scholarly journals A stochastic frontier and corrected Ordinary Least Square models of determining technical efficiency of canal irrigated paddy farms in Tamil Nadu

2017 ◽  
Vol 9 (2) ◽  
pp. 658-662
Author(s):  
R. Vasanthi ◽  
B. Sivasankari ◽  
J. Gitanjali
Keyword(s):  
Comparative Study ◽  
Technical Efficiency ◽  
Production Function ◽  
Tamil Nadu ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Least Square ◽  
Qualitative Variable ◽  
Frontier Analysis ◽  
Ordinary Least Square

A comparative study between Stochastic frontier production function and corrected Ordinary Least Square (OLS) were estimated to determine technical efficiency in paddy production. Further, the study has assessed the effect of farm specific socio economic factors affecting the technical efficiency. This study was conducted in Cauvery delta zone of seven taluks about canal irrigation. The number of farmers in canal irrigated region about 109 from seven taluks is considered. The data were obtained from the cost of cultivation scheme of Tamil Nadu centre. The results of Cobb Douglas stochastic production function indicated that fertilizer, seed, pesticide and machine hours significantly influenced yield of paddy. The results also indicated that it will be highly profitable to increase the use of seed, and need to rationalize the labour use and pesticide usage. The effect of qualitative variable namely age and education of the farmer would indicate that the older farmers technical efficiency become less compared to the younger farmer, and also implying that investments on human capital take away their participation from agriculture. As a comparative study in general, COLS produced the lowest mean technical efficiency with 85 percent while the Stochastic frontier analysis produced the highest mean technical efficiency with 90 per cent.

scholarly journals TECHNICAL EFFICIENCY ANALYSIS IN INDONESIAN FISHERY PROCESSING INDUSTRY: A CASE OF FISHERY CANNED PRODUCT FIRMS

2019 ◽  
Vol 9 (1) ◽  
pp. 53
Author(s):  
Munawar Asikin ◽  
Arief Daryanto ◽  
Machfud . ◽  
Subagio Dwijosumono
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Efficiency Analysis ◽  
Least Square ◽  
Time Varying ◽  
Efficient Manner ◽  
Processing Industry ◽  
Frontier Analysis ◽  
Ordinary Least Square

This study aims to analyze technical efficiency and evaluate the effect of some sources of inefficiency in the Indonesian fishery canned firms during the period of 1990-2015. We calculate technical efficiency using the Stochastic Frontier Analysis (SFA) method with Time Varying Decay. The average of technical efficiency in this industry during the period of 1990-2015 was only 57%. It indicates that firms in this industry still encounter a problem in allocating the resources in efficient manner.  However, during the period of 1994-2015, the efficiency in the Indonesian fishery canned industry has declined. We also employed the Ordinary Least Square (OLS) method to evaluate the sources of inefficiency. The results showed that eight variables affected to the efficiency in this industry, thereby it will reduce fishery product competitiveness in the future

scholarly journals DETERMINAN EFISIENSI NELAYAN DI INDONESIA: SEBUAH ANALISIS STOCHASTIC FRONTIER

2019 ◽  
Vol 14 (1) ◽  
pp. 115
Author(s):  
Eko Wicaksono ◽  
Yuventus Effendi
Keyword(s):  
Technical Efficiency ◽  
Production Function ◽  
Cell Phone ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Fishing Gear ◽  
Fish Production ◽  
Significant Determinant ◽  
Frontier Analysis ◽  
Illegal Fishing

Pemerintah Indonesia saat ini sangat serius memberantas penangkapan ikan ilegal di wilayahnya. Pengurangan penangkapan ikan secara ilegal oleh kapal asing di Indonesia berarti pengurangan persaingan yang signifikan antara nelayan asing dan domestik. Studi ini berpendapat bahwa, dengan menurunnya kompetisi dengan nelayan asing, nelayan domestik harus mampu meningkatkan jumlah tangkapan. Penelitian ini bertujuan untuk mengetahui tingkat efisiensi teknis dan juga faktor penentu inefisiensi nelayan di Indonesia. Penelitian ini menggunakan fungsi produksi yang meliputi usaha nelayan dan capital sebagai input. Analisis stochastic frontier digunakan untuk menguji faktor penentu inefisiensi pada produksi ikan di antara 156 nelayan di seluruh Indonesia. Hasil penelitian menunjukkan bahwa produksi ikan sangat bergantung pada jumlah awak dan jenis kapal sesuai yang diharapkan. Dalam hal inefisiensi, penelitian ini mengklaim bahwa kepemilikan telepon seluler merupakan penentu signifikan untuk mengurangi inefisiensi, diikuti oleh kepemilikan kapal dan nilai alat tangkap. Temuan tersebut menyiratkan bahwa koordinasi antara nelayan, kepemilikan kapal dan alat penangkap ikan penting untuk efisiensi nelayan. Determinants of Fisher’s Efficiency in Indonesia: A Stochastic Frontier AnalysisIndonesian government has been recently fought against illegal fishing in the territory. Reduction in illegal fishing means a significant reduction in competition among foreign and domestic fishers. This study suggests that domestic fishers must be able to increase their fish capture as the competition with foreign fishers decreased. This study aims to identify technical efficiency level as well as to identify the determinants of inefficiency among fishers across Indonesia. This study utilizes a production function including fishers’ efforts and capital as input. A stochastic frontier analysis is used to examine the inefficiency determinants on fish production among one hundred and fifty six fishers across Indonesia. The result indicated that fish production depended significantly on the number of crew and expected type of boat. This study claims that cell phone is a significant determinant to reduce inefficiency, ship ownership and the value of fishing gear respectively. These finding implies that coordination among fishers, boat ownership and fishing gear are necessary for the fishers’ efficiency. 

