scholarly journals A Technical Efficiency Analysis of Financial Subsidies Allocated by the Cap in Romanian Farms Using Stochastic Frontier Analysis

2020 ◽  
Vol 12 (4) ◽  
pp. 494-505
Author(s):  
Nicola Galluzzo
Keyword(s):  
Technical Efficiency ◽  
Agricultural Policy ◽  
Rural Areas ◽  
Common Agricultural Policy ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Frontier Analysis ◽  
Decoupled Payments ◽  
The Common ◽  
The Impact

AbstractThe Common Agricultural Policy (CAP) has undergone radical changes as a consequence of international agreements. Through a parametric approach based on Stochastic Frontier Analysis, it has been possible to estimate the impact of financial subsidies allocated under the Common Agricultural Policy for the period from 2007 to 2017 in the framework of the first and second pillars to Romanian farms that are part of the FADN dataset. The findings have revealed the positive effect of financial subsidies allocated to disadvantaged rural areas in increasing technical efficiency, and a modest impact of decoupled payments disbursed under the first pillar of the CAP on the Romanian farms investigated.

scholarly journals Estimation of technical efficiency of Czech farms operating in less favoured areas

2019 ◽  
Vol 65 (No. 10) ◽  
pp. 445-453
Author(s):  
Tamara Rudinskaya ◽  
Tomas Hlavsa ◽  
Martin Hruska
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Positive Impact ◽  
Stochastic Frontier ◽  
Agricultural Area ◽  
Farm Size ◽  
Identification System ◽  
Accounting Data ◽  
Frontier Analysis ◽  
The Impact

This paper deals with the technical efficiency analysis of farms in the Czech Republic. The empirical analysis provides an evaluation of technical efficiency with regard to the farm size, farm specialisation, and farm location. Accounting data of Czech farms from the Albertina database for the years 2011–2015 were used for the analysis. The data were classified by the utilised agricultural area and location of the farm expressed as a less favoured area type from the Land Parcel Identification System (LPIS) database. Research was conducted using the translogarithmic production function and Stochastic Frontier Analysis. The results indicate positive impact of farm size, expressed by utilised agricultural area, on technical efficiency. The analysis of the impact of farm specialisation on technical efficiency verified that farms specialised on animal production are more efficient. The lowest technical efficiency is shown by farms situated in mountainous Less Favoured Areas (LFAs), the highest technical efficiency by farms located in non-LFA regions.

scholarly journals EFISIENSI TEKNIS, PERTUMBUHAN TEKNOLOGI DAN TOTAL FAKTOR PRODUKTIVITAS PADA INDUSTRI MENENGAH DAN BESAR DI INDONESIA

2018 ◽  
Vol 6 (1) ◽  
pp. 1-20
Author(s):  
Muhammad Fazri ◽  
Hermanto Siregar ◽  
Nunung Nuryartono
Keyword(s):  
Technical Efficiency ◽  
Manufacturing Industry ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Reform Era ◽  
Frontier Analysis ◽  
Tfp Growth ◽  
Technological Growth ◽  
Before And After ◽  
The Impact

Indonesia's economic growth this decade has good development. Not only growing but also more stable than before the reform era which is visible from the persistence of Indonesia at the level of positive growth during the economic crisis of 2008. Growth was good was followed by a change in the proportion of manufacturing industry in Indonesia which, if seen followed by a decrease in the production of some subsector indices industry. Total factor productivity (TFP) is one measure to look at other factors apart from the impact on production inputs such as technical efficiency and technological growth. In this study, in addition to trying to calculate TFP in some manufacturing industries subsector, in this study also wants to see the value of technical efficiency and the growth of the technology is a component of TFP calculations by the method of Stochastic Frontier Analysis (SFA). The results show that there is growing value of technical efficiency in some industries and most industries experienced relatively low growth of the technology. In the era before and after the crisis most of the industry has increased TFP growth but some industry decreased TFP growth. Keywords: SFA, Technical efficiency, Technological growth, TFP

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.

scholarly journals The impact of the subsidies on efficiency of different sized farms. Case study of the Common Agricultural Policy of the European Union

