Technical Efficiency of Rice Production Using the Stochastic Frontier Analysis Approach: Case In East Java Province

2020 ◽  
Vol 15 (2) ◽  
pp. 170
Author(s):  
Fadilla Citra Melati ◽  
Yossita Prisma Mayninda
Keyword(s):  
Stochastic Frontier Analysis ◽  
Explanatory Variable ◽  
Stochastic Frontier ◽  
Rice Production ◽  
Staple Food ◽  
Frontier Analysis ◽  
The People ◽  
The Government ◽  
Food Needs ◽  
Practical Implications

 The aim of this study is to evaluate the efficiency of East Java rice production in 2018. This study uses a model for measuring the efficiency of stochastic frontier analysis (SFA). Empirical results of these findings indicate that the efficiency of rice production in East Java in 2018 was said to be very efficient in several districts and towns affected by the variable dry milled grain / GKG and irrigation variables, although there are still some districts and towns that cannot be said to be productive. Additionally, the explanatory variable of population growth affects the technical inefficiency of East Java rice production in 2018. Based on the results of this study's review, the practical implications for the government must continue to work to increase the scale and impact of efficiency on rice production, particularly on adding irrigated land to rice commodities, so that rice production can increase to the maximum and domestic food needs can be satisfied. Since the population of Indonesia continues to rise significantly, and rice is in fact a staple food for the people of Indonesia, rice production needs to be increased to ensure national social security. For this reason, it is necessary for the government to pay more attention to policies regarding the use and addition of paddy fields in order to keep optimum domestic rice production.

scholarly journals Comparison of Cambodian Rice Production Technical Efficiency at National and Household Level

2017 ◽  
Author(s):  
Sokvibol Kea ◽  
Hua Li ◽  
Linvolak Pich
Keyword(s):  
Technical Efficiency ◽  
Capital Investment ◽  
Stochastic Frontier Analysis ◽  
National Level ◽  
Stochastic Frontier ◽  
Rice Production ◽  
Frontier Analysis ◽  
Household Level ◽  
The Government ◽  
National Analysis

Rice is the most important food crop in Cambodia and its production is the most organized food production system in the country. The main objective of this study is to measure technical efficiency (TE) of Cambodian rice production and also trying to identify core influencing factors of rice TE at both national and household level, for explaining the possibilities of increasing productivity and profitability of rice, by using translog production function through Stochastic Frontier Analysis (SFA) model. Four-years dataset (2012-2015) generated from the government documents was utilized for the national analysis, while at household-level, the primary three-years data (2013-2015) collected from 301 rice farmers in three selected districts of Battambang province by structured questionnaires was applied. The results indicate that level of rice output varied according to the different level of capital investment in agricultural machineries, total actual harvested area, and technically fertilizers application within provinces, while level of household rice output varied according to the differences in efficiency of production processes, techniques, total annual harvested land, and technically application of fertilizers and pesticides of farmers. The overall mean TE was estimated at 78.4% (national-level) and 34% (household-level), indicates that rice output has the potential of being increased further by 21.6% (national production) and 66% (household) at the same level of inputs and technology if farmers had been technically efficient. The TE also recorded -7% decreasing rate at the national-level and -14.3% at household-level due to highly affected of natural disasters and various environmental and social factors during the study periods.

An Efficiency Analysis of Micro Units in a Fragile Zone: A Panel Study of the Firms in J&K, India

2021 ◽  
pp. 097492922110448
Author(s):  
Javaid Iqbal Khan ◽  
Mehak Majeed ◽  
Saeed Owais Mushtaq
Keyword(s):  
Stochastic Frontier Analysis ◽  
Small And Medium Enterprises ◽  
Panel Study ◽  
Stochastic Frontier ◽  
Negative Relationship ◽  
Jel Classification ◽  
Tobit Regression ◽  
Jammu And Kashmir ◽  
Frontier Analysis ◽  
The Government

The micro, small and medium enterprises (MSMEs) are the backbone of the community development in the developing world. In the fragile and backward regions, it is the micro enterprise that is considered to be the engine of growth and development. Being labour-intensive and requiring lesser capital input, the micro unit start-ups demand lesser investment in plant and machinery, attracting more and more potential entrepreneurs. Over the time, such units gain experience and knowledge becoming more efficient. This article studies the firms located in the fragile and geographically remote region of Jammu and Kashmir. The article uses a panel of 15 years from 2002 to 2016 based on the Annual Survey of Industries data. Using the Stochastic Frontier Analysis, the article studies the MSMEs and the micro units. From the post-estimation, technical efficiency scores are attained for both MSMEs and the micro units. The results reveal that the micro units are more efficient than the MSMEs in general. Tobit regression is used to estimate the technical inefficiency model to determine the factors that contribute to the inefficiency present in the micro units. The results show that there is a negative relationship between the efficiency of the micro unit firms and the asset-liability ratio and the loan-liability ratio, while there is a positive relationship between the private ownership of the firm and the efficiency level. Age of the firm is considered separately to validate the ‘learning theory’ by Jovanovic. The article concludes by suggesting that the government must provide adequate boost and a big-push to the micro units in order to eradicate the widespread unemployment and fragility in the region. JEL Classification: F61, L25

scholarly journals Closing yield gaps in Colombian direct seeding rice systems: a stochastic frontier analysis

