An empirical investigation into technical efficiency of commercial banks in Bangladesh using stochastic frontier approach

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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Assessment of Technical Efficiency of Layer Production in Mampong Municipality: Stochastic Frontier Approach

Current Research in Agricultural Sciences ◽

10.18488/journal.68.2019.61.20.28 ◽

2019 ◽

Vol 6 (1) ◽

pp. 20-28 ◽

Cited By ~ 1

Author(s):

Yenibehit N ◽

Murshed M ◽

Islam M. J

Keyword(s):

Technical Efficiency ◽

Stochastic Frontier ◽

Stochastic Frontier Approach

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Efficacité Technique des Petits Producteurs du Maïs au Bénin

European Scientific Journal ESJ ◽

10.19044/esj.2018.v14n19p109 ◽

2018 ◽

Vol 14 (19) ◽

pp. 109

Author(s):

Fawaz A. Adéchinan Aminou

Keyword(s):

Technical Efficiency ◽

Stochastic Frontier ◽

Farm Households ◽

Farm Income ◽

Selling Price ◽

Stochastic Frontier Approach ◽

Access To Credit ◽

Seed Distribution ◽

Production Area ◽

Low Efficiency

This study examines how small maize farmers allocate their production inputs and identifies the elements that characterize efficient farms. A Cobb Douglas stochastic frontier approach is used to estimate farm level technical efficiency of maize farmers. Average technical efficiency of sampled farms was estimated to be 65.40% with a minimum of 20.47% and a maximum of 93.46%. The study further showed that the farmers’ sex, the use of improved seeds, the maize selling price, the non-farm income, the contact with an NGO, the access to credit and the production area played a positive and significant role in improving technical efficiency. The results imply that government can save resources used in extension services and focus on its improved seed distribution policy. Also, imperfections in the labor/capital market contribute to the low efficiency of farm households.

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Technical efficiency and input-driven growth in Indian engineering goods industry during post-reform period: stochastic frontier approach

Journal of Economic and Administrative Sciences ◽

10.1108/jeas-08-2020-0145 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Vasim Akram ◽

Asheref Illiyan

Keyword(s):

Technical Efficiency ◽

High Performance ◽

Stochastic Frontier ◽

Capacity Utilization ◽

Output Growth ◽

Infrastructure Development ◽

Efficiency Change ◽

Stochastic Frontier Approach ◽

Content Type ◽

Reform Period

PurposeThe purpose of this study is to examine the performance of Indian engineering goods industry by measuring the technical efficiency and input-driven growth.Design/methodology/approachThe study used the panel data of six firms from the period of 1991–92 to 2014–15 compiled from Annual Survey of Industries (ASI), India and output-oriented econometric techniques such as pooled OLS model, and stochastic frontier approach has been applied to measure the technical efficiency.FindingsThe results suggest that the prime sources of high performance in engineering goods industry, which has recorded 8.8% output growth, are primarily contributed by inputs driven growth (8.2%) during the post-reform period, while the effect of technological change is minimal (0.1%) and technical efficiency change is negative (−0.2%). It was due to sluggishness, outdated technology and underutilization of resources in Indian economy.Research limitations/implicationsThis research paper is limited to engineering goods industry based on concorded macro data. The recommendations are that India should pursue policies and programs which may focus on technology acquisition, skill enhancement of labor, better capacity utilization, R&D and infrastructure development that may augment the technical change and technical efficiency change of the sector.Originality/valueThis research provides robust and significant estimates of technical efficiency and adds valuable insights to the existing literature by identifying the potential areas that improves the performance of Indian engineering goods industry.

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