Determinants of Technical Efficiency of Small Scale Sunflower Oil Processing Firms in Tanzania: One Stage Stochastic Frontier Approach

2018 ◽  
Vol 5 (1) ◽  
pp. 79-86
Author(s):  
Anastasia R Njiku ◽  
Ganka D Nyamsogoro
Keyword(s):  
Technical Efficiency ◽  
Sunflower Oil ◽  
Stochastic Frontier ◽  
Small Scale ◽  
Stochastic Frontier Approach ◽  
Oil Processing ◽  
One Stage

scholarly journals Agricultural Technical Efficiency of Smallholder Farmers in Ethiopia: A Stochastic Frontier Approach

Land ◽  
2021 ◽  
Vol 10 (3) ◽  
pp. 246
Author(s):  
Markose Chekol Zewdie ◽  
Michele Moretti ◽  
Daregot Berihun Tenessa ◽  
Zemen Ayalew Ayele ◽  
Jan Nyssen ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Crop Production ◽  
Large Scale ◽  
Positive Impact ◽  
Smallholder Farmers ◽  
Stochastic Frontier ◽  
Crop Productivity ◽  
Small Scale ◽  
Stochastic Frontier Approach ◽  
Small Scale Irrigation

In the past decade, to improve crop production and productivity, Ethiopia has embarked on an ambitious irrigation farming expansion program and has introduced new large- and small-scale irrigation initiatives. However, in Ethiopia, poverty remains a challenge, and crop productivity per unit area of land is very low. Literature on the technical efficiency (TE) of large-scale and small-scale irrigation user farmers as compared to the non-user farmers in Ethiopia is also limited. Investigating smallholder farmers’ TE level and its principal determinants is very important to increase crop production and productivity and to improve smallholder farmers’ livelihood and food security. Using 1026 household-level cross-section data, this study adopts a technology flexible stochastic frontier approach to examine agricultural TE of large-scale irrigation users, small-scale irrigation users and non-user farmers in Ethiopia. The results indicate that, due to poor extension services and old-style agronomic practices, the mean TE of farmers is very low (44.33%), implying that there is a wider room for increasing crop production in the study areas through increasing the TE of smallholder farmers without additional investment in novel agricultural technologies. Results also show that large-scale irrigation user farmers (21.05%) are less technically efficient than small-scale irrigation user farmers (60.29%). However, improving irrigation infrastructure shifts the frontier up and has a positive impact on smallholder farmers’ output.

scholarly journals Nexus between Technical Efficiency and Financial Sustainability: Evidence from Small Scale Sunflower Oil Processing Firms in Tanzania

2019 ◽  
pp. 1-11
Author(s):  
Anastasia R. Njiku ◽  
Ganka D. Nyamsogoro
Keyword(s):  
Technical Efficiency ◽  
Sunflower Oil ◽  
Stochastic Frontier Analysis ◽  
Developing Economies ◽  
Multiple Linear Regression Model ◽  
Small Scale ◽  
Financial Sustainability ◽  
Firm Level ◽  
Frontier Analysis ◽  
Oil Processing

Studies on technical efficiency and financial sustainability of firms respectively, have captured the attention of many scholars in both developed and developing economies over several decades. There are patchy empirical evidences however, that link technical efficiency and financial sustainability of small scale agro-processing firms in the context of developing economies like Tanzania. Sunflower Oil Processing Firms are of no exception as the sub-sector is dominated by small scale firms with no well documented relationship between technical efficiency and their financial sustainability. This study was set to determine the relationship between technical efficiency and financial sustainability while controlling for staff productivity. The study used firm level cross-sectional data collected from 219 sunflower oil processing firms randomly selected in Dodoma and Singida regions. A Multiple Linear Regression Model was used in analysing the data. Technical efficiency scores were estimated using Stochastic Frontier Analysis (SFA) model. It was found that there exists a relationship between technical efficiency and financial sustainability of sunflower oil processing firms in Tanzania. The higher the technical efficiency the more Sunflower Oil Processing Firms will be financially sustainable. The findings of this study imply that improving technical efficiency levels is a pre-requisite for financial sustainability of Sunflower oil processing firms in Tanzania.

scholarly journals EFFICIENCY OF APPLE SMALL-SCALE FARMING IN ALBANIA-A STOCHASTIC FRONTIER APPROACH

New Medit ◽  
2019 ◽  
Vol 18 (2) ◽  
pp. 57-70
Author(s):  
Myslym Osmani ◽  
Arben Kambo
Keyword(s):  
Technical Efficiency ◽  
Production Efficiency ◽  
Stochastic Frontier ◽  
Modern Technology ◽  
Small Scale ◽  
Negative Effects ◽  
Stochastic Frontier Approach ◽  
Factors Affecting ◽  
Apple Production ◽  
Major Factors

Apple production sector in Albania is growing very fast in Albania but research about apple production efficiency is almost absent. This research aims at assessing the technical efficiency and factors affecting it for the Albanian apple farms. Data of 150 randomly selected farmers in the area of Korça region are analyzed with the Stochastic Frontier Approach. The average level of technical efficiency results 88%, with 12% potential for improvement. The efficiency gap is about 21%. Major factors with positive effect on technical efficiency result the access to advisory services, average plots size, number of apple plots; education and proportion of orchards under modern technology have negative effects; age, and farmer’s experience are not significant. Measures to support planting of apples should take into account the size of plots. There is much space to improve extension services to farmers, so adequate policies are needed to support farmers with training, information to improve their skills and knowledge, to ensure they are supplied with quality inputs and technologies at reasonable prices, and policies to improve farmers access to markets.

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.

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