2020 ◽  
Vol 38 (1) ◽  
pp. 110-119
Author(s):  
David Arango-Londoño ◽  
Julián Ramírez-Villegas ◽  
Camilo Barrios-Pérez ◽  
Osana Bonilla-Findji ◽  
Andy Jarvis ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Rice Production ◽  
Direct Seeding ◽  
Limiting Factors ◽  
Nitrogen Application ◽  
Irrigated Rice ◽  
Frontier Analysis ◽  
Yield Gaps

Rice is one of the most important crops in terms of harvested area and food security both globally and for Colombia. Improvement of technical efficiency levels in rice production in order to close yield gaps in a context in which rice demand increases, natural resources are depleted, and where there are growing expectations about both climate changes and trade agreements is likely the most important challenge that farmers confront. This research assessed the main management factors that limit both rice crop productivity and the likely drivers of non-optimal technical efficiency levels (a proxy for yield gaps). This study focused on both upland and irrigated direct seeding systems across a variety of environments in Colombia. Stochastic frontier models were used to integrate microeconomic theory and empirical regression analysis in conjunction with a large commercial rice production database developed by the Colombian rice growers’ federation (Fedearroz). A large variation was found in technical efficiency (from 40 to 95%) levels for both upland and irrigated systems, and major differences were obtained in the limiting factors of the two systems (e.g. seed availability, variety type, market accessibility, fertilizer type, and use rate). This suggests both substantial and varied opportunities for improvements in current technical efficiency levels. Across systems, the correct choice of variety was identified as a common key factorfor maximizing yield for a particular environment. For upland systems, optimal choices were F174 and F2000, whereas for irrigated rice F473 was found to produce the highest yield. Additionally, numerical analysis suggests a yield impact of ca. 0.18% for each 1% increase in the nitrogen application rate for upland systems. For irrigated rice, phosphorous rather than nitrogen application rates were found to be more important. Since our analysis is based on farm-scale commercial production data, we argue that once our results are brought to consensus with local extension agents, technicians and agronomists, then management recommendations for closing yield gaps can be used to improve rice productivity.

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 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 OF PADDY’S FARMING IN VARIOUS TYPES OF PADDY’S SEEDS IN INDONESIA

2020 ◽  
Vol 13 (3) ◽  
pp. 286
Author(s):  
Venessa Vasthi Winata ◽  
M. Rondhi ◽  
Yasuhiro Mori ◽  
Takumi Kondo
Keyword(s):  
Technical Efficiency ◽  
Formal Education ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Secondary Data ◽  
Household Survey ◽  
Rice Farming ◽  
Frontier Analysis ◽  
Rice Seeds ◽  
The Government

The increasing need for food along with increasing population is one of the problems that must be resolved by Indonesia nation. The government is trying to increase rice production and productivity by using certified seeds. Certified seeds is expected to affect technical efficiency of rice farming. The objectives of this studies are to analyze the level of technical efficiency and to identify the factors that influence the technical efficiency of rice farming in various types of main sources of rice seeds in Indonesia. The study uses secondary data that obtained from Central Bureau of Statistic (BPS) as a results from the 2014 Rice Plant Business Household Survey (SPD 2014). Data were analyzed using stochastic frontier. The results showed that the average technical efficiency level achieved by farmers in rice farming is 0,656 or less than 0,70 (<0,70) so it can be said that rice farming in Indonesia is still technically inefficient. Factors that affecting the technical efficiency of rice farming in various types of main sources of rice seeds in Indonesia were age, formal education, dummy participation of agricultural extension, and dummy certified seeds.  Keywords: certified seeds, rice farming, stochastic frontier analysis, technical efficiency, non-certified seeds

scholarly journals Productivity and Competitiveness of Garlic Production in Pasuquin, Ilocos Norte, Philippines

2021 ◽  
Vol 18 (1) ◽  
pp. 50-63
Author(s):  
Ceptryl S. Mina ◽  
◽  
Salvador P. Catelo ◽  
Carolyn D. Jimenez ◽  
◽  
...  
Keyword(s):  
Stochastic Frontier Analysis ◽  
Group Membership ◽  
Stochastic Frontier ◽  
The Philippines ◽  
Farm Size ◽  
Cost Ratio ◽  
Frontier Analysis ◽  
Use Of Resources ◽  
The Government ◽  
Productivity And Competitiveness

