Does partial quantity rationing of credit affect the technical efficiency of dairy farmers in Punjab, Pakistan?

2018 ◽  
Vol 120 (2) ◽  
pp. 441-451 ◽  
Author(s):  
Yasir Mehmood ◽  
Kong Rong ◽  
Muhammad Khalid Bashir ◽  
Muhammad Arshad
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Household Head ◽  
Negative Effects ◽  
Dairy Farmers ◽  
Policy Makers ◽  
Content Type ◽  
Punjab Province ◽  
Clear Identification ◽  
Two Stages

Purpose The purpose of this paper is to empirically investigate the effect of partial quantity rationing of credit on the technical efficiency of dairy farmers in the Punjab province of Pakistan. Design/methodology/approach Prior to the field survey, the authors constructed a theoretical model for clear identification of partial quantity rationed dairy farmers. Data from 154 dairy farmers were collected that represented three districts of the province. The collected data were analyzed in two stages: first, the efficiency level of dairy farmers was estimated using a stochastic frontier approach; second, the authors employed an inefficiency-effects model to estimate the effect of partial quantity rationing of credit on technical efficiency. Findings The results revealed that education level of the household head, cross-breed and imported cattle, and electric chaff cutter, all had significant positive impacts on technical efficiency, followed by diversified sources of income. Conversely, the analysis of our key variables, interest rate on principal amount and partial quantity rationing of credit had significant negative effects on the technical efficiency of dairy farmers in selected districts of the Punjab province in Pakistan. Originality/value The study will be an important contribution to the existing credit constraints and technical efficiency literature and will particularly help the rural financial institutions in terms of approving the loan amount according to the actual requirements of the borrowers. The study’s findings and subsequent recommendations will be useful for policy makers in achieving the actual production level, bringing down the poverty levels and ensuring food security in the country.

Effects of partial quantity rationing of credit on technical efficiency of Boro rice growers in Bangladesh: Application of the stochastic frontier model

2021 ◽  
pp. 501
Author(s):  
Md Ghulam Rabbany ◽  
Yasir Mehmood ◽  
Fazlul Hoque ◽  
Tanwne Sarker ◽  
Arshad Ahmad Khan ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Seed Quality ◽  
Stochastic Frontier ◽  
Farm Labor ◽  
Negative Effects ◽  
Frontier Analysis ◽  
Credit Data ◽  
Two Stages ◽  
Boro Rice

In this study, we analyzed the effects of the partial quantity rationing of credit on the technical efficiency of Boro rice growers in the Pabna district of Bangladesh. Before conducting the field survey, we designed a theoretical framework and identified farm households affected by the partial quantity rationing of credit. Data were collected from 174 Boro rice growers and analyzed in two stages, where the technical efficiency of Boro rice growers was assessed using stochastic frontier analysis, and the inefficiency effects model was then applied to evaluate determinants of the technical efficiency. The mean technical efficiency of Boro rice growers was 78%, which indicates that their technical efficiency was 22% beyond the production frontier curve. The variables comprising the household head’s age, education level, seed quality, formal training, access to the market, farm labor, tillage cost, fertilizer cost, irrigation cost, and price of seedlings significantly affected the technical efficiency of rice growers. The variables of interest comprising the rate and partial quantity rationing of credit had significant negative effects on the technical efficiency of rice growers. The findings obtained in this study will help to enhance the actual production level using the available resources and improve the food security situation in Bangladesh.

Technical efficiency and its determinants in the Indian textile garments industry

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.

Macroeconomics of money laundering: effects and measurements

2017 ◽  
Vol 24 (1) ◽  
pp. 65-81 ◽  
Author(s):  
Nella Hendriyetty ◽  
Bhajan S. Grewal
Keyword(s):  
Developing Countries ◽  
Money Laundering ◽  
Tax Evasion ◽  
Developed Countries ◽  
Tax Revenue ◽  
Negative Effects ◽  
Policy Makers ◽  
Content Type ◽  
Macroeconomic Conditions ◽  
Illicit Flows

Purpose The purpose of this paper is to review studies focusing on the magnitude of money laundering and their effects on a country’s economy. The relevant concepts are identified on the basis of discussions in the literature by prominent scholars and policy makers. There are three main objectives in this review: first, to discuss the effects of money laundering on a country’s macro-economy; second, to seek measurements from other scholars; and finally, to seek previous findings about the magnitude and the flows of money laundering. Design/methodology/approach In the first part, this paper outlines the effects of money laundering on macroeconomic conditions of a country, and then the second part reviews the literature that measures the magnitude of money laundering from an economic perspective. Findings Money laundering affects a country’s economy by increasing shadow economy and criminal activities, illicit flows and impeding tax collection. To minimise these negative effects, it is necessary to quantify the magnitude of money laundering relative to economic conditions to identify the most vulnerable aspects of money laundering in a country. Two approaches are used in this study: the first is the capital flight approach, as money laundering will cause flows of money between countries; the second is the economic approach for measuring money laundering through economic variables (e.g. tax revenue, underground economy and income generated by criminals) separately from tax evasion. Originality/value The paper offers new insights for the measurement of money laundering, especially for developing countries. Most methods in quantifying money laundering have focused on developed countries, which are less applicable to developing countries.