2020 ◽  
Vol 66 (No. 8) ◽  
pp. 373-380
Author(s):  
Jakub Staniszewski ◽  
Michał Borychowski
Keyword(s):  
Agricultural Policy ◽  
Common Agricultural Policy ◽  
Fixed Effects ◽  
Stochastic Frontier Analysis ◽  
Fixed Effects Model ◽  
Current Form ◽  
Frontier Analysis ◽  
On Farm ◽  
The Impact ◽  
Economic Size

The aim of the study is to determine the impact of the EU Common Agricultural Policy (CAP) subsidies on farm efficiency, depending on farm economic size. Although the impact of subsidies on efficiency is already relatively well recognised, earlier studies were focused on identifying this issue rather than explaining the variation in its intensity. Typically, the analysis of variation by type of production and country was conducted with microeconomic data. Our survey is based on data from the Farm Accountancy Data Network (FADN) aggregated at the regional level, for farms representative for particular economic size classes. In the survey, we apply stochastic frontier analysis and "true" fixed-effects model. The results of the research confirm the hypothesis that the impact of subsidies on efficiency depends on the size of farms. Statistically significant, stimulating effect of subsidies was identified only in the group of the largest farms. Such results put into question the effectiveness of the CAP in stimulating the development of the European Model of Agriculture, and at the same time indicate that in its current form, the policy may interfere with market mechanisms and lead to the phenomenon of "rent seeking".

scholarly journals The planned reform of the Common Agricultural Policy with particular reference to the direct support system

2020 ◽  
Vol 66 (No. 8) ◽  
pp. 381-390
Author(s):  
Adrian Sadłowski
Keyword(s):  
Support System ◽  
Agricultural Policy ◽  
Rural Areas ◽  
Common Agricultural Policy ◽  
Legal Framework ◽  
The European Union ◽  
Member States ◽  
Direct Support ◽  
The Common ◽  
The Impact

Having evaluated the situation in agriculture and rural areas, and having assessed the significance of new external and internal conditions, the European Commission has decided to reform the Common Agricultural Policy of the European Union. This article presents the essence of the part of the reform plan which affects the direct support system. The author of the article also examines the impact of the reform on the system’s capacity to achieve the set goals, and on its efficiency. The research showed that the new legal framework proposed by the Commission would not directly improve the efficiency of the system, but the increased decision-making authority it grants to Member States provides an opportunity to reduce administrative outlays on the functioning of the scheme. Likewise, the effectiveness of a reformed direct support system in achieving the set goals will largely depend on decisions made by Member States, i.e. on the appropriate choice of instruments, and the accuracy of their form, as well as the equitable distribution of the available funds.

scholarly journals The Effect of Employing Temporary Workers on Efficiency: Evidence From a Meta-Frontier Analysis

SAGE Open ◽  
2021 ◽  
Vol 11 (4) ◽  
pp. 215824402110581
Author(s):  
Koangsung Choi ◽  
Chung Choe ◽  
Daeho Lee
Keyword(s):  
Technical Efficiency ◽  
Statistical Methods ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Efficiency Analysis ◽  
Temporary Workers ◽  
Frontier Analysis ◽  
Heterogeneous Technologies ◽  
The Impact

This study examines the impact of employing temporary workers on technical efficiency (TE) by employing stochastic frontier analysis (SFA) and meta-frontier analysis (MFA). These two statistical methods yield slightly different, yet empirically meaningful, results. SFA—the more conventional methodology for conducting efficiency analysis—confirms that firms with temporary workers show a somewhat lower level of TE; while MFA, which allows a comparison of TE across groups with heterogeneous technologies, reveals that firms hiring temporary workers are technologically less efficient and have a more pronounced relative gap in efficiency. With the application of MFA, it was observed that firms hiring only temporary workers come farther to the meta-frontier than their counterparts.

scholarly journals The role of small farms for sustainable rural development

2021 ◽  
Vol LXII (2) ◽  
pp. 32-45
Author(s):  
Bojura Fidanska ◽  
◽  
Nina Koteva ◽  
Keyword(s):  
Sustainable Development ◽  
Family Business ◽  
Agricultural Policy ◽  
Rural Areas ◽  
Common Agricultural Policy ◽  
Small Farms ◽  
The Sustainable Development ◽  
The Common ◽  
The Impact

