Impact of financial inclusion on technical efficiency of paddy farmers in Bangladesh

2017 ◽  
Vol 77 (4) ◽  
pp. 484-505 ◽  
Author(s):  
Sonia Afrin ◽  
Mohammed Ziaul Haider ◽  
Md. Sariful Islam
Keyword(s):  
Technical Efficiency ◽  
Ordinary Least Squares ◽  
Financial Inclusion ◽  
Stochastic Production Frontier ◽  
Cross Sectional ◽  
Content Type ◽  
Southwest Region ◽  
Stochastic Production ◽  
Paddy Farmers ◽  
The Impact

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.

The effect of the financial crisis on audit quality: European evidence

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maria I. Kyriakou
Keyword(s):  
Financial Crisis ◽  
Audit Quality ◽  
Ordinary Least Squares ◽  
Least Squares Regression ◽  
Cross Sectional ◽  
Accounting Firms ◽  
Content Type ◽  
Financial Firms ◽  
The Impact ◽  
Big Four

Purpose This paper aims to examine the impact of the recent financial crisis on audit quality by analysing discretionary accruals. Design/methodology/approach This study considers a sample of German, French, Italian and Spanish non-financial firms from 2005 to 2013 to investigate the auditor’s independence. It uses a cross-sectional and time-series ordinary least squares regression model to control for other predictors of the auditor’s independence when the financial crisis produces a decrease in audit quality. Findings The proportion of the non-financial firms having lower audit quality was higher during the financial crisis. In addition, during the crisis auditors were less likely to provide a higher audit quality for these non-financial firms. The level of audit quality returned to normal levels during the post-crisis years when the crisis had ceased. Originality/value These findings contribute to the literature on the impact of economic and financial changes on audit quality. In addition, this research finds that the Big Four accounting firms provide a higher audit quality in different circumstances from non-Big Four accounting firms, and that audit quality decreased during the crisis and returned to normal in the post-crisis period.

scholarly journals The impact of agricultural extension on farmers’ technical efficiencies in Ethiopia: A stochastic production frontier approach

2017 ◽  
Vol 20 (1) ◽  
Author(s):  
Kidanemariam G. Gebrehiwot
Keyword(s):  
Technical Efficiency ◽  
Agricultural Extension ◽  
Research Area ◽  
Population Pressure ◽  
Extension Service ◽  
Stochastic Production Frontier ◽  
Production Frontier ◽  
Extension System ◽  
Stochastic Production ◽  
The Impact

Background: To address the structural food deficit and top down extension system that persisted for decades, the government of Ethiopia has introduced a new extension system, called Participatory Demonstration and Training Extension Systems, which serves more than 80% of the total population. As the program was streamlined to fit the different agro-climatic condition of the country, the extension approach practiced in the Tigray region (research area) was called Integrated Household Extension Program.Aim: This article reports on research aimed at measuring the technical efficiency levels of extension participants and non-participants; measuring the impact extension service on technical efficiency.Setting: The research was conducted in the northern part of the country, where agriculture is the main sources of livelihoods. Moisture is the most critical factor in the production system. The land holding size averages 0.5 ha per household compared to above three ha 30 years ago; indicating the high population pressure in the area.Methods: A sample of 362 agricultural extension service participants and 369 non-participant farm households from the northern part of Ethiopia, participated in the study. The stochastic production frontier technique was used to analyse the survey data and to compute farm-level technical efficiency.Results: The results showed an average level of technical efficiency of 48%. It is suggested that substantial gains in output and/or decrease in cost can be attained with the existing technology. All the variables included in the model to explain efficiency were found significant and with the expected sign, except education and number of dependants.Conclusion: The research tried to assess the impact of a new extension service (participatory in nature) on farmers’ productivity in a semi-arid zone, as compared with the conventional extension service and found in the literature areas with relatively better climatic conditions. Hence, if extension administrators could work to uplift the average and below average farmers into better performing farmers level, the overall production and living condition could improve substantially in the research area, and more or less in the rest part of the country.

scholarly journals Impact of information communication technology (ICT) and mass media usage on technical efficiency of fish farming in Ogun State, Nigeria

