The Effects of Improved Cassava Variety Adoption on Farmers’ Technical Efficiency in Indonesia

2021 ◽  
Vol 11 (4) ◽  
pp. 269-278
Author(s):  
Syafrial ◽  
Hery Toiba ◽  
Moh Shadiqur Rahman ◽  
Dwi Retnoningsih
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Probit Regression ◽  
Cross Sectional ◽  
Factors Affecting ◽  
Frontier Analysis ◽  
Access To Credit ◽  
Farm Work ◽  
The Impact

The adoption of technological innovations, such as an improved variety, has been widely promoted worldwide to improve agricultural productivity. This study aimed to examine factors affecting farmers’ decision to adopt a new improved cassava varieties (NICV), and to estimate the effects of NICV adoption on farmers’ technical efficiency. This research used cross-sectional data from 300 cassava farmers in East Java, Indonesia. Furthermore, the data were analyzed by probit regression to examine factors affecting farmers’ decision to adopt NICV. Propensity score matching (PSM) procedures and stochastic frontier analysis were applied to evaluate the impact of NICV adoption on farmers’ technical efficiency. The results indicated that adoption was highly influenced by cooperative membership, access to credit, internet access, certified land, and off-farm work. The stochastic frontier analysis, by controlling the matched sample using PSM procedures, demonstrated that NICV adoption positively and significantly impacted farmers’ technical efficiency. Those who adopted NICV showed a higher technical efficiency level than those who did not. This finding implies that improved varieties could be further promoted to increase productivity. The research suggests that there is a need to improve NICV adoption to increase the levels of technical efficiency and productivity.

scholarly journals Factors Affecting Technical Efficiency of Rubber Smallholders in Negeri Sembilan, Malaysia

2017 ◽  
Vol 9 (5) ◽  
pp. 226
Author(s):  
A. Aliyu ◽  
Ismail Abd Latif ◽  
Mad Nasir Shamsudin ◽  
Nolila Mohd Nawi
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Likelihood Function ◽  
Stochastic Frontier ◽  
Efficiency Score ◽  
Farm Size ◽  
Cross Sectional ◽  
Frontier Analysis ◽  
The Mean ◽  
Size Task

The main objective of the study was to figure out, identify and analyse the technical efficiency of rubber smallholders’ production in Negeri Sembilan, Malaysia. Multi-stage data collection procedures, comprising both purposive and random sampling techniques, were used. Using structured questionnaires, farm-level information with cross sectional data from five districts of Negeri Sembilan, were employed in the study. A parametric Stochastic Frontier Analysis (SFA), with a transcendental logarithmic (Translog) functional form, was used in the study. The descriptive statistics results revealed that, the mean rubber yield was 5465 kg while that of the seven inputs used include 1.2 ha, 602.7, 2.33, 363.6 kg, 13.0 lit, 13.2 man days and 2.47 respectively for farm size, task, farm tools, fertilizer, herbicides, labour and rubber clones.The inferential statistics showed that, the mean technical efficiency was found to be 0.73 with a standard deviation of 0.089. Thus, this translates that 27% accounted for technical inefficiency. Both the sigma square and gamma coefficients were found to be statistically significant at 1% level. The Log Likelihood Function (LLF) and the Log Rati (LR) test were found to be respectively 167.7 and 34.07. The results further revealed that, although none of the farms were found to be on the frontier, however, 9 farms were very near the frontier with efficiency score range between 0.90-0.99. And twenty (20) firms have range 0.80-0.90. Race, Tapping experience, household number and extension agent’s visits were found to be technically significant and are thus critical in determining technical efficiency of rubber smallholders in Negeri Sembilan, Malaysia.

scholarly journals Stochastic Frontier Analysis on Technical Efficiency of Strawberry Farming in Purbalingga Regency Indonesia

2020 ◽  
Vol 9 (2) ◽  
pp. 105
Author(s):  
Irene Kartika Eka Wijayanti, ◽  
Jamhari Jamhari, ◽  
Dwidjono, Hadi Darwanto ◽  
Any Suryantini
Keyword(s):  
Technical Efficiency ◽  
Formal Education ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Technical Inefficiency ◽  
Factors Affecting ◽  
Frontier Analysis ◽  
Central Java ◽  
Frontier Production Function ◽  
Central Java Province