The study examines the role of small farms in the development of entrepreneurship and family business, which contribute to the sustainable development of rural areas in Bulgaria. The aim of the article is to outline the socio-economic importance of small farms on the sustainable development of rural areas, to reveal structural changes and to assess the impact of the implementation of the Common Agricultural Policy. The strengths of small farms for rural development and their needs are highlighted. The difficulties faced by producers in starting a family business are outlined. The results of the study clearly show that small farms are of great social, economic and environmental importance for rural areas. The lack of a definition of “family farm” in the national legislation hinders the process of integration of small farms in economic terms, which in turn affects the sustainability of rural areas. A preliminary assessment of the impact of the implementation of the Common Agricultural Policy on small farms has been made.

Ownership structure and bank performance in EU-15 countries

2018 ◽  
Vol 18 (3) ◽  
pp. 509-530 ◽  
Author(s):  
Carlo Migliardo ◽  
Antonio Fabio Forgione
Keyword(s):  
Technical Efficiency ◽  
Ownership Structure ◽  
Stochastic Frontier Analysis ◽  
Random Effect ◽  
Stochastic Frontier ◽  
Bank Performance ◽  
Continuous Variables ◽  
Content Type ◽  
Frontier Analysis ◽  
The Impact

PurposeThe purpose of this paper is to investigate the impact of ownership structure on bank performance in EU-15 countries. Specifically, it examines to what extent shareholder type and the degree of shareholder concentration affect the banks’ profitability, risk and technical efficiency.Design/methodology/approachThis study uses a sample of 1,459 banks operating in EU-15 countries from 2011 to 2015. It constructs a set of continuous variables capturing the ownership nature, the concentration and their interactions, and estimates an instrumental variable random effect (IV-RE) model. In addition, a panel data stochastic frontier analysis is conducted to estimate the time-varying technical efficiency for profitability and costs.FindingsThe empirical analysis shows that bank performance is affected by shareholder type. When regressed against the entrenchment behavior of the controlling owner hypothesis, banks with large-block shareholders are more profitable, less risky and more profit efficient. Further, ownership concentration reverts the negative effect related to the institutional, bank and industry ownership.Research limitations/implicationsThe results support the hypothesis that concentrated ownership helps to overcome agency problems. They also confirm that managerial involvement in banks’ capital enhances a bank’s profit and its volatility.Originality/valueTo the best of the authors’ knowledge, this is the first study to consider the ownership nature, the concentration and their interaction using continuous variables, which allows for more precise inferences. The results provide new evidence that bank profitability, cost efficiency and risk are affected by the type of direct shareholders.

scholarly journals Dampak Program Sekolah Lapang Pengelolaan Tanaman Terpadu terhadap Efisiensi Teknis Usahatani Kedelai di Kabupaten Jember

2017 ◽  
Vol 2 (2) ◽  
pp. 141
Author(s):  
Indah Ibanah ◽  
Andriyono Kilat Adhi ◽  
Dwi Rachmina
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Government Programs ◽  
Frontier Analysis ◽  
Soybean Production ◽  
Average Value ◽  
Production Factors ◽  
The Government ◽  
The Impact

<p>This study aimed to analyze the impact of Sekolah Lapang Pengelolaan Tanaman Terpadu (SLPTT) on technical efficiency soybean participants and non-participants farmers. SLPTT is one of the government programs in an effort to enhancement production and productivity of soybean through the process of learning the application of technology to the management of the use of farm inputs and integrated climate. The method used was the Stochastic Frontier Analysis (SFA) with a model of the Cobb-Douglas production function. Location research in Jember Regency, East Java.</p>The results show the factors that influence significantly to the enhancement in soybean production among others, land, seeds, chemical fertilizers, and pesticides liquid. Production factors most responsive to the enhancement in soybean production is the amount of seed used. The average level of technical efficiency of soybean farming both farmers SLPTT or non SLPTT in Jember Regency have technically efficient. However, farmers SLPTT has an average value of technical efficiency is higher than their non SLPTT, respectively worth 0.83 and 0.75. The sources that affect farmers' socio-economic enhancement of technical efficiency of soybean farming significantly among others, age, planting techniques, the use of VUB, mechanical control, and the number of counseling or SLPTT 2013.

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