Productivity growth of Indonesian rice production: sources and efforts to improve performance

2018 ◽  
Vol 67 (9) ◽  
pp. 1792-1815 ◽  
Author(s):  
Joko Mariyono
Keyword(s):  
Technological Change ◽  
Technical Efficiency ◽  
Production Technology ◽  
Productivity Growth ◽  
Scale Effects ◽  
Allocative Efficiency ◽  
Rice Production ◽  
Content Type ◽  
Tfp Growth ◽  
Efficiency Effects

PurposeThe purpose of this paper is to investigate the productivity of rice production by decomposing the growth of total factor productivity (TFP) into four components: technological change, scale effects, technical and allocative efficiencies.Design/methodology/approachThis study employed an econometric approach to decompose TFP growth into four components: technological change, technical efficiency, allocative efficiency and scale effect. Unbalanced panel data used in this study were surveyed in 1994, 2004 and 2014 from 360 rice farming operations. The model used the stochastic frontier transcendental logarithm production technology to estimate the technology parameters.FindingsThe results indicate that the primary sources of TFP growth were technological change and allocative efficiency effects. The contribution of technical efficiency was low because it grew sluggishly.Research limitations/implicationsThis study has several shortcomings, such as very lowR2and the insignificant elasticity of labour presented in the findings. Another limitation is the limited time period panel covering long interval, which resulted in unbalanced data.Practical implicationsThe government should improve productivity growth by allocating more areas for rice production, which enhances the scale and efficiency effects and adjusting the use of capital and material inputs. Extension services should be strengthened to provide farmers with training on improved agronomic technologies. This action will enhance technical efficiency performance and lead to technological progress.Social implicationsAs Indonesian population is still growing at a significant rate and the fact that rice is the primary staple food for Indonesian people, the productivity of rice production should increase continually to ensure social security at a national level.Originality/valueThe productivity growth is decomposed into four components using the transcendental logarithm production technology based on farm-level data. The measure has not been conducted previously in Indonesia, even in rice-producing countries.

Productivity growth in India's bakery manufacturing industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shiv Kumar ◽  
Abdulla ◽  
ChhatraPal Singh
Keyword(s):  
Technical Efficiency ◽  
Productivity Growth ◽  
Manufacturing Industry ◽  
Stochastic Frontier ◽  
Allocative Efficiency ◽  
Scale Efficiency ◽  
Firm Level ◽  
Indian States ◽  
Content Type ◽  
Bakery Industry

PurposeThe main aim of this paper is to examine the total factor productivity (TFP) and its components namely, technological change, technical efficiency change, scale change and allocative change in bakery industry in India.Design/methodology/approachThe study is based on panel data on 35 Indian states for the period 2009–2010 and 2012–2013. Stochastic frontier function is employed to estimate the productivity growth.FindingsThe results show that TFP is driven by technological progress, followed by technical efficiency and scale efficiency. Allocative efficiency, however, has a negative effect on TFP.Research limitations/implicationsThe bakery industry needs to define its innovation strategies, as these strategies lead to different outcomes that can be achieved only through the management of resources dedicated to the generation and implementation of innovations.Originality/valueUsing frontier production function takes the stochastic context into account for the dynamic behaviour of TFP and its components. Most of the past studies have assessed the TFP at the aggregate level using three-digit National Industrial Classification (NIC) or four-digit NIC code. An analysis at higher levels aggregation masks the variation in TFP and its components available at the firm level. This study uses five-digit NIC data to measure the firm specific TFP of bakery industry. Further, it looks at the contribution of technical progress (TP), technical efficiency, scale efficiency and allocative efficiency.

Productivity growth, catching-up and technology innovation in microfinance institutions in India: evidence using a bootstrap Malmquist Index approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asif Khan ◽  
Rachita Gulati
Keyword(s):  
Productivity Growth ◽  
Productivity Index ◽  
Productivity Change ◽  
Microfinance Institutions ◽  
Truncated Regression ◽  
Content Type ◽  
Tfp Growth ◽  
Catching Up ◽  
Double Bootstrap ◽  
Size Groups

