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.

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.

The role of technical efficiency, market competition and risk in the banking performance in G20 countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yaoteng Zhao ◽  
Supat Chupradit ◽  
Marria Hassan ◽  
Sadaf Soudagar ◽  
Alaa Mohamd Shoukry ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Economic Performance ◽  
Banking Sector ◽  
Market Competition ◽  
Generalized Method Of Moments ◽  
Content Type ◽  
Banking Institutions ◽  
Sector Performance ◽  
The Impact ◽  
Risk Element

PurposeRecently, the financial sector has faced significant challenges regarding the market competition, its technical efficiency and risk factors around the globe and gain recent researchers' intentions. Thus, the present study aims to examine the impact of technical efficiency, market competition and risk in banking performance in Group of Twenty (G20) countries.Design/methodology/approachData have been obtained from the World Development Indicator from 2008 to 2019. For analysis purpose, random effect model and generalized method of moments (GMMs) have been executed using Stata.FindingsThe results revealed that market competition and banks' capital efficiency have a positive impact on banking performance, while banks' lending efficiency and non-performing loans have a negative association with the banking sector performance of G20 countries. These outcomes provide the guidelines to the regulators that they should formulate the effective policies related to the lending practices and non-performing loans that could improve the banking sector performance worldwide.Research limitations/implicationsThe study has examined only three economic factors like the technical efficiency rate, market competition and risk element, and their influences on banking institutions' operational and economic performance. But the analysis has proved that except these factors, several factors affect banking institutions' operational and economic performance. Thus, future scholars recommend they analyze all the banking sector areas, pick more factors and enlighten their operational and economic performance influences. Moreover, the author of this article has chosen a particular source for collecting data to meet his study's objective. Only a single piece of software has been applied to analyze data; thus, the data collected for this paper may be incomplete, lack accuracy and reliability. Therefore, the future authors are recommended to use multiple sources to collect data and its analysis to ensure the comprehension, completeness and accuracy.Originality/valueLast but not least, this study with the evidences from the banking sector of G20 countries tries to show on the banking management how the risk element matters in the banking sector in an economy. It makes it clear in which areas the banking institutions may be exposed to the risks, and how much sever different kinds of risks may be. Thus, it motivates the management to set a body of persons within the organization to monitor the risks, to try to avoid them and to overcome the problems created by these risks events.

Agricultural credit and technical efficiency in Ghana: is there a nexus?

2016 ◽  
Vol 76 (2) ◽  
pp. 309-324 ◽  
Author(s):  
Abdul-Hanan Abdallah
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Allocative Efficiency ◽  
Probit Model ◽  
Estimation Procedure ◽  
Farm Size ◽  
Agricultural Credit ◽  
Content Type ◽  
The Impact ◽  
Unique Dataset

Purpose – The purpose of this paper is to examine the impact of agricultural credit on technical efficiency of Ghanaian maize farmers using a unique dataset drawn from the database of Sub-Saharan Africa’s intensification of food crops agriculture (Afrint II) in 2008 period. Design/methodology/approach – In this study, a two-stage estimation procedure is employed to determine impact of agricultural credit on technical efficiency of Ghanaian maize farmers. The first stage utilized probit model while the second stage utilized stochastic frontier approach to estimate impact of credit on technical efficiency of Ghanaian maize farmers. Findings – The study found that farmers are producing below the frontier with average technical efficiency of 47 percent. Policy variables such as credit access; education, extension access and farm size played a stronger role in technical efficiency. Agricultural credit in particular increased technical efficiency by 3.8 percent. Research limitations/implications – The results should not be extended to the impact of agricultural credit on economic efficiency since the allocative efficiency component is not considered in this study. Also, caution should be taken in the interpretation of these results because the data could not permit the incorporation of all variables that might affect technical efficiency. Originality/value – The originality of the paper and its contribution to existing literature largely lies from the use of a unique dataset to find evidence of the impact of credit on efficiency in Ghana.