2021 ◽  
Vol 60 (2) ◽  
pp. 143-150
Author(s):  
Folasade Olukemi Oke ◽  
Gaius Olorunsogo ◽  
Dare Akerele
Keyword(s):  
Technical Efficiency ◽  
Sampling Technique ◽  
Fish Farming ◽  
Information Communication ◽  
Stochastic Production Frontier ◽  
Cross Sectional Survey ◽  
Average Output ◽  
Cross Sectional ◽  
Ogun State ◽  
The Impact

The role of information in agricultural development cannot be overemphasized, as information is vital in increasing production, improving marketing and enhancing distribution strategies. Therefore, the study examined the impact of information communication technologies on the technical efficiency of fish farming in Ogun State, Nigeria using a stochastic production frontier approach. In a cross-sectional survey, a multi-stage sampling technique was employed to elicit primary information from 120 fish farmers. Major ICT sources used by the fish farmers include television (81.7%), radio (79.2%) and the Internet (68.3%). The average output of catfish has positive and significant elasticity with regards to each input variable except family labour. The inefficiency model revealed that the age of farmers, farming experience, television and radio usage were significant but negatively related. That means that any increase in any of these factors will reduce the inefficiency of fish farmers and bring about an increase in technical efficiency. This implies that it is possible to increase technical efficiency in fish farming in the study area provided that the media channel (radio and television) predominantly used is improved. This study recommends a reduction in family labour usage while at the same time encouraging young people to venture into fish farming.

scholarly journals Competitive intensity and inefficiency in European container ports

2018 ◽  
Vol 3 (2) ◽  
pp. 165-184 ◽  
Author(s):  
Axel Merkel
Keyword(s):  
Technical Efficiency ◽  
The European Union ◽  
Stochastic Production Frontier ◽  
Competitive Intensity ◽  
Content Type ◽  
Negative Effect ◽  
Container Ports ◽  
Stochastic Production ◽  
The Relationship ◽  
Intensity Of Competition

Purpose The purpose of this paper is to empirically examine the relationship between intensity of competition and technical efficiency of large European container ports, accounting for regional diversities and spatial aspects of inter-port competition. Design/methodology/approach The analysis consists of applying a stochastic production frontier approach to a dataset of 77 large European container ports over the period 2002-2012, with inefficiency terms simultaneously modeled as a function of (among other factors) a constructed index of competitive intensity at different spatial levels. Findings The results indicate that there is no significant negative effect of competitive intensity on efficiency. In fact, for competing European ports within a proximity of 300 km, a higher level of competition is found to be associated with a higher level of technical efficiency. Originality/value The originality of the paper stems from its particular focus on European port regions and its novel findings in this context, which have implications for the discussions regarding pro-competitive port policy and regulation in the European Union.

Deregulation, technical efficiency and production risk in rice farming: evidence from Zhejiang Province, China

2020 ◽  
Vol 12 (4) ◽  
pp. 605-622
Author(s):  
Juanli Wang ◽  
Xiaoli Etienne ◽  
Yongxi Ma
Keyword(s):  
Technical Efficiency ◽  
Performance Metrics ◽  
Production Performance ◽  
Land Market ◽  
Stochastic Production Frontier ◽  
Production Frontier ◽  
Technical Inefficiency ◽  
Production Risk ◽  
Content Type ◽  
Stochastic Production

PurposeThe purpose of this paper is to evaluate the technical efficiency and production risk in China's rice production and examine the effect of factor market reform on these two agricultural performance metrics.Design/methodology/approachUsing an unbalanced farm-level panel data with 2,193 observations on 329 rice farms from 2004 to 2016, the authors estimate a translog stochastic production frontier model that accounts for both technical inefficiency and production risk. A one-step procedure through the maximum likelihood method that combines the stochastic production frontier, technical inefficiency and production risk functions is used to circumvent the bias problem often found in the conventional two-step model.FindingsEstimation results show that both land and labor market reforms significantly improved the level of technical efficiency over the years, although the effect of land market deregulation is of a much higher magnitude compared to the latter. The land market reform, however, has also increased the risk of production. The authors further find that a higher proportion of hired labor in total labor cost helps lower production risk, while also acting to decrease technical efficiency. Additionally, agricultural subsidies not only increased the output variability but also lowered technical efficiencyOriginality/valueFirst, the authors evaluate the effect of market deregulation on technical efficiency and production risk under a stochastic frontier framework that simultaneously accounts for both production performance metrics, which is important from a statistical point of view. Further, the authors exploit both cross-sectional and time-series variations in a panel setting to more accurately estimate the technical inefficiency scores and production risk for individual farmers, and investigate how the exogenous land and labor market reforms influence these two production performance measures in China's rice farming. This is the first study in the literature to analyze these questions under a panel framework.

