scholarly journals The Effect of Crop Specialization on Farms' Performance: A Bayesian Non-neutral Stochastic Frontier Approach

2021 ◽  
Vol 5 ◽  
Author(s):  
Alphonse G. Singbo ◽  
Grigorios Emvalomatis ◽  
Alfons Oude Lansink
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Distance Functions ◽  
Economies Of Scope ◽  
Vegetable Production ◽  
Production Frontier ◽  
Stochastic Frontier Approach ◽  
Fertility Variable ◽  
Shadow Cost ◽  
Positive Effect

A Bayesian non-neutral stochastic input distance function model is used to examine whether output specialization has an impact on the economic performance of vegetable producers in Benin. Specialization is assumed to have an effect on the production frontier itself, as well as on the distance of each producer's observed data to this frontier (technical efficiency). A derivative-based measure of economies of scope is obtained by exploiting the duality between the shadow cost and the input distance functions. In this study, we also control for spatial heterogeneity of vegetable production by including a soil fertility variable in the production function at the farm level. The technology is found to exhibit no economies of scope, indicating that vegetable producers have no incentive for specialization or diversification. However, the degree of specialization has a positive effect on technical efficiency. From a policy perspective, the findings imply that policies to encourage specialization may lead to higher performance.

scholarly journals STOCHASTIC PRODUCTION FRONTIER: FRAMEWORK AND DEVELOPMENT

2012 ◽  
Vol 5 (2) ◽  
pp. 88
Author(s):  
Suyanto Suyanto
Keyword(s):  
Panel Data ◽  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Theoretical Framework ◽  
Stochastic Production Frontier ◽  
Production Frontier ◽  
Stochastic Frontier Approach ◽  
Two Stage ◽  
Stochastic Production ◽  
The One

This paper explores the framework and development of stochastic frontier Approach (SFA). The original idea of the SFA and its theoretical framework is discussed to provide a basic foundation of the approach. The development of SFA with more flexible distribution assumptions follows the pioneering model. Experts alsodevelop the time-variant technical efficiency models, in order to allow variation between times for a production unit. The most recent development is the panel data SFA, which includes the two-stage and the one-stage procedures.

scholarly journals Agricultural Technical Efficiency of Smallholder Farmers in Ethiopia: A Stochastic Frontier Approach

Land ◽  
2021 ◽  
Vol 10 (3) ◽  
pp. 246
Author(s):  
Markose Chekol Zewdie ◽  
Michele Moretti ◽  
Daregot Berihun Tenessa ◽  
Zemen Ayalew Ayele ◽  
Jan Nyssen ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Crop Production ◽  
Large Scale ◽  
Positive Impact ◽  
Smallholder Farmers ◽  
Stochastic Frontier ◽  
Crop Productivity ◽  
Small Scale ◽  
Stochastic Frontier Approach ◽  
Small Scale Irrigation

In the past decade, to improve crop production and productivity, Ethiopia has embarked on an ambitious irrigation farming expansion program and has introduced new large- and small-scale irrigation initiatives. However, in Ethiopia, poverty remains a challenge, and crop productivity per unit area of land is very low. Literature on the technical efficiency (TE) of large-scale and small-scale irrigation user farmers as compared to the non-user farmers in Ethiopia is also limited. Investigating smallholder farmers’ TE level and its principal determinants is very important to increase crop production and productivity and to improve smallholder farmers’ livelihood and food security. Using 1026 household-level cross-section data, this study adopts a technology flexible stochastic frontier approach to examine agricultural TE of large-scale irrigation users, small-scale irrigation users and non-user farmers in Ethiopia. The results indicate that, due to poor extension services and old-style agronomic practices, the mean TE of farmers is very low (44.33%), implying that there is a wider room for increasing crop production in the study areas through increasing the TE of smallholder farmers without additional investment in novel agricultural technologies. Results also show that large-scale irrigation user farmers (21.05%) are less technically efficient than small-scale irrigation user farmers (60.29%). However, improving irrigation infrastructure shifts the frontier up and has a positive impact on smallholder farmers’ output.