PurposeThis paper aims to examine the total factor productivity (TFP) change and its components: efficiency change and technical change in microfinance institutions (MFIs) in India operating from 2005 to 2018. The study also scrutinizes the variations in productivity levels across the distinct organizational form and size groups of MFIs. In addition to this, the authors identify the contextual factors that determine TFP growth, catching-up and technology innovation in MFIs.Design/methodology/approachThe study employs a smooth homogeneous bootstrap estimation procedure of Simar and Wilson (1999) for obtaining reliable estimates of Malmquist indices –productivity and its components – in a data envelopment analysis (DEA) framework for individual MFIs. In order to identify the determinants of productivity change and its components, the study follows Simar and Wilson's (2007) guidelines and applies a bootstrap truncated regression model. The double bootstrap procedure performs well, both in terms of allowing correct estimation of bias and deriving statistically consistent productivity estimates in the first and root mean square errors in the second stage of the analysis.FindingsThe empirical results reveal that the MFIs have shown average productivity growth of 6.70% during the entire study period. The observed productivity gains are primarily contributed by a larger efficiency increase at the rate of 4.80%, while technical progress occurs at 2.3%. Nonbanking financial companies (NBFC)-MFIs outperformed non-NBFC-MFIs. Small MFIs show the highest TFP growth in terms of size groups, followed by the large MFIs and medium MFIs. The bootstrap truncated regression results suggest that the credit portfolio, size and age of MFIs matter in achieving higher productivity levels.Practical implicationsThe practical implication drawn from the study is that the Indian MFI industry might adopt the latest technology and innovations in the products, risk assessment and credit delivery to improve their productivity levels. The industry must focus on enhancing the managerial skill of its employees to achieve a high productivity level.Originality/valueThis study is perhaps the initial attempt to explain the productivity behavior of MFIs in India by deploying a statistically robust double bootstrap procedure in the DEA-based Malmquist Productivity Index (MPI) framework. The authors estimate the bias-adjusted productivity index and its decompositions, which represent more reliable and statistically consistent estimates. For contextual factors responsible for driving productivity change, the study deploys a bootstrap truncated regression approach.

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.

Does innovation matter for total factor productivity growth in India? Evidence from ARDL bound testing approach

2018 ◽  
Vol 13 (5) ◽  
pp. 1311-1329 ◽  
Author(s):  
Seenaiah Kale ◽  
Badri Narayan Rath
Keyword(s):  
Total Factor Productivity ◽  
Productivity Growth ◽  
Growth Accounting ◽  
Factor Productivity ◽  
Content Type ◽  
Tfp Growth ◽  
Innovation Activities ◽  
Long Run ◽  
Short Run ◽  
Testing Approach

Purpose The purpose of this paper is to examine whether innovation plays a significant role in the total factor productivity (TFP) growth in India at an aggregate level. Design/methodology/approach This study first estimates the TFP growth using a growth accounting framework. In the second stage, the authors examine the long-run and short-run impact of innovation on TFP growth using the ARDL bound testing approach. Findings The results indicate a cointegrating relationship between innovation and TFP growth. Further, coefficients of long-run elasticity show that the increase in overall innovation activities improves the TFP growth. Other factors such as human capital, financial development and FDI do not affect the TFP growth in the long run; however, these variables significantly affect the productivity growth in the short run. Practical implications Findings of the study suggest that the innovation-friendly policies such as the strengthening of intellectual property rights, R&D subsidies and innovation rebates may spur the productivity growth, and hence, good growth and prosperity as well. Originality/value Having devoted a large volume of literature to address the sources of economic growth, the present study focuses on the determinants of TFP growth in India which may fall in similar category but differ in several angles: First, the authors construct a TFP index using a growth accounting framework. Second, the authors construct an innovation index using principal component analysis which is new to the literature and also an innovation index. Third, given the scanty innovation activities in low developed countries like India and its widening role in the contemporary literature, special emphasis will be given to this aspect. Finally, the effect of the examined relationship on TFP growth in the long run and short run provides several implications for policy purpose to the developing nations like India.