The objective of this study is to determine technical efficiency and factors affecting technical inefficiency of strawberry farming in Purbalingga Regency. This study was conducted in Karangreja Subdistrict, Purbalingga Regency, Central Java Province. Purposive sampling method was utilized to select 100 farmers as the respondents. All of whom have been running their farm business for at least three years consecutively from 2015 to 2017. Stochastic frontier production function was applied to measure technical efficiency and factors affecting technical inefficiency. The findings show that strawberry farming in Purbalingga Regency, Central Java Province, is technically efficient with efficiency number varies between 26.50-99.40% and the average efficiency number of 77.80%. Furthermore, the results indicate that the farmers’ formal education and the number of household members significantly affect the technical efficiency of strawberry farming.

scholarly journals Estimation of technical efficiency of Czech farms operating in less favoured areas

2019 ◽  
Vol 65 (No. 10) ◽  
pp. 445-453
Author(s):  
Tamara Rudinskaya ◽  
Tomas Hlavsa ◽  
Martin Hruska
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Positive Impact ◽  
Stochastic Frontier ◽  
Agricultural Area ◽  
Farm Size ◽  
Identification System ◽  
Accounting Data ◽  
Frontier Analysis ◽  
The Impact

This paper deals with the technical efficiency analysis of farms in the Czech Republic. The empirical analysis provides an evaluation of technical efficiency with regard to the farm size, farm specialisation, and farm location. Accounting data of Czech farms from the Albertina database for the years 2011–2015 were used for the analysis. The data were classified by the utilised agricultural area and location of the farm expressed as a less favoured area type from the Land Parcel Identification System (LPIS) database. Research was conducted using the translogarithmic production function and Stochastic Frontier Analysis. The results indicate positive impact of farm size, expressed by utilised agricultural area, on technical efficiency. The analysis of the impact of farm specialisation on technical efficiency verified that farms specialised on animal production are more efficient. The lowest technical efficiency is shown by farms situated in mountainous Less Favoured Areas (LFAs), the highest technical efficiency by farms located in non-LFA regions.

scholarly journals EFISIENSI TEKNIS, PERTUMBUHAN TEKNOLOGI DAN TOTAL FAKTOR PRODUKTIVITAS PADA INDUSTRI MENENGAH DAN BESAR DI INDONESIA

2018 ◽  
Vol 6 (1) ◽  
pp. 1-20
Author(s):  
Muhammad Fazri ◽  
Hermanto Siregar ◽  
Nunung Nuryartono
Keyword(s):  
Technical Efficiency ◽  
Manufacturing Industry ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Reform Era ◽  
Frontier Analysis ◽  
Tfp Growth ◽  
Technological Growth ◽  
Before And After ◽  
The Impact

Indonesia's economic growth this decade has good development. Not only growing but also more stable than before the reform era which is visible from the persistence of Indonesia at the level of positive growth during the economic crisis of 2008. Growth was good was followed by a change in the proportion of manufacturing industry in Indonesia which, if seen followed by a decrease in the production of some subsector indices industry. Total factor productivity (TFP) is one measure to look at other factors apart from the impact on production inputs such as technical efficiency and technological growth. In this study, in addition to trying to calculate TFP in some manufacturing industries subsector, in this study also wants to see the value of technical efficiency and the growth of the technology is a component of TFP calculations by the method of Stochastic Frontier Analysis (SFA). The results show that there is growing value of technical efficiency in some industries and most industries experienced relatively low growth of the technology. In the era before and after the crisis most of the industry has increased TFP growth but some industry decreased TFP growth. Keywords: SFA, Technical efficiency, Technological growth, TFP

scholarly journals Technical Efficiency Analysis of Smallholder Cacao Plantations in Lampung Province

2017 ◽  
Vol 4 (1) ◽  
pp. 31
Author(s):  
Dewi Mulia Sari ◽  
Anna Fariyanti ◽  
Netti Tinaprilla
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Group Membership ◽  
Stochastic Frontier ◽  
Rehabilitation Program ◽  
Cocoa Bean ◽  
Factors Affecting ◽  
Frontier Analysis ◽  
Grafting Technique ◽  
Cacao Plantation

