scholarly journals Analysis of Factors Affecting the Technical Inefficiency on Indonesian Palm Oil Plantation

2021 ◽  
Author(s):  
Irawati Abdul ◽  
Dyah Wulan Sari ◽  
Tri Haryanto
Keyword(s):  
Production Function ◽  
Palm Oil ◽  
Household Income ◽  
Stochastic Frontier Analysis ◽  
Seed Quality ◽  
Stochastic Frontier ◽  
Technical Inefficiency ◽  
Factors Affecting ◽  
Frontier Analysis ◽  
Agricultural Business

Abstract This study aims to analyze the factors affecting the technical inefficiency of palm oil plantations in Indonesia by using the stochastic frontier analysis based on the translog production function. The data used in this study are taken from the Central Statistics Agency (Agricultural Business Household Income Survey) in 2013. The number of samples used was 14367 farmers. The results revealed that there is still to increase in the efficiency of palm oil plantations in Indonesia. The production function suggests that increasing the number of trees can help to increase the number of outputs. Additionally, education, age, planting system, seed quality, extension service, and plasma farmer significantly influence the technical efficiency of palm oil plantation.

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.

A Stochastic Frontier Analysis of Exporting Small and Medium Sized Enterprises in India

2016 ◽  
Vol 7 (3) ◽  
pp. 1-23
Author(s):  
Manoj Kumar
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Returns To Scale ◽  
Key Factors ◽  
Technical Inefficiency ◽  
Frontier Analysis ◽  
Efficiency Performance ◽  
Size Firm ◽  
Almost All

This study employs a stochastic frontier analysis (SFA) and technical inefficiency effects model to predict the technical efficiency of 3,168 Indian manufacturing and exporting SMEs, analyze their returns to scale and key factors impacting on their technical efficiency. Indian manufacturing and exporting SMEs extensively rely on labor rather than capital to increase their output, including almost all exporting SME groups, except those exporting to North & South America. The production of Indian manufacturing SMEs exporting to Oceania, however, has increasing returns to scale (1.1965). The inefficiency effects model reveals that firm size, firm age, foreign ownership, location and government assistance are firm-specific factors that significantly affect the technical inefficiency of production. Finally, evidence-based policies are also provided to facilitate improvement in the technical efficiency performance of Indian manufacturing and exporting SMEs.

scholarly journals Sources of Inefficiency in Small-Scale Irrigation in Ethiopia: A Stochastic Frontier Analysis

2021 ◽  
Author(s):  
Teshager Sisha ◽  
Surafel Dillie
Keyword(s):  
Rural Communities ◽  
Poverty Reduction ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Household Head ◽  
Small Scale ◽  
Factors Affecting ◽  
Frontier Analysis ◽  
Irrigation Technologies ◽  
Small Scale Irrigation

Abstract Increased production, food security, poverty reduction, and rural economic development can be supported by increasing efficiency in the use of scarce resources and technologies. Promoting small-scale irrigation practices may provide opportunities to improve the efficient utilization of land and labor. This paper assesses the extent of technical efficiencies of two household irrigation technologies: rope & washer and pulley practiced by farmers in two pilot areas of rural communities in Ethiopia. Stochastic frontier analysis (SFA) was used to estimate efficiency levels and identify the factors affecting inefficiencies. Labor and land are found to have contributed a greater share in the quantity of production of the crops under study. Plough repetition and experience in irrigation also contributed significantly to increased output. The results obtained from the stochastic frontier analysis indicate that farmers are operating at a significantly lower mean efficiency level of 70%, indicating the existence of room for increased production without additional investment. Distance to the nearest market, female household head, higher dependency ratio and using rope & washer (compared to pulley) increases the likelihood of being inefficient, whereas higher educational attainment of the head of the household and irrigation experience reduces the probability of inefficiency.

scholarly journals A Stochastic Frontier Approach to Measuring Inefficiency of Local Communities in Bosnia and Herzegovina

2021 ◽  
Vol 16 (1) ◽  
pp. 18-29
Author(s):  
Lejla Lazović-Pita ◽  
Lamija Šćeta
Keyword(s):  
Bosnia And Herzegovina ◽  
Local Community ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Local Communities ◽  
Data Availability ◽  
Future Research ◽  
Technical Inefficiency ◽  
Frontier Analysis ◽  
Selection Of Variables

Abstract The significance and methods of measuring inefficiency of local communities has been gaining prominence in the last decade. The purpose of this paper is to empirically investigate the level of technical inefficiency in the sample of local communities in Bosnia and Herzegovina (BiH) for the year of 2017. We implement parametric stochastic frontier analysis (SFA) to conduct an input-oriented stochastic parametric approach to measuring technical inefficiency of local communities in BiH. The results of our work are complementary to previous research indicating relative technical inefficiency of local communities in BiH. On average, BiH local communities’ total expenditures can be reduced by 46.8 percent without reducing output levels to achieve the result of the local community on the best practice frontier. Since our analysis and selection of variables are driven by data availability, the future research plans to include more variables.