The impact of credit on the technical efficiency of food crop producing smallholder farmers in Ethiopia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Melkamu Girma Koricho ◽  
Musa Hasen Ahmed
Keyword(s):  
Technical Efficiency ◽  
Smallholder Farmers ◽  
Stochastic Frontier ◽  
Content Type ◽  
Access To Credit ◽  
Matching Technique ◽  
Single Production ◽  
Nationally Representative ◽  
The Impact ◽  
Production Characteristics

PurposeThis study examines the impact of access to credit on the technical efficiency (TE) of maize-producing smallholder farmers in Ethiopia and explores factors determining credit utilization.Design/methodology/approachThe study relies on nationally representative data collected in 2015/2016. The data are analyzed by combining the Propensity Score Matching technique with a stochastic frontier model that corrects selectivity bias arising from unobserved variables.FindingsThe result shows that credit service improves TE and helps smallholder farmers to achieve the maximum possible output level from a given set of inputs used.Originality/valueTo the best of author’s knowledge, no study has yet measured the impact of access to credit on TE by controlling for both observed and unobserved heterogeneities. Existing research relied on a single production frontier model, assuming that credit users and non-users have similar production characteristics or ignored selection bias due to observable and unobservable characteristics.

The impact of credit on the technical efficiency of maize-producing households in Northern Ghana

2019 ◽  
Vol 79 (3) ◽  
pp. 304-322 ◽  
Author(s):  
Edward Martey ◽  
Alexander N. Wiredu ◽  
Prince M. Etwire ◽  
John K.M. Kuwornu
Keyword(s):  
Technical Efficiency ◽  
Smallholder Farmers ◽  
Stochastic Frontier ◽  
Northern Ghana ◽  
Efficiency Gains ◽  
Cross Sectional ◽  
Content Type ◽  
Land Fragmentation ◽  
Credit Programs ◽  
The Impact

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.

Ownership structure and bank performance in EU-15 countries

2018 ◽  
Vol 18 (3) ◽  
pp. 509-530 ◽  
Author(s):  
Carlo Migliardo ◽  
Antonio Fabio Forgione
Keyword(s):  
Technical Efficiency ◽  
Ownership Structure ◽  
Stochastic Frontier Analysis ◽  
Random Effect ◽  
Stochastic Frontier ◽  
Bank Performance ◽  
Continuous Variables ◽  
Content Type ◽  
Frontier Analysis ◽  
The Impact

PurposeThe purpose of this paper is to investigate the impact of ownership structure on bank performance in EU-15 countries. Specifically, it examines to what extent shareholder type and the degree of shareholder concentration affect the banks’ profitability, risk and technical efficiency.Design/methodology/approachThis study uses a sample of 1,459 banks operating in EU-15 countries from 2011 to 2015. It constructs a set of continuous variables capturing the ownership nature, the concentration and their interactions, and estimates an instrumental variable random effect (IV-RE) model. In addition, a panel data stochastic frontier analysis is conducted to estimate the time-varying technical efficiency for profitability and costs.FindingsThe empirical analysis shows that bank performance is affected by shareholder type. When regressed against the entrenchment behavior of the controlling owner hypothesis, banks with large-block shareholders are more profitable, less risky and more profit efficient. Further, ownership concentration reverts the negative effect related to the institutional, bank and industry ownership.Research limitations/implicationsThe results support the hypothesis that concentrated ownership helps to overcome agency problems. They also confirm that managerial involvement in banks’ capital enhances a bank’s profit and its volatility.Originality/valueTo the best of the authors’ knowledge, this is the first study to consider the ownership nature, the concentration and their interaction using continuous variables, which allows for more precise inferences. The results provide new evidence that bank profitability, cost efficiency and risk are affected by the type of direct shareholders.

scholarly journals Organic Farming Increases the Technical Efficiency of Olive Farms in Italy

Agriculture ◽  
2021 ◽  
Vol 11 (3) ◽  
pp. 209
Author(s):  
Maria Raimondo ◽  
Francesco Caracciolo ◽  
Concetta Nazzaro ◽  
Giuseppe Marotta
Keyword(s):  
Organic Farming ◽  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Farming System ◽  
Positive Role ◽  
Conventional Agriculture ◽  
Direct Sales ◽  
Organic Farming System ◽  
The Impact

