Technical efficiency impact of microfinance on small scale resettled sugar cane farmers in Zimbabwe

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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Technical efficiency and its determinants in the Indian textile garments industry

Research Journal of Textile and Apparel ◽

10.1108/rjta-09-2020-0110 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Abdulla ◽

Shiv Kumar

Keyword(s):

Panel Data ◽

Technical Efficiency ◽

Textile Industry ◽

Small And Medium Enterprises ◽

Stochastic Frontier ◽

Efficiency Score ◽

Value Chains ◽

Small Scale ◽

Content Type ◽

Medium Enterprises

Purpose This paper aims to examine technical efficiency and its determinants in Indian textile garments industry in post-agreement on textiles and clothing regime and evaluate the technical efficiency among micro, small and medium enterprises (MSMEs) firms. Design/methodology/approach This study uses unbalanced panel data for the period 2005–2010 to 2015–2016. The stochastic frontier function is used to estimate technical efficiency and its determinants. Findings The results show that the overall ecosystem of textile garments’ value chains could be improved to enhance the technical efficiency thereof. The result also reveals that small-scale firms have the highest technical efficiency scores, and medium-scale firms have the least technical efficiency score among all the categories of MSMEs. Research limitations/implications The textile garments industry needs to define its innovation strategies, as these strategies lead to different results that can be achieved only through the management of resources dedicated to the generation and implementation of innovations. Practical implications This study has shown that to offset India’s cost disadvantage in the international markets, there is a need to develop an ecosystem of textile manufacturing and value chains, eliminate the inverted duty structure (where inputs are taxed at a higher rate than the final product) and switch over from shuttle looms toward shuttle-less looms. This would unleash the potential of textile and garments industry and make it globally competitive and technically efficient. Further, there will be an alignment with the ease of doing business with an appropriate mix of policy, technology, institution, infrastructure, information and services. Originality/value Using frontier production function takes stochastic context into account for the dynamic character of technical efficiency and its components. Most of the past studies have assessed technical efficiency at the aggregate level using three-digit National Industrial Classification (NIC) or four-digit NIC code. An analysis at higher levels of aggregation masks the variation in technical efficiency. This study used five-digit NIC data to measure the firm-specific technical efficiency of the textile industry. According to the authors’ knowledge, this study is the first of its kind in the Indian textile industry using stochastic frontier approach and panel data. Further, it also looks at the contribution of different determinants in technical efficiency to the firms.

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Estimating technical efficiency of small scale beef cattle fattening in the lake zone in Tanzania

Journal of Development and Agricultural Economics ◽

10.5897/jdae12.0436 ◽

2013 ◽

Vol 5 (5) ◽

pp. 197-207 ◽

Cited By ~ 6

Author(s):

N. Mlote

Keyword(s):

Beef Cattle ◽

Technical Efficiency ◽

Small Scale ◽

Lake Zone

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Effisiensi Produksi Industri Skala Kecil Batik Semarang: Pendekatan Fungsi Produksi Frontier Stokastik

Jurnal Manajemen Teori dan Terapan | Journal of Theory and Applied Management ◽

10.20473/jmtt.v4i1.2410 ◽

2011 ◽

Vol 4 (1) ◽

Author(s):

Ngatindriatun Ngatindriatun ◽

Hertiana Ikasari

Keyword(s):

Technical Efficiency ◽

Production Efficiency ◽

Stochastic Frontier ◽

Free Variable ◽

High Price ◽

Small Scale ◽

Central Java ◽

Stochastic Frontier Production Function ◽

Analysis Instrument ◽

Frontier Production Function

Batik is known since 17th century. In 2009, UNESCO took batik as the world heritage. Likewise, Batik Semarang. Batik Semarang is unpopular than other batik’s products on Central Java. Their productivity is on small scale and only for environment surroundings. The small productivity causes the high price on their product selling. The aims of this research are to estimate the function of production and technical efficiency of batik Semarang. Sample is 67 owners of small scale batik Semarang industry. Analysis instrument is Stochastic Frontier Production Function. The measuring of production efficiency are material, support material, labor force, instruments, kerosene, firewood, and large of trade location. The result shows that free variable is found significant and have an appropriate signal. Other result shows that technical efficiency of batik Semarang industry is 88, 9%

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Technical Efficiency and Small Scale Maize Producers in Mwanza Region: A Stochastic Frontier Analysis

Asian Journal of Agriculture and Food Sciences ◽

10.24203/ajafs.v9i3.6641 ◽

2021 ◽

Vol 9 (3) ◽

Author(s):

Mukole Kongolo

Keyword(s):

Technical Efficiency ◽

Best Practice ◽

Stochastic Frontier Analysis ◽

Stochastic Frontier ◽

Likelihood Estimation ◽

Estimation Procedure ◽

Farm Size ◽

Small Scale ◽

Maize Production ◽

Frontier Analysis

This study measured technical efficiency and its determinants in maize production by small-scale producers in Mwanza region, using a stochastic frontier production function approach. A randomly selected sample of participants in the two districts was used. The Maximum Likelihood estimation procedure was followed to obtain the determinants of technical efficiency and technical efficiency levels of small-scale maize producers. The minimum and maximum values of technical efficiency were between 20% and 91%, indicating that the least practices of specific producer operates at a minimum level of 20%, while the best practice producers operate at 91% technical efficiency level respectively. The summary results of the mean technical efficiency was 63%. The main determinants of technical efficiency were labour, farm size, producer’s experience, producer’s age, family size which were all positive and statistically significant. The findings suggest that the average efficiency of small-scale maize producers could be improved by 37% through better use of existing resources and technology. These findings highlight the need for action by government to assist small-scale maize producers improve efficiency.

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Determinants of technical efficiency in agriculture in new EU member states from Central and Eastern Europe

Acta Oeconomica ◽

10.1556/aoecon.64.2014.2.4 ◽

2014 ◽

Vol 64 (2) ◽

pp. 197-217 ◽

Cited By ~ 10

Author(s):

Štefan Bojnec ◽

Imre Fertő ◽

Attila Jámbor ◽

József Tóth

Keyword(s):

Technical Efficiency ◽

Rural Areas ◽

Rural Economy ◽

Large Scale ◽

Panel Data Analysis ◽

Farm Size ◽

Small Scale ◽

Member States ◽

Eu Member States ◽

New Eu Member States

Technical efficiency in agriculture of 10 new EU member states is analysed by Data Envelopment Analysis and econometric panel data analysis. Technical efficiency in agriculture is significantly positively associated with agricultural factor endowments, average farm size, farm specialisation, small-scale farms, and technological change. Foreign direct investments have an ambiguous effect. Reform and institutional developments, large-scale privatisation and price liberalisation, and urban- rural income gap are associated with technical efficiency in agriculture positively. An increase in technical efficiency in agriculture and the development of the rural economy are seen as a strategy to boost the level of living standards in agriculture and in rural areas.

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