scholarly journals Productivity Growth of Indian Manufacturing Sector: Panel Estimation of Stochastic Production Frontier and Technical Inefficiency

2007 ◽  
Vol 40 (2) ◽  
pp. 35-36 ◽  
Author(s):  
S. Madheswaran ◽  
Hailin. Liao ◽  
Badri Narayan. Rath
Keyword(s):  
Productivity Growth ◽  
Manufacturing Sector ◽  
Panel Estimation ◽  
Stochastic Production Frontier ◽  
Production Frontier ◽  
Technical Inefficiency ◽  
Stochastic Production ◽  
Indian Manufacturing Sector

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.

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.

A generalized stochastic production frontier analysis of technical efficiency of rice farming

2016 ◽  
Vol 9 (2) ◽  
pp. 114-128 ◽  
Author(s):  
Aditi Bhattacharyya ◽  
Raju Mandal
Keyword(s):  
Technical Efficiency ◽  
Rice Production ◽  
Farm Households ◽  
Rice Farming ◽  
Stochastic Production Frontier ◽  
Production Frontier ◽  
Technical Inefficiency ◽  
Content Type ◽  
Farm Level ◽  
Stochastic Production

Purpose This paper aims to analyze farm-level technical inefficiency of rice farming in Assam, India, using a multiple-output generalized stochastic frontier framework. Design/methodology/approach Primary data for this study were collected in 2009-2010 from 310 farm-households in four non-contiguous districts of Dhubri, Morigaon, Dibrugarh and Cachar that are located in different agro-climatic regions of Assam. Based on a Cobb–Douglas production function for multiple rice varieties, the paper simultaneously estimates the generalized stochastic production frontier and examines effects of exogenous factors on farm-level technical inefficiency. Findings Results of this study show that the average technical inefficiency of farms is 8.5 per cent in the sample. Further, inefficiency is lower in the frequently flood prone areas, and availability of government support helps reduce such inefficiency as well. However, technical efficiency is higher for the Muslim farm-households, and it decreases with greater land fragmentation. The study also finds that the use of primitive technology like bullock reduces technical efficiency of rice farming. Originality/value This paper is based on a novel data set that has specially been collected to examine productivity and efficiency of rice cultivation in the flood plains of Assam that has not been studied before. Further, to the best of the authors’ knowledge, this paper is the first one to model rice production as a multiple-output stochastic production frontier and analyze technical efficiency of rice production accordingly.

scholarly journals Technical Efficiency of the Setbag Net Fishery in Bangladesh: An Application of a Stochastic Production Frontier Model

2018 ◽  
Vol 15 (2) ◽  
pp. 59-65 ◽  
Author(s):  
Md Golam Rabbani ◽  
Md Akhtaruzzaman Khan ◽  
M Serajul Islam ◽  
Rozina Yeasmin Lucky
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Stochastic Production Frontier ◽  
Production Frontier ◽  
Technical Inefficiency ◽  
Total Cost ◽  
Fishing Boat ◽  
Effect Model ◽  
Proper Training ◽  
Stochastic Production

A study was conducted to examine the technical efficiency for Setbag net fishing boats operated in the year 2014. A total of 100 samples of Setbag net fishing boats were selected, of which 40 were from Cox’s Bazar, 40 were from Chittagong and 20 were from Bagerhat. Stochastic frontier (with technical inefficiency effect) model was specified and estimated. Results have shown that the estimated mean technical efficiency of Setbag net fishing boats is 84 percent. The efficiency of Setbag net fishing boat was positively associated with total cost, while the number of nets were negatively related to fishing day and crew size. Head maji’s age had significant effect on inefficiency at 5% level. Although, the effect on boats’ efficiency was positive, (though insignificant) for head maji’s experience, head maji’s education, engine horse power and boat age. The use of modern fishing boat and improved fishing technology should be promoted, through proper training and motivation program for fisher. At the same time old and unfit fishing boat and gears should be gradually removed and replaced by new and modern fishing boat.The Agriculturists 2017; 15(2) 59-65

Does a Diversified Crop Portfolio Make Farmers More Efficient? A Stochastic Production Frontier Analysis of Farm-level Data from Assam, India

2021 ◽  
pp. 097300522199758
Author(s):  
Raju Mandal ◽  
Shrabanti Maity
Keyword(s):  
Positive Impact ◽  
Northeast India ◽  
Government Support ◽  
Stochastic Production Frontier ◽  
Production Frontier ◽  
Frontier Analysis ◽  
Farm Level ◽  
Agriculture Sector ◽  
Level Data ◽  
Stochastic Production

The agriculture sector in India is beset with twin limitations of shrinking cultivable area and absence of major technological breakthroughs in the recent past. In such a situation, a judicious management of the farm in the form of adjustment in a crop portfolio can be quite useful to maximise output and minimise wastage of resources. This article seeks to examine whether a diversified crop portfolio makes the farmers more efficient using farm-level survey data collected from geographically diverse areas of Assam, a state in northeast India. The results of a stochastic production frontier analysis show that adoption of a diversified crop portfolio across crops and seasons makes the farmers more efficient in cultivation by helping them reduce weather-induced damages to crops and reap better returns from farming. This efficiency-enhancing effect of crop diversification is found to be heterogeneous among the regions. However, too much diversification reduces the efficiency of farmers. The results have important implications for Assam where floods cause extensive damage to crops every year. Moreover, access to extension services and government support are found to make the farmers more efficient. On the other hand, fixed-rent form of tenancy reduces efficiency of the farmers while household size has a positive impact on the same.

scholarly journals The Economics and Productivity of Organic versus Conventional U.S. Dairy Farms

2021 ◽  
pp. 1-19
Author(s):  
Richard F. Nehring ◽  
Jeffrey Gillespie ◽  
Catherine Greene ◽  
Jonathan Law
Keyword(s):  
United States ◽  
Returns To Scale ◽  
Dairy Farms ◽  
Stochastic Production Frontier ◽  
Production Frontier ◽  
Return On Assets ◽  
Input Distance Function ◽  
Technological Adoption ◽  
Stochastic Production ◽  
Certified Organic

Abstract United States certified organic and conventional dairy farms are compared on the basis of economic, financial, and technological measures using dairy data from the 2016 USDA Agricultural Resource Management Survey. A stochastic production frontier model using an input distance function framework is estimated for U.S. dairy farms to examine technical efficiency and returns to scale (RTS) of farms of both systems and by multiple size categories. Financial and economic measures such as net return on assets and input costs, as well as technological adoption measures are compared by system and size. For both systems, size is the major determinant of competitiveness based on selected measures of productivity and RTS.

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