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 Technical Efficiency and Small Scale Maize Producers in Mwanza Region: A Stochastic Frontier Analysis

2021 ◽  
Vol 9 (3) ◽  
Author(s):  
Mukole Kongolo
Keyword(s):  
Technical Efficiency ◽  
Best Practice ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Likelihood Estimation ◽  
Estimation Procedure ◽  
Farm Size ◽  
Small Scale ◽  
Maize Production ◽  
Frontier Analysis

This study measured technical efficiency and its determinants in maize production by small-scale producers in Mwanza region, using a stochastic frontier production function approach. A randomly selected sample of participants in the two districts was used. The Maximum Likelihood estimation procedure was followed to obtain the determinants of technical efficiency and technical efficiency levels of small-scale maize producers. The minimum and maximum values of technical efficiency were between 20% and 91%, indicating that the least practices of specific producer operates at a minimum level of 20%, while the best practice producers  operate  at 91% technical efficiency  level respectively. The summary results of the mean technical efficiency was 63%. The main determinants of technical efficiency were labour, farm size, producer’s experience, producer’s age, family size which were all positive and statistically significant. The findings suggest that the average efficiency of small-scale maize producers could be improved by 37% through better use of existing resources and technology. These findings highlight the need for action by government to assist small-scale maize producers improve efficiency.

scholarly journals EFFECT OF GOVERNMENT SUBSIDIZATION ON CHINESE INDUSTRIAL FIRMS’ TECHNOLOGICAL INNOVATION EFFICIENCY: A STOCHASTIC FRONTIER ANALYSIS

2016 ◽  
Vol 17 (2) ◽  
pp. 187-200 ◽  
Author(s):  
Qi HUANG ◽  
Marshall S. JIANG ◽  
Jianjun MIAO
Keyword(s):  
Technological Innovation ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Small Scale ◽  
Industrial Firms ◽  
Frontier Analysis ◽  
Government Subsidies ◽  
Industrial Enterprises ◽  
Statistical Yearbook ◽  
The Relationship

This study aims to gain a better understanding of how effective government subsidization is in helping foster firms’ innovation. Drawing on the exploration/exploita- tion perspective and based on data collected from Statistical Yearbook on Science and Technology Activities of Industrial Enterprises, we look into the relationship between gov- ernment subsidization and Chinese firms’ innovation efficiency by applying a stochastic frontier analysis. The results show that when government subsidies are provided in small scale, firms’ innovation efficiency decreases; only when government subsidies increase to a certain scale, does firms’ innovation efficiency start to increase. We suggest that govern- ment subsidization would generate better innovation performance should it concentrate on a smaller number of firms at one time. As existing research is still inconclusive regarding the relationship between government subsidization and firms’ technological innovation output, we shed light on the issue by revealing a “U-shaped” relationship between the two.

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 Women Participation: A Productivity Strategy in Rice Production

2020 ◽  
Vol 12 (7) ◽  
pp. 2870 ◽  
Author(s):  
Abubakar Rasheed ◽  
Gershom Endelani Mwalupaso ◽  
Qasir Abbas ◽  
Xu Tian ◽  
Rafay Waseem
Keyword(s):  
Technical Efficiency ◽  
Rural Economy ◽  
Poverty Reduction ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Rice Production ◽  
Frontier Analysis ◽  
Women's Participation ◽  
Development Goals

Agriculture is an important engine for economic growth and a vigorous driver of poverty reduction in developing countries. In Pakistan, rice production is one of the most essential sectors. However, it has been underperforming, largely because of low women’s participation, which is often a crucial resource in agriculture and the rural economy. Unfortunately, previous studies have seldom recognized and emphasized the role of women in triggering agricultural and rural development. We address this research gap using 300 farm households’ survey data forms collected from Pakistan farmers by applying the stochastic frontier analysis. The results indicate that women’s participation is associated with higher labor/land ratio, land productivity, and finally improved technical efficiency. Precisely, women’s participation increased technical efficiency (TE) by 47.3%. Interestingly, in view of previous studies, this evidence is not sporadic. Overall, our study provides some evidence to promote women’s participation in rice production, as such empowerment of women holds great potential to enhance agricultural production, which is consistent with the aim of sustainable development goals (SDGs).

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 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 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>

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.

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