The core of agricultural development depends on agricultural production efficiency improvement, and total-factor productivity growth is its significant embodiment. Hence, it is essential to address the question of “how to improve China’s agricultural productivity and efficiency in order to achieve growth and sustainability of agriculture in the future”. This paper estimates indices of China’s agricultural technical efficiency (TE) scores, total-factor productivity (TFP), and its two components, technological change/progress (TC) and technical efficiency change (EC), using provincial-level panel data of 30 provinces from 2002 to 2017 by applying a stochastic frontier approach (SFA). The paper also identifies determinants of TE, TC, and TFP using selected indicators from four hierarchical levels of the economy, i.e., farm level, production environment level, provincial level, and the state level, by applying a system-GMM method. Results reveal that agricultural labor, machinery, agricultural plastic film, and pesticides are the significant drivers of agricultural productivity, with no significant role of land area under cultivation. Constant returns to scale exist in China’s agriculture. The agricultural technical efficiency level fluctuated between 80% and 91% with a stable trend and a slight decline in later years, while TFP improved consistently over time, mainly driven by technological progress. Among the determinants, government investment in agricultural development projects significantly drives TC and TE, while the experienced labor force significantly increases TE. The disaster rate significantly reduces TE but promotes TC and TFP. The literacy rate significantly improves TC and TFP. However, government expenditures in “agriculture, forestry, and water” significantly reduce TE, TC, and TFP. Policy recommendations include (1) increased levels of mechanization and agriculture film use while avoiding an increase in pesticide use, (2) a continued increase in government expenditure in agricultural development projects, R&D to improve technological progress, and diffusion of modern agricultural technologies, and (3) investment in education targeted at the farming population in order to continue the growth in the productivity and sustainability of China’s agriculture.
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Guan, Hongjun, Yu Wang, Liye Dong, and Aiwu Zhao. "Efficiency Decomposition Analysis of the Marine Ship Industry Chain Based on Three-Stage Super-Efficiency SBM Model—Evidence from Chinese A-Share-Listed Companies." Sustainability 14, no. 19 (September 26, 2022): 12155. http://dx.doi.org/10.3390/su141912155.
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Based on the micro-data of 79 listed companies in the Chinese marine ship industry chain from 2015 to 2019, this paper calculates the comprehensive technical efficiency (TE), pure technical efficiency (PTE), and scale efficiency (SE) of the upstream, midstream, and downstream of China’s marine ship industry chain by using a three-stage super-efficiency slacks-based model (SBM), and further analyzes the weak links in industrial chain efficiency and their influencing factors. It is shown that (i) the TE and PTE of the upstream, midstream, and downstream of China’s marine ship industry chain are in a “V”-shaped distribution, high at both ends and low in the middle, but that the SE is ranked as follows: upstream > midstream > downstream. In addition, the PTE is the main factor which hinders the improvement of TE in the industrial chain. (ii) The environmental variables have significant impacts on industrial chain efficiency. When the influences of environmental variables and random error terms are excluded, the industrial chain efficiency changes significantly. The values of SE and TE decrease significantly, and the distribution characteristic of TE changes. However, the PTE is still in a “V”-shaped distribution and appears to be the main driving force for the progress of TE. (iii) China’s marine ship industry chain has obvious weak links in terms of efficiency, and the midstream and downstream areas need to focus on development. Each link of the industry chain has high coupling and low coordination, and they are all closely related to each other, but the coordination ability is insufficient. The industrial chain in terms of efficiency and coordinated development can still be improved.
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Ajagbe, F. A., J. O. Ajetomobi, and D. V. Dlamini. "INVESTMENT CLIMATE AND RELATIVE TECHNICAL EFFICIENCY OF FOOD INDUSTRIES IN NIGERIA." International Journal of Research -GRANTHAALAYAH 6, no. 1 (January 31, 2018): 284–96. http://dx.doi.org/10.29121/granthaalayah.v6.i1.2018.1616.
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This study examined the influence of investment climate on technical efficiencies of industries in Nigeria. The study was conducted in two phases namely (i) an estimation of the technical efficiency (TE) was carried out and, (ii) differences in TE across firms were statistically related to indicators of investment climate and firm-level characteristics. The analyses made use of 2009 World Bank Enterprise survey data on Nigeria. The results showed that food industry was more labour intensive and less efficient than other industries in Nigeria. The importance of scale, export and firm ownership was evident from the significance of the variables in all the industries. The results point to the fact that firms in Nigeria can improve their productivity by learning from customers and by facing international competition. Investment climate difficulties had less effect on food industries than others. The sector could be a good starting point in the nation’s industrialization policy drive if available resources can be utilized optimally.
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Chen, Dongshi, Hongdong Guo, Qianqian Zhang, and Songqing Jin. "E-commerce Adoption and Technical Efficiency of Wheat Production in China." Sustainability 14, no. 3 (January 21, 2022): 1197. http://dx.doi.org/10.3390/su14031197.