Social norms, organizational learning and bribes in emerging economies: a study of foreign invested firms in Vietnam

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Binh T.T. Vuong ◽  
Thang V. Nguyen ◽  
Ngoc T. Phan
Keyword(s):  
Organizational Learning ◽  
Social Norms ◽  
Home Country ◽  
Ordinary Least Squares ◽  
Cross Sectional ◽  
Content Type ◽  
Local Leadership ◽  
Changing Roles ◽  
General Practices ◽  
The Impact

Purpose Drawing from institutional theory and organizational learning perspectives, the purpose of this paper is to examine how social norms of corruption in home countries and those in host localities influence firm bribery behavior. It also investigates factors that moderate the influence of these norms. Design/methodology/approach The study is based on survey data of foreign invested firms (FIFs) in Vietnam, conducted by the Vietnam Chamber of Commerce and Industry between 2010 and 2018 along with Transparency International’s Corruption Perception Index. The authors run ordinary least squares regressions to test the hypotheses. Findings The study provides evidence that social norms of corruption in both home countries and host localities influence firms’ bribery behavior, but their effects are moderated by different sets of factors. Specifically, the use of local leadership augments the impact of the host province’s corruption norms on the firm’s bribe payments. By contrast, the relationship between the home country’s corruption norms and a FIF’s bribe payment is weaker if local leadership is used, and stronger if the FIF’s home country belongs to the Organization for Economic Co-operation and Development. Research limitations/implications Repeated cross-sectional data do not allow us to genuinely keep track of the changing roles of home country and host province corruption norms over time.[AQ2] In addition, the use of perception measures for corruption norms is subject to potential biases. Practical implications As the hiring of local executives weakens the impact of the home country’s norms which are embedded in the MNCs’ general practices, a stronger learning measure and regular review of the headquarters’ policies and practices is needed to ensure the overseas branch’s compliance. For policymakers, it is critical to recognize that local corruption plays a role in shaping FIFs’ bribery behavior. Originality/value While the effect of social norms of corruption on firm bribery behavior has been recognized, to the best of the authors’ knowledge, this is the first study that examines the learning processes FIFs may take to make sense of and cope with these norms, and also the first one to specify factors that moderate the influence of these norms.

scholarly journals The Impact of Parcel Structure on the Efficiency of Finnish Dairy Farms

2015 ◽  
Vol 44 (1) ◽  
pp. 65-77 ◽  
Author(s):  
Olli Niskanen ◽  
Anna-Maija Heikkilä
Keyword(s):  
Technical Efficiency ◽  
Dairy Farms ◽  
Stochastic Production Frontier ◽  
Production Frontier ◽  
Parcel Size ◽  
Farm Efficiency ◽  
Stochastic Production ◽  
The Impact

In Finland, expanding dairy farms often face the problem of additional fields being geographically distant and only available as small parcels. We develop a stochastic production frontier model to estimate the technical efficiency of Finnish dairy farms and simulate the effect of parcel distance and parcel size on the efficiency of an average farm for 2000 through 2009. The overall development of technical efficiency is positive during the study period but increases in distance and decreases in parcel size both significantly reduce farm efficiency. Therefore, efforts to improve the parcel structure are justified.

scholarly journals Technical efficiency of FDI firms in the Vietnamese manufacturing sector

2016 ◽  
Vol 16 (3) ◽  
pp. 205-230 ◽  
Author(s):  
Hoang Duong Vu
Keyword(s):  
Foreign Direct Investment ◽  
Technical Efficiency ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
Stochastic Production Frontier ◽  
Production Frontier ◽  
Cross Sectional ◽  
Net Revenue ◽  
Stochastic Production ◽  
Positive Correlations

