Technical Efficiency of Small Scale Farmers: An Application of the Stochastic Frontier Production Function on Fish Farmers in Ibadan Metropolis

2008 ◽  
Author(s):  
Osayanmon Wellington Osawe ◽  
A. J. Adeqeye ◽  
Bolarin T. Omonona
Author(s):  
Galih Sudrajat ◽  
Sri Mulatsih ◽  
Alla Asmara

The characteristics of beef cattle business in West Nusa Tenggara province which are dominated by small-scale farmers by semi-intensive and extensive systems are relatively inefficient. The research objectives were to identify the factors that influenced the level of production and analyze the technical efficiency of beef cattle production in West Nusa Tenggara. The research used cross section data taken from the results of the 2014 Livestock Household Survey (ST2013-STU) conducted by the Indonesia Central Bureau of Statistic. The analytical method used in this study was the stochastic frontier production function. The analysis results of the stochastic frontier production function showed that forage fodder input, concentrates, labour, animal health care and herd size are influential factors on beef cattle production. The average level of technical efficiency of beef cattle farmers in West Nusa Tenggara is 0.705. This shows that the average productivity achieved is 70.5 percent, which means that production can still be increased by 29.5 percent to achieve maximum productivity. The policy to reduce the level of technical inefficiency is by providing facilitation to farmers in order to change their production systems from extensive to intensive or semi-intensive.


Author(s):  
Nurhayatin Nufus

This research  aims  to analyses  factors  influence  on production  and  resources  allocation  of soybeans  by farmer  at  West Lombok.  Production  function  was estimated  from survey data and technical  efficiency  was used to indicate  farm management  level  through maximum  likelihood,  which  was transformed  into frontier stochastic  production  function.  The land  size,  fertilizer  (urea and  TSP), labor  and pesticide  influence  the production  of soybean  at site.  The technical efficciency  level of Soybean fann was 95,6 percent   The  usage of TSP and pesticide reached allocative efficiency while urea and seeds were al/ocative efficiency yet Key words:  technical  effICiency, allocative  effICiency, and stochastic  frontier  production  function.


Author(s):  
Ngatindriatun Ngatindriatun ◽  
Hertiana Ikasari

Batik is known since 17th century. In 2009, UNESCO took batik as the world heritage. Likewise, Batik Semarang. Batik Semarang is unpopular than other batik’s products on Central Java. Their productivity is on small scale and only for environment surroundings. The small productivity causes the high price on their product selling. The aims of this research are to estimate the function of production and technical efficiency of batik Semarang. Sample is 67 owners of small scale batik Semarang industry. Analysis instrument is Stochastic Frontier Production Function. The measuring of production efficiency are material, support material, labor force, instruments, kerosene, firewood, and large of trade location. The result shows that free variable is found significant and have an appropriate signal. Other result shows that technical efficiency of batik Semarang industry is 88, 9%


2019 ◽  
Vol 11 (19) ◽  
pp. 5225
Author(s):  
Furong Chen ◽  
Yifu Zhao

This paper investigated the determinants, especially labor transformation, and differences of technical efficiency between main and non-main grain-producing area in China based on a panel data from 30 provinces in the period of 2001–2017. Stochastic frontier production function was used to estimate the level of technical efficiency and the marginal productivity of different inputs. The estimated results showed that land is the most important factor to improve China’s grain output, followed by fertilizers, labor, and machinery inputs. There was a significant 4.6 percent gap of production efficiency between main and non-main producing provinces. Influence of rural labor transformation was confirmed to be positive to improve technical efficiency.


2012 ◽  
Vol 14 (3) ◽  
pp. 317-338 ◽  
Author(s):  
M. Abdul Majid Ikram ◽  
Andry Prasmuko ◽  
Donni Fajar Anugerah ◽  
Ina Nurmalia Kurniati

This paper analyzes the contributon of primary input; capital anda labor, on sectoral performance in Indonesia. The analysis cover sall sectors both in national and regional level, and also the dynamic of input efficiency across period. Using stochastic frontier production function approach, this paper found the aggregate share of capital is 0.20 and 0.34 for labor; conforming the dominance of labor. The highest three technical efficiency is Mining sector (88.65%), Manufacture (70.47%) and Financial (65.93%), while the lowest one is Electric, Gas and Water (25.38%).Keywords: efficiency, stochastic frontier, productivity, Indonesia.JEL Classification: D24, J24, O18


2020 ◽  
Vol 51 (6) ◽  
pp. 1634-1643
Author(s):  
Al-Hachami & et al.

This study aimed to estimate the stochastic frontier production function and the inefficiency function and technical efficiency of potato production by using cross-section data collected from 173 potato farms that were randomly selected in Baghdad province/ Yusifiyah for production season 2016. The results showed that 90.6% of inefficiency in production was due to technical inefficiency. Also, there was a significant relationship between the variables of inefficiency function and the inefficiency of farms. The values of the parameters of the stochastic frontier production function were positive and significant for both human work hours and the amount of seeds. However, the parameter of DAP fertilizer was negative and significant. The estimation of the technical inefficiency function showed that its parameters were significant for both the local seed provider and the agricultural season (fall), while the parameters experience in growing potatoes and the number of irrigations were significant and their impact was negative on the inefficiency. The results also showed that the technical efficiency of the study sample (50%) on average. The researchers recommended the necessity of providing imported seed tubers for the increased productivity in dunum to achieve technical efficiency.


Author(s):  
N. J Dhanesh

Technological change and efficiency improvement are important sources of productivity growth in any economy. The concept of technical efficiency (TE) is based on input and output relationships. Technical inefficiency arises when actual or observed output from a given input mix is less than a possible mix. The analysis of technical efficiency involves the assessment of the degree to which the production technologies are utilized. The present investigation on “Formation and efficient estimation of stochastic frontier production functions” was carried out in the Department of Agricultural Statistics, College of Horticulture, Vellanikkara, during 2010 -13. To assess the present economics of pepper cultivation, to formulate a new stochastic frontier production function and to compare different stochastic frontier production functions. The secondary data on the area of holdings, number of vines, yield, expenses for machinery, labour, manure, and other expenses for the cultivation of the major spice pepper collected from the Department of Plantation Crops and Spices, College of Horticulture, Vellanikkara were used for the analysis. For the stochastic frontier production model to be realistic, an exact measurement of the cost of the inputs and the realized output is extremely necessary. Very few farmers keep records of the expenditure incurred on the various inputs and rarely the output realized. Vegetable crops have a short duration. So the farmer will be in a position to give realistic figures regarding the various inputs as also the outputs. As regards plantation crops, there will be a lag right from the establishment of the crop to the steady bearing stage. Therefore, it will be very difficult to trace back the exact cost, as no records would be available about the costs incurred. Therefore, a rapid estimation survey is the only feasibility wherein simultaneous estimation of the costs involved from the nursery through the various stages of growth can be observed. Since a farmer who is already having a steady-bearing crop would have incurred lesser costs through the previous stages of growth of the crop, it is most feasible to use the concept of present worth to arrive at the exact costs of previous stages of the crop. The stochastic frontier analysis was done using the present value (PV) and the present cost.


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