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Improving technical efficiency (TE) is crucial for the sustainable growth of smallholder agriculture in developing countries. While there has been a large literature investigating the determinants of smallholders’ agricultural technical efficiency, little is known about the effect of e-commerce on agriculture and crop production efficiency despite the growing importance of rural e-commerce in developing countries. This study, therefore, bridges the research gap by examining the impact of e-commerce adoption on TE using household survey data of wheat farmers in China. We employ the combination of propensity score matching (PSM) and a selectivity-corrected stochastic production frontier model to address the possible selection biases stemming from both observable and unobservable factors. We found that e-commerce adoption would lead to a 2.75 per cent increase in the technical efficiency of wheat production. Our study also complements the existing research of rural e-commerce, which mainly focuses on the benefits of e-commerce from the perspective of market opportunity and farmers’ welfare.
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Manello, Alessandro, and Giuseppe Giulio Calabrese. "Firm’s survival, rating and efficiency: new empirical evidence." Industrial Management & Data Systems 117, no. 6 (July 10, 2017): 1185–200. http://dx.doi.org/10.1108/imds-03-2016-0102.
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Purpose The purpose of this paper is to investigate the determinants of firms’ survival during crisis in the Italian automotive value chain. Design/methodology/approach The authors propose a survival analysis, based on a dichotomic model, in which supply chain features, technical efficiency (TE) and ratings are included as explanatory variables with other controls. Findings TE and financial health positively influence survival. Some supply chain variables are significant such as direct supply, geographical location and outsourcing level, whereas the proximity to the national carmaker is insignificant. Research limitations/implications The main limitation of the study is the lack of qualitative data related to supply management practice in the automotive industry. Originality/value The study combine supply chain aspects with firms’ survival, TE and financial ratings.
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Hoàng Thanh, Hiền, and Linh Huỳnh Thị Diệu. "Technical Efficiency Analysis of State-owned Enterprises using Popular Estimation Methods for Stochastic Frontier Models." JOURNAL OF ASIAN BUSINESS AND ECONOMIC STUDIES 33, no. 8 (August 1, 2022): 22–34. http://dx.doi.org/10.24311/jabes/2022.33.08.02.
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Technical efficiency (TE) is an important indicator to examine the performance of an enterprise. This paper applies the most popular stochastic frontier (SF) production functions to estimate the TE index for state-owned enterprises (SOEs) over the period 2010–2019. The results show that mean efficiency scores increased over the period 2010–2015, then decreased gradually in the period 2016–2019. Moreover, the analysis results by industry sectors also indicate that chemical manufacturing industry has the highest mean efficiency scores. Meanwhile, enterprises in the automotive and equipment manufacturing industries have the lowest technical efficiency, and the difference between these two sectors is up to 10%. The paper also makes some recommendations to policy makers to improve production efficiency in these firms.
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Gatimbu, Karambu Kiende, and Maurice Juma Ogada. "Technical efficiency of the small-scale tea processors in Kenya: a stochastic metafrontier approach." African Journal of Economic and Management Studies 11, no. 4 (July 21, 2020): 653–67. http://dx.doi.org/10.1108/ajems-10-2018-0303.
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PurposeImportance of small-scale tea producers in Kenya is not in doubt. They account for 60% of all tea produced in the country, serve about 560,000 tea farmers and employ about 10,000 people directly. However, the subsector faces a myriad of challenges ranging from declining yields and rising costs of production to fluctuating world prices. Thus, it is imperative that the producers entrench efficiency as a critical success factor. This makes it important for the producers to understand their relative performances to inform decisions on improving input use. Congruent with this motivation, this study sought to analyze the technical efficiency (TE) of the country's small-scale tea processors within and across the regions under the management of Kenya Tea Development Authority.Design/methodology/approachTo allow comparison across regions, this study adopted a stochastic metafrontier approach and to be able to decompose inefficiency into persistent and time-varying components, the study adopted regression analysis.FindingsResults showed that the small-scale tea processors operated at a mean TE level of 76% with a technology gap ratio (TGR) of 97%. This implies that the prevailing level of output could be maintained even if inputs were reduced by 24%. Persistent inefficiency could be reduced possibly through rationalization of structural and managerial components of the firms.Research limitations/implicationsWhile it is important to adopt yield-enhancing technologies and innovation, small-scale tea processors have the latitude to improve their earnings through enhanced TE. They can save up to 24% of their input and be able to pay farmers better even with the fluctuating global tea prices. Enhancing TE should be given priority because it is within the control of the individual firms.Originality/valueThis is a pioneering study in panel data analysis of TE of small-scale tea processors within and across regions in Kenya.