scholarly journals Technical Efficiency of Smallholder Tomato Production in Semi-Urban Farms in Cameroon: A Stochastic Frontier Production Approach

2017 ◽  
Vol 7 (4) ◽  
pp. 27 ◽  
Author(s):  
Martin Paul Jr. Tabe-Ojong ◽  
Ernest L. Molua
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Smallholder Farmers ◽  
Research Question ◽  
Stochastic Frontier ◽  
Negative Influence ◽  
Farm Size ◽  
Primary Data ◽  
Tomato Production ◽  
Frontier Analysis

Agriculture is the mainstay of Cameroon’s economy as it serves the purposes of food, livelihood and employment. Nevertheless, the country’s agriculture is plagued by low productivity and inefficiency in production. One of the main reasons for low productivity is the inability of farmers to fully exploit available technologies and production techniques. An important research question that comes to mind is, what are the major factors that hinder the technical efficiency of smallholder farmers? This study thus aimed to determine the level of technical efficiency in the production of tomato in smallholder farms, relying on primary data collected using a structured survey instrument administered to 80 tomato farmers in the Buea municipality of Cameroon. Data was analyzed using descriptive statistics and a stochastic frontier analysis method in the Cobb-Douglas production function. The STATA.14 software was used to obtain both stochastic frontier estimates and the determinants of technical efficiency. The results indicate that farmers are not fully technically efficient with a mean technical efficiency score of 0.68 with one farmer operating on the frontier. The study also revealed that most of the farmers irrespective of the size of the holdings have shown technical inefficiency problems. The older farmers were observed with the best measures of technical efficiency. Education, age and the adoption and practice of agronomic techniques had a positive and significant influence on technical efficiency while the nearest distance to the extension agent had a rather negative influence on technical efficiency. The input-output relationship showed that the area of tomato cultivation and the quantity of improved seed used were positive and significantly related to output at the 5% level of probability. As a result, it is recommended that farmers should increase their farm size, use of improved seeds and the adoption and practice of novel techniques in production. More emphasis should be placed on extension agents as they have a significant role to play in terms of improving and augmenting farmers’ education and information base through on farm demonstrations and result oriented workshops as all this will ensure increased production and productivity thereby increasing technical efficiency and achieving food self-sufficiency.

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 Technical Efficiency among Pepper Farmers in Sarawak, Malaysia: A Stochastic Frontier Analysis

2020 ◽  
Vol 10 (3) ◽  
pp. 729-739
Author(s):  
Anita Rosli ◽  
Alias Radam ◽  
Khalid Abdul Rahim ◽  
Amin Mahir Abdullah
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Agricultural Practices ◽  
Piper Nigrum ◽  
Maximum Output ◽  
Full Time ◽  
Frontier Analysis ◽  
One Step ◽  
The Mean

This study aimed to estimate the technical efficiency among pepper (Piper nigrum. L) farmers in Sarawak, Malaysia, using Stochastic Frontier Analysis (SFA). SFA involves a one-step process that can estimate technical inefficacy factors simultaneously with the production frontier. 678 pepper farmers were involved in this study, and the data were collected from 2012 to 2013. The mean score for technical efficiency was 0.518, indicating that pepper farmers were not efficient. However, the inefficiency model showed that education level, membership in farmers’ association, full-time as a pepper farmer, attending courses and visiting sample farms were factors that significantly improved inefficiency. The major problem of pepper farming in Sarawak is poor agricultural practices where farmers do not fully utilize the available agricultural inputs to produce maximum output. Based on the findings, farmers must improve their knowledge and skills in pepper farming through agronomic education.

scholarly journals The trends in efficiency of Lithuanian dairy farms: a semiparametric approach

2015 ◽  
Vol 37 (2) ◽  
pp. 167-178 ◽  
Author(s):  
Tomas Baležentis ◽  
Tianxiang Li ◽  
Alvydas Baležentis
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Dairy Farms ◽  
Random Coefficients ◽  
Family Farms ◽  
Frontier Analysis ◽  
Semiparametric Approach ◽  
Farm Accountancy Data Network ◽  
Development Paths

This study aims at analysing the trends in efficiency of Lithuanian dairy farms and thus identifying the prospective development paths. The semiparametric approach based on nonparametric regression and Stochastic Frontier Analysis is applied for the analysis. The research relies on Farm Accountancy Data Network and covers family farms. The period of 2004–2011 is considered. In order to identify the underlying trends in dairy farming, we focus on such features as technical efficiency, partial elasticities, and elasticity of scale. The semiparametric approach yielded rather high efficiencies. Specifically, the average technical efficiency of 89% was observed. A decline in technical efficiency during 2004–2011 is present for both point estimates and associated bounds of the confidence interval. Analysis of the elasticity of scale implies that most of the farms could still increase their scale of operation. The obtained results were confirmed by a parametric random coefficients model.

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.

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