<em>Low productivity is the main problem in smallholder cacao plantation. One effort to overcome the problem is through rehabilitation. The research aimed to (1) analyze the factors affecting cocoa bean production, (2) analyze technical efficiency level, and (3) analyze the factors affecting technical efficiency of smallholder cacao plantation in Lampung Province. The research was conducted in Tanggamus and Pringsewu Regency, Lampung, from September to November 2015. A purposive sampling was used which obtained 32 samples of farmers as respondents from rehabilitated plantation with side-grafting technique and non-rehabilitated plantation, respectively. Data were analyzed using stochastic frontier analysis. The results indicated 4 factors affecting smallholders cacao production in Lampung Province, namely land, chemical fertilizer, family-labour, and rent-labour. Smallholder cacao plantation in Lampung Province was technically efficient (0.82) which affected by farmers’ age, farmers’ dependents, farmers group membership, and side-grafting application. Rehabilitated smallholder cacao plantation also showed higher level (ET=0.92) than non-rehabilitated one (ET=0.73). The research implicates on increasing smallholder cacao productivity in Lampung Province, especially the local government, to put more priorities in those factors significantly affecting smallholder cacao production, as well as to give support and facilitate plant rehabilitation program using side-grafting  methods.</em>

scholarly journals The Determinants of Technical Efficiency of Hazelnut Production in Azerbaijan: An Analysis of the Role of NGOs

2019 ◽  
Vol 11 (16) ◽  
pp. 4332 ◽  
Author(s):  
Orkhan Guliyev ◽  
Aijun Liu ◽  
Gershom Endelani Mwalupaso ◽  
Jarkko Niemi
Keyword(s):  
Technical Efficiency ◽  
Production Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Stakeholder Involvement ◽  
Cross Sectional ◽  
Frontier Analysis ◽  
Government Organizations ◽  
Good Organization

The role of non-government organizations (NGOs) has been commendable in promoting sustainable farming. Through mobilization of existing resources and provision of training to farmers on various agriculture subjects, NGOs could trigger increased productivity and agricultural sustainability. However, empirical evidence on this claim is limited and no study recognizes the supporting conditions required for NGO intervention to improve productivity. Cross-sectional data from hazelnut farmers in Azerbaijan are used to evaluate the role of NGO intervention in improving farmers’ technical efficiency. To this end, stochastic frontier analysis (SFA) is applied to study hazelnut farmers’ production efficiency. Three different measures are employed to estimate NGO intervention: Training, subsidy and, a combination of training and subsidy. The results indicate that NGO intervention is not significant in influencing technical efficiency. This is attributable to the absence of good organization, innovation orientation, accountability and stakeholder involvement and support which are the necessary supporting conditions facilitating an enabling environment for NGO intervention to improve farmers’ technical efficiency. Therefore, we recommend policy directed at addressing these issues in order to simultaneously enhance farmers’ productivity and improve the functioning of the NGOs. Beyond NGO intervention, encouraging farmers to specialize in hazelnut production and allocating more suitable land for hazelnut production will also improve farmers’ technical efficiency significantly.

scholarly journals The Effect of Employing Temporary Workers on Efficiency: Evidence From a Meta-Frontier Analysis

SAGE Open ◽  
2021 ◽  
Vol 11 (4) ◽  
pp. 215824402110581
Author(s):  
Koangsung Choi ◽  
Chung Choe ◽  
Daeho Lee
Keyword(s):  
Technical Efficiency ◽  
Statistical Methods ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Efficiency Analysis ◽  
Temporary Workers ◽  
Frontier Analysis ◽  
Heterogeneous Technologies ◽  
The Impact

This study examines the impact of employing temporary workers on technical efficiency (TE) by employing stochastic frontier analysis (SFA) and meta-frontier analysis (MFA). These two statistical methods yield slightly different, yet empirically meaningful, results. SFA—the more conventional methodology for conducting efficiency analysis—confirms that firms with temporary workers show a somewhat lower level of TE; while MFA, which allows a comparison of TE across groups with heterogeneous technologies, reveals that firms hiring temporary workers are technologically less efficient and have a more pronounced relative gap in efficiency. With the application of MFA, it was observed that firms hiring only temporary workers come farther to the meta-frontier than their counterparts.

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.

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