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Angón, Elena, Tomás Bragulat, Antón García, Alberto Giorgis, and José Perea. "Key factors affecting the technical efficiency of bee farms in the province of La Pampa (Argentina): A two-stage DEA approach." Revista de la Facultad de Ciencias Agrarias UNCuyo 53, no. 1 (July 7, 2021): 150–63. http://dx.doi.org/10.48162/rev.39.015.
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This paper analyzes how decision-making, management capacity and technology adoption by beekeepers, affect the technical efficiency (TE) of Argentinean beekeeping through the case study of the province of La Pampa (Argentina). The assessment of TE is currently receiving ever-growing attention as an indicator of sustainability and usage of sufficient natural resources in beekeeping activities. This study aimed to identify the key factors affecting the technical efficiency of bee farms in the province of La Pampa. The study included a sample of 40 bee farms and estimated their TE score through an input-oriented Data Envelopment Analysis (DEA) model. In a second stage, Tobit regression was determined to evaluate the technical inefficiency determinants. This paper found that most beekeeping production units have low TE levels. Only 25 % of bee farms produce either at or close to the frontier. The Tobit model revealed that variables such as marital status, educational level, primary family income, source information usage, planning and health area, affect positively on pure technical efficiency. These results are considered to be of great interest for structured beekeeping systems on small-scale and family farms, as well as for political decision-makers, regarding a public program in apiculture. Highlights: Argentina is the leading country in America, exporting honey worldwide. DEA approach and Tobit model based on a two-stage analysis is a useful tool when evaluating livestock production systems. Bee farmers in La Pampa (Argentina) are operating below the production frontier, which indicates there is still scope for improvement. Variables such as marital status, educational level, primary family income, source information usage, planning and health area, affect positively on technical efficiency. Beekeepers should be encouraged by the government to improve their efficiency through training programs to ease decision-making and management, therefore enhancing productivity.
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Sapkota, Mahesh, and Niraj Prakash Joshi. "Factors Associated with the Technical Efficiency of Maize Seed Production in the Mid-Hills of Nepal: Empirical Analysis." International Journal of Agronomy 2021 (February 24, 2021): 1–8. http://dx.doi.org/10.1155/2021/5542024.
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Maize is the second most important staple crop in Nepal. Its demand is rapidly increasing due to a growth in the poultry sector. The national maize yield is low, leading to insufficient domestic production and thereby increasing imports. Maize seed is considered as one of the crucial inputs in achieving the targeted yield growth, but usually is in short supply during the cropping season. Farmers are involved in maize seed production, which eases its supply. Thus, understanding the efficiency of maize seed production will have a direct impact on the efficiency of the country’s maize production. This paper aimed to assess the technical efficiency (TE) of maize seed production and the major factors affecting TE. Semistructured questionnaire survey was administered in June 2016 to 182 maize seed farmers selected randomly from a total of 260 maize seed growers in Palpa District, a leading maize seed producing district in the mid-hills of Nepal. TE is estimated based on the stochastic frontier production model, and the factors affecting TE are assessed using the Tobit model. TE ranged from 0.25 to 0.92 with an average of 0.71. This revealed the scope of increasing TE by 29%. TE in the study area is largely affected by the age and schooling year of household heads. Similarly, the experience of maize seed production, livestock holding, the share of maize seed area, seed source, and access to extension services affect TE. Hence, a focus on motivating experienced educated maize seed growers to expand the maize seed production area supplemented by a better seed source and extension services would contribute to improving TE.
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Mithiya, Debasis, Simanti Bandyopadhyay, and Kumarjit Mandal. "Measuring Technical Efficiency and Returns to Scale in Indian Agriculture Using Panel Data: A Case Study of West Bengal." Applied Economics and Finance 6, no. 6 (September 24, 2019): 1. http://dx.doi.org/10.11114/aef.v6i6.4332.
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The study investigates farm level technical efficiency (TE) and its determinants in the state of West Bengal in India. A stochastic production frontier model has been applied for determining technical efficiency by using panel data on 17 agricultural production units over a period of 23 years. Maximum-likelihood estimates of the Cobb-Douglas stochastic frontier production function in a time-variant truncated normal distribution is appropriate for the measurement of technical efficiency of West Bengal agriculture in India. The estimated variance ratio indicates that 48.90 percent of the differences between the observed and the estimated output is caused by differences in farms’ technical inefficiencies. However, the remaining variation is due to factors beyond farmers’ control. The study shows that the agricultural farms in West Bengal exhibit increasing returns to scale in production. The study finds that farmers’ education and agricultural extension are important determinants of technical efficiency. Other prominent determinants that have a significant contribution are farm size, crop diversification, number of available agricultural markets, the proportion of small landholders and input intensity. All these determinants, excluding the proportion of small landholders, have a largely positive impact on technical efficiency. The maximum-likelihood estimation (MLE) and principal component analysis (PCA) are applied to determine the effects of determinants on TE. Both methods give similar results.