The Covid-19 pandemic and technical efficiency of Russian firms: a stochastic frontier production function approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Parul Singh ◽  
Kashika Arora ◽  
Areej Aftab Siddiqui
Keyword(s):  
Technical Efficiency ◽  
Production Function ◽  
Market Competition ◽  
Stochastic Frontier ◽  
Innovation Activity ◽  
Peak Period ◽  
Role Of Government ◽  
Content Type ◽  
External Assistance ◽  
The Impact

Purpose This paper aims to undertake the efficiency analysis in the form of stochastic frontier to estimate a Cobb–Douglas production function by controlling for the heterogeneity across Russian firms by including firm size, ownership, age, innovation activity and market competition. Design/methodology/approach During the peak period of Covid-19, certain firms witnessed either a decrease or increase in sales. Using this segregation of firms from World Bank’s Covid-19 impact surveys follow-up to the Enterprise Survey for Russia, this study empirically investigates the determinants of technical efficiency of these firms focusing on the role of government assistance. Findings The findings suggest that by segregating firms in terms of sales, different internal factors can enable in steering through pandemic situation besides just depending on external assistance. Originality/value One of the few papers to analyse the impact of the pandemic on Russian firms by considering World Bank Covid Survey.

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

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.

scholarly journals Estimating technical efficiency of Chinese table grape wholesalers

2015 ◽  
Vol 117 (6) ◽  
pp. 1670-1688 ◽  
Author(s):  
Weihua Jiao ◽  
Zetian Fu ◽  
Weisong Mu ◽  
Xiaoshuan Zhang ◽  
Jianjun Lu ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Agricultural Research ◽  
Table Grape ◽  
Scale Efficiency ◽  
Tobit Regression ◽  
Policy Makers ◽  
Content Type ◽  
Explanatory Variables ◽  
Parametric Data ◽  
Grape Varieties

Purpose – The purpose of this paper is to estimate the technical efficiency of Chinese table grape wholesalers and subsequently to examine the degree to which the calculated efficiency correlates with a set of explanatory variables. Design/methodology/approach – A two-stage procedure is applied in this paper. First, a non-parametric data envelopment analysis (DEA) technique is applied to investigate the degree of technical efficiency for Chinese table grape wholesalers. Second, Tobit regression is used to analyze the factors influencing technical efficiency. Findings – Research results reveal that the mean technical efficiency of the sample is 0.544 and 0.860 under constant returns scale (CRS) and VRS assumptions, respectively, and the scale efficiency (SE) is 0.620. The variables of experiences, number of grape varieties on sale, daily selling volumes and fixed sale ratio have a significant effect on technical efficiency, while the other exogenous variables do not affect the efficiency in any significant way. Research limitations/implications – The findings of this research are specific to table grape wholesalers in China, however, the method used in this study is transferrable and applicable to the study of similar problems in others countries. Originality/value – This research has yielded some interesting and original insights into the efficiency level of Chinese grape wholesalers and the factors that influence the level of efficiency. The findings have practical implications for Chinese agriculture policy makers, and are able to stimulate further research of a similar type in the international agricultural research community.

Relationship between availability of WLB practices and financial results

2019 ◽  
Vol 48 (4) ◽  
pp. 935-956 ◽  
Author(s):  
Inocencia María Martínez-León ◽  
Isabel Olmedo-Cifuentes ◽  
M. Eugenia Sanchez-Vidal
Keyword(s):  
Management Practices ◽  
Negative Effects ◽  
Senior Managers ◽  
Policy Makers ◽  
Content Type ◽  
Positive Effects ◽  
Business Results ◽  
Audit Firms ◽  
Return On Capital ◽  
Flexible Work Practices

PurposeThe purpose of this paper is to investigate the effect of work-life balance (WLB) practices on the financial results of Spanish accounting audit SMEs.Design/methodology/approachUsing survey data from 148 Spanish accounting audit SMEs, a regression analysis was developed to estimate the direct effects of WLB practices on firms’ financial results (return on capital employed and return on assets). Firm age and size are considered as control variables.FindingsSenior managers should foster some WLB practices (time-reduction and flexible-work practices) so as to enhance SME audit firms’ financial results. Work-leave practices should be analyzed so as to promote some positive outcomes for firms, through internal reorganization or by reorienting employees to resorting to the most beneficial practices.Practical implicationsNot all WLB practices have positive effects on the business results of SMEs. Therefore, managers may try to reduce these negative effects or redirect employees to WLB practices that have more positive effects on their firms’ financial results. Strategic information is also provided to employees and public institutions about fostering WLB in SMEs.Social implicationsThe availability of WLB practices has been deemed fundamental not only for policy makers and society, but also for the organizational culture and for human resource management practices.Originality/valueThis study is the first to investigate the association between the availability of WLB initiatives in SMEs and firms’ financial results.