Allocative and technical efficiency of New Zealand Banks

2016 ◽  
Vol 24 (4) ◽  
pp. 574-587
Author(s):  
Paul Rouse ◽  
David Tripe
Keyword(s):  
New Zealand ◽  
Technical Efficiency ◽  
Design Methodology ◽  
Allocative Efficiency ◽  
Improve Performance ◽  
Data Set ◽  
Content Type ◽  
Academic Literature ◽  
Price Effects ◽  
Technical And Allocative Efficiency

Purpose Paying too much for funding or failing to obtain adequate returns for lending and interest-bearing assets because of inappropriate mix is just as much a source of inefficiency in banking as overutilisation of input resources. The purpose of this research is to examine bank performance in terms of both technical and allocative efficiency. Design/methodology/approach This paper uses an extensive quarterly data set from New Zealand (NZ), which allows a decomposition of interest costs and revenues into quantity and price effects to explore the factors, including both technical and allocative efficiency, that impact changes in banks’ costs and revenues. Findings The research finds that focusing solely on technical efficiency can give a misleading impression of banking performance in our NZ sample. The inclusion of allocative efficiency measurement shows greater variability of performance, as well as highlighting changes in the mix of inputs and outputs needed for banks to improve performance. Originality/value A focus on prices and allocative efficiency has received little attention in the academic literature on banking. This paper shows how banking data can be decomposed into the respective price and quantity components.

Innovation inputs and efficiency: manufacturing firms in Sub-Saharan Africa

2019 ◽  
Vol 22 (1) ◽  
pp. 59-83 ◽  
Author(s):  
Laura Barasa ◽  
Patrick Vermeulen ◽  
Joris Knoben ◽  
Bethuel Kinyanjui ◽  
Peter Kimuyu
Keyword(s):  
Technical Efficiency ◽  
Absorptive Capacity ◽  
Stochastic Frontier ◽  
Manufacturing Firms ◽  
Sub Saharan Africa ◽  
Foreign Technology ◽  
Firm Level ◽  
Cross Sectional ◽  
Content Type ◽  
Efficiency Effects

Purpose Countries in Africa have a common goal policy of industrialisation that is expected to be driven by investing in innovation that yields efficiency. The purpose of this paper is to investigate the technical efficiency effects arising from innovation inputs including internal R&D, human capital development (HCD), and foreign technology adoption in manufacturing firms in Africa. Design/methodology/approach This study uses cross-sectional firm-level survey data from the 2013 World Bank Enterprise Survey and the linked 2013 Innovation Follow-up Survey. A heteroscedastic half-normal stochastic frontier is used for analysing the technical efficiency effects of innovation inputs of 418 firms. Findings This study reveals that internal R&D, and foreign technology have negative effects on technical efficiency. Notwithstanding, the combination of foreign technology and internal R&D, and foreign technology and HCD reinforce each other’s effects on technical efficiency. Practical implications This study provides evidence that whereas individual innovation inputs may not yield positive efficiency outcomes, the combination of absorptive capacity enhancing inputs comprising internal R&D and HCD with foreign technology is vital for enhancing technical efficiency in manufacturing firms in Africa. This study offers important lessons for managers in manufacturing firms in Africa. Originality/value This study is virtually the first to investigate the relationship between innovation inputs and efficiency in Africa. This study demonstrates that investing in foreign technology in isolation from absorptive capacity enhancing innovation inputs diminishes efficiency. HCD and internal R&D are imperative for building absorptive capacity that enhances efficiency outcomes arising from foreign technology.

scholarly journals Research, Extension, and Information: Key Inputs in Agricultural Productivity Growth (Distinguished Lecture)

2002 ◽  
Vol 41 (4I) ◽  
pp. 443-473 ◽  
Author(s):  
Boris E. Bravo-Ureta
Keyword(s):  
Economic Development ◽  
Technological Change ◽  
Technical Efficiency ◽  
Latin American ◽  
Low Income ◽  
Productivity Growth ◽  
Agricultural Research ◽  
Critical Role ◽  
Agricultural Productivity ◽  
Empirical Literature

The objective of this paper is to examine how economists have perceived the contributions of agriculture to the economic development process and then to present the case for the critical role that research, extension, and information can play in agricultural productivity growth and thus in economic development, particularly in low income countries. After a brief presentation of the framework commonly used to examine productivity growth, a distinction is made between technological change and technical efficiency. This distinction is crucial for policy purposes because the major impetus behind technological change are research and development, while education and experience are critical to improving managerial capabilities to make efficient use of a given technology. Empirical findings concerning the returns on agricultural research, with special attention to studies that have focused on Pakistan, are discussed. The paper then offers an overview of alternative methodologies available to measure technical efficiency, summarises the empirical literature, and finally focuses on studies dealing with Pakistani agriculture. Once it is established that improvements in technical efficiency could contribute significantly to increases in farm output and income, the discussion moves to some issues that have implications for the measurement and potential improvement of farm efficiency. An overview of a model of privatised extension services, currently being applied in some Latin American countries and which could have some relevance to conditions in Pakistan and elsewhere, is provided. The paper ends with the contention that significant improvements are needed in the collection and organisation of farm production data if we are to advance our understanding of the drivers of productivity growth at the farm level.