Effects of partial quantity rationing of credit on technical efficiency of Boro rice growers in Bangladesh: Application of the stochastic frontier model

2021 ◽  
pp. 501
Author(s):  
Md Ghulam Rabbany ◽  
Yasir Mehmood ◽  
Fazlul Hoque ◽  
Tanwne Sarker ◽  
Arshad Ahmad Khan ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Seed Quality ◽  
Stochastic Frontier ◽  
Farm Labor ◽  
Negative Effects ◽  
Frontier Analysis ◽  
Credit Data ◽  
Two Stages ◽  
Boro Rice

In this study, we analyzed the effects of the partial quantity rationing of credit on the technical efficiency of Boro rice growers in the Pabna district of Bangladesh. Before conducting the field survey, we designed a theoretical framework and identified farm households affected by the partial quantity rationing of credit. Data were collected from 174 Boro rice growers and analyzed in two stages, where the technical efficiency of Boro rice growers was assessed using stochastic frontier analysis, and the inefficiency effects model was then applied to evaluate determinants of the technical efficiency. The mean technical efficiency of Boro rice growers was 78%, which indicates that their technical efficiency was 22% beyond the production frontier curve. The variables comprising the household head’s age, education level, seed quality, formal training, access to the market, farm labor, tillage cost, fertilizer cost, irrigation cost, and price of seedlings significantly affected the technical efficiency of rice growers. The variables of interest comprising the rate and partial quantity rationing of credit had significant negative effects on the technical efficiency of rice growers. The findings obtained in this study will help to enhance the actual production level using the available resources and improve the food security situation in Bangladesh.

scholarly journals EFFICIENCY OF NON-LIFE INSURANCE COMPANIES AND ITS DETERMINANTS

2018 ◽  
Vol 17 (4) ◽  
pp. 87-95
Author(s):  
Sylwester Kozak
Keyword(s):  
Life Insurance ◽  
Cost Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Insurance Companies ◽  
Lower Efficiency ◽  
Factors Affecting ◽  
Frontier Analysis ◽  
Insurance Sector ◽  
Acquisition Costs

The research evaluates efficiency of non-life insurance companies in Poland from 2002 till 2016 and determines factors affecting it. The stochastic frontier analysis (SFA) method was applied for estimating cost efficiency of 29 insurance companies and the panel data Tobit model for identification of the efficiency determinants. The results of the research showed significant volatility of companies’ efficiency scores changing from 62.5% in 2002 to 65.8% in 2007 and 59.4% in 2016. Efficiency of most companies was low and the average for the sector was driven by a small group of the most efficient entities. The efficiency was positively impacted by the value of company’s gross written premium and acquisition costs, an increase in the profitability and the average wage in the non-life insurance sector and a decrease in the sector’s concentration. Companies operated more efficiently in the environment of declining rates of the economic growth and inflation. These relationships were relevant for the entire sector, as well as for groups of companies characterized with higher and lower efficiency.

scholarly journals Firm-level Inefficiency in Post-transition Economies

2021 ◽  
Vol 7 (1) ◽  
pp. 34-43
Author(s):  
Valerija Botrić
Keyword(s):  
Transition Economies ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Innovation Activity ◽  
Firm Level ◽  
Technical Inefficiency ◽  
Frontier Analysis ◽  
Creative Commons ◽  
Government Sector ◽  
The Government

Firms in post-transition economies are frequently considered less efficient than those in more advanced market economies. By relying on the World Bank Enterprise Survey for the year 2019, firm-level technical inefficiency is estimated by the stochastic frontier analysis method for a sample of European post-transition countries. To be precise, the analysis included Albania, Bosnia and Herzegovina, Croatia, Czechia, Estonia, North Macedonia, Poland, Serbia, and Slovenia. Furthermore, the factors contributing to the firm-level inefficiency are explored in a comparative setting. The effects of the international orientation of the firm, foreign ownership, doing business with the government sector, presence of informal competitors, innovation activity, manager experience, and the age of the firm on the technical inefficiency are estimated. Results show that although some factors are common to a subsample of countries, not a single factor is significant in all the analysed economies. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

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>

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