A total of 124 garlic farmers were selected and interviewed to evaluate the productivity and competitiveness of garlic farming in Pasuquin, Ilocos Norte, Philippines. The Technical efficiency (TE) was estimated using a stochastic frontier analysis or SFA based on the Cobb-Douglas production functional form, while the competitiveness of local garlic production was determined based on the ratio between import parity price and domestic resource cost ratio. The mean TE was 81 percent while the estimated gamma value was 0.92. These values indicate that 92 percent of the variation in garlic output is due to inefficiency factors and that total garlic output can further be increased with efficient use of resources. The analysis further revealed that seed rate and insecticides were statistically significant production factors. The results also show that group membership, farm size, and distance to the farm-to-market road (FMR) were statistically significant. Inefficiency factors and distance to the FMR have positive relationships while group membership and farm size have negative relationships with the garlic output. Price and cost ratios show that garlic from Pasuquin, Ilocos Norte could not yet compete with imported garlic from China in 2018. However, simulations show that if the Philippines can increase its national average by at least 20 percent (4.08 mt/ ha), it can have a competitive advantage in garlic production. The results of the analyses highlight the need to revisit the output and input policies and programs of the government to increase the productivity and competitiveness of garlic farming in Ilocos Norte. These programs include investing in quality seed, joining farmers’ organizations, and providing better farming infrastructure.

scholarly journals The Role of Agricultural Extension Worker and Babinsa TNI According to the Farmer's Perspective on The Implementation of Rice UPSUS Program in Gorontalo

2019 ◽  
Vol 15 (2) ◽  
pp. 275-285
Author(s):  
Jaka Sumarno ◽  
Awaludin Hipi ◽  
Ari Widya Handayani ◽  
Ari Abdul Rouf
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Simple Random Sampling ◽  
Measuring Method ◽  
Agricultural Extension ◽  
Field Extension ◽  
Rice Production ◽  
Frontier Analysis

This study aims to analyze the role of Babinsa-TNI and field extension worker (PPL) assistance to the implementation of UPSUS programs and the success of UPSUS targets (increased production). The study was conducted at the UPSUS rice production center in Gorontalo Province, i.e; Bone Bolango District, Gorontalo Regency and North Gorontalo Regency. Sampling was done by simple random sampling method involving 162 respondent farmers during 2017. The measuring method to the role of Babinsa-TNI and field extension worker wasdone by Work Achievement Value Standard. The influence of Babinsa-TNI and field extension workerwas analyzed using the production analysis method usingproduction function of Cobb-Douglas stochastic frontier analysis. The results showed that the average Babinsa-TNI and field extension workerhad good performance in terms of high scoring value indicator. The Babinsa-TNI assistance in implementing the UPSUS program has a significant effect on increasing production and technical efficiency of rice production. The assistance of agricultural extension worker also has a positive effect on increasing production and technical efficiency of rice production.

scholarly journals Analisis Efisiensi Usahatani Padi di Jawa dan Luar Jawa, Kajian Prospek Peningkatan Produksi Padi Nasional

2021 ◽  
Vol 9 (2) ◽  
pp. 143-153
Author(s):  
Rivani Hilalullaily ◽  
Nunung Kusnadi ◽  
Dwi Rachmina
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Agricultural Land ◽  
Stochastic Frontier ◽  
Rice Production ◽  
Frontier Analysis ◽  
Production Factors ◽  
Rice Consumption ◽  
Farmer Education ◽  
Almost All

Rice can grow in almost all of the islands in Indonesia, but 57 per cent of it was produced in Java, which is less than 10 per cent of the national area in Indonesia. To anticipate the increasing need for rice consumption, it is important to study the prospects for increasing national rice production, especially by utilizing the potential of agricultural land outside Java island. The purpose of this study was to identify the prospects for the development of national rice, especially outside Java island, from the perspective of rice production factors and technical efficiency at the farm level. Using stochastic frontier analysis, the translog production function showed that the increasing use of inputs (land, seeds, fertilizers, pesticides) will not significantly increase rice production both in Java and outside Java island (inelastic). Technical efficiency analysis indicated that rice production in Java and outside Java island was 28 and 39 per cent below its frontier, respectively.  Further analysis showed that irrigation, land status, farmer groups, and farmer education were significantly improved technical efficiency. This study concluded that the potential to increase rice production by increasing technical efficiency outside of Java island was greater than in Java island. However, increasing the efficiency of rice production outside Java may be constrained by the availability of irrigated agricultural land. To significantly increase national rice production both in Java and outside Java island, a breakthrough in new rice production technology is needed.

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