While there is growing recognition of the positive role played by organic farming in the reduction of the negative externalities due to conventional agriculture, there is uncertainty about the effect of the latter on the economic performance of the farms. In this scenario, the present paper aims at investigating the effect of organic farming on technical efficiency in Italian olive farms. A cross-section dataset was analyzed through the stochastic frontier function, where the adoption of organic farming was explicitly modeled. Then, to obtain an unbiased estimate of the impact of organic farming on technical efficiency, a propensity score matching method was implemented. The findings reveal that organic farming increases technical efficiency in Italian olive farms by approximately 10%. The highest impact of organic farming is observed in small farms. As for the propensity to become organic, we found that the production and the direct sales of a higher quality of gross marketable output, as well as the intensity of labor and machines, increase the probability to adopt organic farming. Conversely, farm localization, the availability of family labor, and financial capital discourage conversion to the organic farming system.

scholarly journals Spatial Dependence Evaluation of Agricultural Technical Efficiency—Based on the Stochastic Frontier and Spatial Econometric Model

2021 ◽  
Vol 13 (5) ◽  
pp. 2708
Author(s):  
Ziqi Yin ◽  
Jianzhai Wu
Keyword(s):  
Spatial Distribution ◽  
Technical Efficiency ◽  
Spatial Dependence ◽  
Stochastic Frontier ◽  
Hebei Province ◽  
Agricultural Technology ◽  
Agricultural Product ◽  
Spatial Econometric ◽  
Frontier Analysis ◽  
The Impact

In recent years, through the implementation of a series of policies, such as the delimitation of major grain producing areas and the construction of advantageous and characteristic agricultural product areas, the spatial distribution of agriculture in China has changed significantly; however, research on the impact of such changes on the efficiency of agricultural technology is still lacking. Taking 11 cities in Hebei Province as the research object, this study examines the spatial dependence of regional agricultural technical efficiency using the stochastic frontier analysis and spatial econometric analysis. The results show that the improvement in agricultural technical efficiency is evident in all cities in Hebei Province from 2008 to 2017, but there is scope for further improvement. Industrial agglomeration has statistical significance in improving the efficiency of agricultural technology. Further, there is an obvious spatial correlation and difference in agricultural technical efficiency. Optimizing the spatial distribution of agricultural production, promoting the innovation, development, and application of agricultural technology, and promoting the expansion of regional elements can contribute to improving agricultural technical efficiency.

Does foreign direct investment influence R&D activity in the host country? Evidence from Vietnam

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Van Ha ◽  
Mark J. Holmes ◽  
Gazi Hassan
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Probit Model ◽  
Innovation Activity ◽  
Heckman Selection Model ◽  
Content Type ◽  
Domestic Firms ◽  
The Impact ◽  
Local Firms

PurposeThis study focuses on the linkages between foreign direct investment and the research and development (R&D) and innovation activity of domestic enterprises in Vietnam.Design/methodology/approachThe Heckman selection model approach is applied to a panel dataset of nearly 7,000 Vietnamese firms for the 2011–2015 study period to investigate the impact of foreign presence on the R&D of local firms through horizontal and vertical linkages. Probit model estimation is employed to examine how foreign investment influences the innovation activity of local companies.FindingsWhile there are a small number of firms carrying out R&D activities in Vietnam, foreign or joint domestic–foreign venture firms are less inclined than domestic firms to undertake R&D. Domestic factors that include capital, labor quality, location and export status of firm have a significant effect on the decision of domestic firms to participate in R&D activity. Only forward linkages and the gross firm output are found to have an impact on the R&D intensity of domestic enterprises, while other factors appear to have no significant influence on how much firms spend on R&D activities.Practical implicationsIn order to promote the R&D activity of domestic firms, policy should focus on (1) the backward linkages between local firms in downstream sectors with their foreign suppliers in upstream sectors, and (2) the internal factors such as labor, capital or location that affect the decisions made by domestic firms.Originality/valueGiven that foreign investment may affect R&D and innovation activity of local firms in host countries, the impact is relatively unexplored for many emerging economies and not so in the case of Vietnam. The availability of a unique survey on Vietnamese firm technology and competitiveness provides the opportunity to address this gap in the literature.

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