Evaluating the effect of subsidies for rural development on agri-food and forestry firms

2019 ◽  
Vol 27 (80) ◽  
pp. 150-167
Author(s):  
José A. Pérez-Méndez ◽  
María Pérez-Urdiales ◽  
David Roibas
Keyword(s):  
Rural Development ◽  
Technical Efficiency ◽  
Technical Progress ◽  
Stochastic Frontier ◽  
Content Type ◽  
Factors Affecting ◽  
Forestry Industry ◽  
The One ◽  
The Impact ◽  
Positive Effect

Purpose This paper aims to evaluate the impact of the subsidies established by Measure 123 of the Rural Development Policy on the productivity of a sample of agri-food and forestry companies in the region of Asturias over the period 2006-2009. Design/methodology/approach The authors estimate a stochastic frontier function which allows subsidies to be considered as affecting both the level of technical efficiency and technical progress. Findings The results show that while subsidies have a positive effect on the technical progress of companies in the agri-food industry, for the forestry industry, the effect materializes as an improvement in technical efficiency. Additionally, other factors affecting either, technical progress and technical efficiency were identified. Originality/value This study adopts a model that allows the separate identification of the effect of subsidies on the level of efficiency, on the one hand, and on the technical progress, on the other.

Conflict management and resolution in family-owned businesses

2015 ◽  
Vol 5 (2) ◽  
pp. 140-156 ◽  
Author(s):  
Keanon Alderson
Keyword(s):  
Corporate Governance ◽  
Family Business ◽  
Family Firms ◽  
Original Research ◽  
Negative Effects ◽  
Policy Makers ◽  
Content Type ◽  
Governance Tools ◽  
Business Practitioners ◽  
Practical Implications

Purpose – The purpose of this paper is to review the literature concerning the negative effects of conflict among family businesses and to make practitioner focussed recommendations for the prevention, management, and resolution of conflict. This paper discusses the prevalence of conflict in family firms, differentiates the types of conflict present, and recommends proven approaches to prevent and manage the conflict, with a focus on corporate governance tools. Examples of well known companies are presented. Design/methodology/approach – A review was conducted of the literature concerning family business conflict and corporate governance. Findings – Conflict is a common problem in family firms that has significant consequences for the business and the family. Research has shown effective governance may reduce and manage conflict. Research limitations/implications – This was a literature review. As such it did not perform original research. Practical implications – This paper has practical implications for family business practitioners. The paper offers the negative aspects of conflict and recommends effective mechanisms such as governance tools to enable the prevention, management, and resolution of conflict. Social implications – Implications exist for practitioners and policy makers in order to reduce conflict and increase the viability of family firms. Originality/value – The scholarly literature has been reviewed and synthesized into distillation for family business owners.

scholarly journals A research note on multinationality and firm performance

2017 ◽  
Vol 37 (10) ◽  
pp. 1408-1424 ◽  
Author(s):  
Kevin Grant ◽  
Roman Matousek ◽  
Martin Meyer ◽  
Nickolaos G. Tzeremes
Keyword(s):  
Firm Performance ◽  
Technical Efficiency ◽  
Developing Economies ◽  
Performance Measurements ◽  
Managerial Decision ◽  
Business Services ◽  
Function Type ◽  
Content Type ◽  
Knowledge Intensive ◽  
Two Stages

Purpose The purpose of this paper is to provide a fresh insight into the examination of the comparison between multinationality and firm performance, measured through technical efficiency levels by overcoming methodological constraints and misunderstandings presented in earlier research. Design/methodology/approach The authors estimate firms’ efficiency levels in a production function-type framework through technical efficiency levels using nonparametric data envelopment analysis. The authors include firms from both developed and developing economies, from different national origins and with different sectoral characteristics, with a particular focus on knowledge-intensive business services (KIBS) and capital-intensive business services (CIBS). Findings The study confirms for the case of KIBS the existence of the three-stage sigmoid (S-shaped) hypothesis between multinationality and firm performance measured through technical efficiency levels. Finally, the empirical findings reveal that CIBS exhibit only the first two stages, thus forming a “U”-shape relationship. Originality/value The authors propose the application of different firms’ performance measurements, providing us with the ability to unpack a firms’ managerial decision processes with regards to determining the optimised investment(s) in technology and research and development and with a particular focus on KIBS and CIBS.

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