scholarly journals Resource-productivity, allocative efficiency and determinants of technical efficiency of rainfed rice farmers: A guide for food security policy in Nigeria

2008 ◽  
Vol 54 (No. 5) ◽  
pp. 224-233 ◽  
Author(s):  
K. Ogundari
Keyword(s):  
Technical Efficiency ◽  
Security Policy ◽  
Allocative Efficiency ◽  
Rice Production ◽  
Policy Makers ◽  
Access To Credit ◽  
Resource Productivity ◽  
Rainfed Rice ◽  
Long Run ◽  
High Level

This paper analyses the resource-productivity, technical efficiency (TE) and allocative efficiency of rain fed farmers in Nigeria. The results of the parameters that enter the production function shows that herbicide has the highest elasticities, then seeds, followed by fertilizer and land while labour has the least contribution to output. Also, the result for the allocative efficiency based on the computed <i>MVP<sub>x</sub></i> = <i>P<sub>x</sub></i> show that none of the respondents optimally allocated the inputs. However, a greater number of the respondents were found to underutilized variables like land, seeds, fertilizer and herbicide (<i>MVP<sub>x</sub></i> < <i>P<sub>x</sub></i>) while a greater number of the farmers over utilized labour (<i>MVP<sub>x</sub></i> > <i>P<sub>x</sub></i>). But in both cases, it was revealed that the use of more labour decreased the rice production from the study faster than any of the selected variables. The mean TE index was found to be 0.75. This suggests that 0.25 of rice yield is forgone due to inefficiency. The significant gamma (γ) value of 0.873 establishes the fact that a high level of technical inefficiency exists among the sampled farmers. Extension contact and access to credit are found to be significant determinants of TE among the farmers. Hence, agricultural policy makers in Nigeria should focus on how farmers could follow appropriate farm practices in the course of technology adoption to prevent under utilization of farm inputs via the intensification of extension activities in the country and accessibility to credit by farmers should be given more priority. Pursuing these will raise the productivity and efficiency of rice production in the country in the long run.

Productivity, efficiency and structural problems in Chinese dairy farms

2012 ◽  
Vol 4 (2) ◽  
pp. 168-175 ◽  
Author(s):  
Xiaohua Yu
Keyword(s):  
Technical Efficiency ◽  
Scale Effects ◽  
Dairy Farms ◽  
Data Availability ◽  
High Yield ◽  
Small Scale ◽  
Structural Problem ◽  
Content Type ◽  
Structural Problems ◽  
Small Scale Farmers

PurposeThe purpose of this paper is to identify the structural problem in the Chinese dairy sector. There exists a large number of low‐efficiency, small‐scale farms, and productivity inequality between small and large farms keeps increasing, which is a possible driving force behind the Melamine scandal in 2008.Design/methodology/approachUsing the stochastic frontier production function, this paper estimates and compares the changes in technology and technical efficiency between backyard, small‐scale, medium‐scale and large‐scale dairy farms in China over the period between 2004 and 2008.FindingsThere are compensating effects between technology and technical efficiency. However, low yield for backyard farms is mainly caused by traditional low‐yield varieties, even though the technical efficiency is very high, which cannot compensate for the low technology.Research limitations/implicationsThe author put the assumption of constant return to scale mainly due to the data availability. Such an assumption implies that there are no scale‐effects between the different scales in productivity, and the productivity difference is explained by technology and technical efficiency.Practical implicationsIn order to solve the structural problems, Chinese governments should help small‐scale farmers to adopt new high‐yield varieties, to subsidize small‐scale farmers, and to train farmers to master the complicated skills for raising high‐yield varieties.Originality/valueThe paper gives another possible explanation for the Melamine scandal of milk powder in 2008. If the structural problem cannot be solved, similar food safety scandals could happen once again.

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