scholarly journals Efficacité Technique des Petits Producteurs du Maïs au Bénin

2018 ◽  
Vol 14 (19) ◽  
pp. 109
Author(s):  
Fawaz A. Adéchinan Aminou
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Farm Households ◽  
Farm Income ◽  
Selling Price ◽  
Stochastic Frontier Approach ◽  
Access To Credit ◽  
Seed Distribution ◽  
Production Area ◽  
Low Efficiency

This study examines how small maize farmers allocate their production inputs and identifies the elements that characterize efficient farms. A Cobb Douglas stochastic frontier approach is used to estimate farm level technical efficiency of maize farmers. Average technical efficiency of sampled farms was estimated to be 65.40% with a minimum of 20.47% and a maximum of 93.46%. The study further showed that the farmers’ sex, the use of improved seeds, the maize selling price, the non-farm income, the contact with an NGO, the access to credit and the production area played a positive and significant role in improving technical efficiency. The results imply that government can save resources used in extension services and focus on its improved seed distribution policy. Also, imperfections in the labor/capital market contribute to the low efficiency of farm households.

Technical efficiency and input-driven growth in Indian engineering goods industry during post-reform period: stochastic frontier approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vasim Akram ◽  
Asheref Illiyan
Keyword(s):  
Technical Efficiency ◽  
High Performance ◽  
Stochastic Frontier ◽  
Capacity Utilization ◽  
Output Growth ◽  
Infrastructure Development ◽  
Efficiency Change ◽  
Stochastic Frontier Approach ◽  
Content Type ◽  
Reform Period

PurposeThe purpose of this study is to examine the performance of Indian engineering goods industry by measuring the technical efficiency and input-driven growth.Design/methodology/approachThe study used the panel data of six firms from the period of 1991–92 to 2014–15 compiled from Annual Survey of Industries (ASI), India and output-oriented econometric techniques such as pooled OLS model, and stochastic frontier approach has been applied to measure the technical efficiency.FindingsThe results suggest that the prime sources of high performance in engineering goods industry, which has recorded 8.8% output growth, are primarily contributed by inputs driven growth (8.2%) during the post-reform period, while the effect of technological change is minimal (0.1%) and technical efficiency change is negative (−0.2%). It was due to sluggishness, outdated technology and underutilization of resources in Indian economy.Research limitations/implicationsThis research paper is limited to engineering goods industry based on concorded macro data. The recommendations are that India should pursue policies and programs which may focus on technology acquisition, skill enhancement of labor, better capacity utilization, R&D and infrastructure development that may augment the technical change and technical efficiency change of the sector.Originality/valueThis research provides robust and significant estimates of technical efficiency and adds valuable insights to the existing literature by identifying the potential areas that improves the performance of Indian engineering goods industry.

scholarly journals Technical and Resource Use Efficiency of Urban Vegetable Farming in the Kumasi Metropolis: A Stochastic Frontier Approach

2018 ◽  
Vol 8 (2) ◽  
pp. 92-103
Author(s):  
Adams Abdulai ◽  
Simon Cudjoe Fialor ◽  
John Eudes Andivi Bakang ◽  
Emmanuel Tetteh Jumpah
Keyword(s):  
Job Search ◽  
Stochastic Frontier ◽  
Allocative Efficiency ◽  
Productive Efficiency ◽  
Extension Agents ◽  
Vegetable Production ◽  
Stochastic Frontier Approach ◽  
Cross Sectional ◽  
Vegetable Farmers ◽  
The Government

The changing food demands by the teeming urban population, job search, and sector profitability have made vegetable production indispensable as it contributes to increased incomes and livelihoods of urban dwellers.This study investigated the current level of productive efficiency (technical and allocative) of vegetable farmers in the Kumasi Metropolis using cross-sectional data obtained from 135 sampled farmers using a semi-structured questionnaire. Data analysis was conducted using the stochastic frontier approach to estimate firm-specific technical efficiencies and the factors that influence efficiency levels. The results show that inefficiency exists among the sampled vegetable farmers as they currently achieve an average technical efficiency score of 66.7%. Allocative efficiency estimates for land and labour revealed that both factors of production are over utilised by farmers. The age of the farmer is the main socio-economic determinant of technical efficiency.The study recommends that farmers be educated on the correct use of inputs by extension agents. The government policy of recruiting community extension agents under the ‘planting for food and jobs’ programme is in line with addressing inefficiency in the production sector and should be promoted.

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