Abstract The study examines technical efficiency of Foreign Direct Investment (FDI) firms in the Vietnamese manufacturing sector by applying stochastic production frontier model and making use of cross-sectional data in the period 2009-2013. The average level of technical efficiency of FDI firms is about 60% and it is higher than that of domestic firms (including private firms and state-owned firms). In addition, the study also analyses correlation between technical efficiency of FDI firms and other factors. It finds that there are positive correlations between FDI technical efficiency and net revenue per labour, firm’s age or export activities in 2013. However, the study is unable to find evidence of a relationship between FDI technical efficiency and infrastructure or firm’s investment activities.

How important is mobile telephony for economic growth? Evidence from MENA countries

Info ◽  
2016 ◽  
Vol 18 (3) ◽  
pp. 58-79 ◽  
Author(s):  
Saibal Ghosh
Keyword(s):  
Economic Growth ◽  
Ordinary Least Squares ◽  
Simultaneous Equation ◽  
Equation Model ◽  
Financial Inclusion ◽  
Mobile Telephony ◽  
Content Type ◽  
Mena Countries ◽  
Cent Increase ◽  
The Impact

Purpose The explosion of mobile telephony in recent times has led to the emergence of a significant volume of literature. One area that has been relatively under-researched has been the role of mobile telephony in impacting economic growth and the relevance of financial inclusion in this respect. Using data on MENA countries during 2001-2012, this paper aims to examine this issue within an empirical framework. Design/methodology/approach The analysis is based on longitudinal data for the period 2001-2012 and examines the interrelationships among per capita income, financial inclusion and mobile telephony. To take on board this interrelationship, the authors use a simultaneous equation model. In contrast to the ordinary least squares, 3SLS exploits the information that the disturbance terms in the two structural terms are contemporaneously correlated, thereby producing consistent estimates. Findings The analysis suggests a significant relationship among these variables. In particular, a 1 per cent increase in the fraction of population using mobile telephony improves incomes by roughly 0.3 per cent points, whereas a similar 1 per cent increase in financial inclusion has double the impact on income. The findings also support a convex, non-linear relationship between income and cellular penetration. Robustness tests lend credence to these findings. Originality/value Although there are several studies on mobile telephony and growth, this paper provides a completely original contribution in the area of financial inclusion, linking the development of access to mobile communication to new channels for the unbanked population in the Arab economies.

The intra business group effects of alliance network extensions

2016 ◽  
Vol 54 (6) ◽  
pp. 1420-1442 ◽  
Author(s):  
I-Fen Chen ◽  
Shao-Chi Chang
Keyword(s):  
Strategic Alliances ◽  
Business Groups ◽  
Abnormal Returns ◽  
Business Group ◽  
Ordinary Least Squares ◽  
Network Effect ◽  
Share Price ◽  
Cross Sectional ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to better understand the influence of business group membership by exploring how actions by a member firm influence other firms in the business group. Specifically, the authors ask two questions in this study: when a member firm forms strategic alliances with partners outside of the business group, how does the alliance influence other members in the business group? Moreover, which types of member firms are more affected than others? Design/methodology/approach – The authors employ standard event-study methodology to examine the stock price responses for the focal and member firms on the announcement of an alliance. Moreover, the authors employ the cross-sectional regression analyses to test hypotheses concerning the impact of alliance, group, and firm characteristics on the cumulative abnormal returns of non-announcing members. All regressions are estimated using ordinary least squares. Findings – The results show that, on average, alliance-announcing member firms experience significantly positive share price responses to announcements of strategic alliances. Moreover, the impact of alliance formation spillover to other non-announcing members in the business group. The authors also find that the influences on the non-announcing members are dissimilar. The non-announcing members are more strongly affected when they are in different industries from the non-member partner, and when the ownership of the business group is more concentrated. Originality/value – This study is to extend the resource complementarities perspective, which may help firms to more effectively configure their network portfolios in order to develop synergies among related network resources. The study thus extends the alliance portfolio literature to the literature on business groups. Since the inter-firm networks within business groups are more complex than those in alliance portfolios, the authors are able to study how the structure of a business, such as ownership concentration, can influence the intra-network effect.

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