scholarly journals Effects of Agricultural Cooperative Society on Farmers’ Technical Efficiency: Evidence from Stochastic Frontier Analysis

2020 ◽  
Vol 12 (19) ◽  
pp. 8194
Author(s):  
Ruopin Qu ◽  
Yongchang Wu ◽  
Jing Chen ◽  
Glyn D. Jones ◽  
Wenjing Li ◽  
...  

The impact of agricultural cooperatives on apple farmers’ technical efficiency (TE) in China was examined. The cooperatives were divided into two groups: a collective marketing group for farmers and an equivalent non-marketing group that did not provide a marketing service, although other functions remained the same. Using the propensity score matching (PSM) procedure and stochastic production frontier (SPF) modelling, cooperatives’ key functions that potentially increase farmers’ TE can be identified. The results indicate that membership of either group is positively related to yield. However, cooperatives that were not engaged in marketing achieved higher TE than non-members. This suggests that policy makers should encourage cooperatives to focus on activities that do not include direct marketing to increase TE in apple production in China.

2019 ◽  
Vol 65 (No. 10) ◽  
pp. 445-453
Author(s):  
Tamara Rudinskaya ◽  
Tomas Hlavsa ◽  
Martin Hruska

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.


2018 ◽  
Vol 6 (1) ◽  
pp. 1-20
Author(s):  
Muhammad Fazri ◽  
Hermanto Siregar ◽  
Nunung Nuryartono

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


Author(s):  
Syafrial ◽  
Hery Toiba ◽  
Moh Shadiqur Rahman ◽  
Dwi Retnoningsih

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.


SAGE Open ◽  
2021 ◽  
Vol 11 (4) ◽  
pp. 215824402110581
Author(s):  
Koangsung Choi ◽  
Chung Choe ◽  
Daeho Lee

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.


2018 ◽  
Vol 18 (3) ◽  
pp. 509-530 ◽  
Author(s):  
Carlo Migliardo ◽  
Antonio Fabio Forgione

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.


2017 ◽  
Vol 2 (2) ◽  
pp. 141
Author(s):  
Indah Ibanah ◽  
Andriyono Kilat Adhi ◽  
Dwi Rachmina

<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.


2018 ◽  
Vol 6 (1) ◽  
pp. 1-20
Author(s):  
Muhammad Fazri ◽  
Hermanto Siregar ◽  
Nunung Nuryartono

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


Media Trend ◽  
2021 ◽  
Vol 16 (2) ◽  
pp. 189-202
Author(s):  
Widita Pambudi Wijaya ◽  
Dyah Wulan Sari ◽  
Wenny Restikasari

This study aims to investigate the effect of market concentration on industrial efficiency. Large and medium processing industry data in East Java and the Stochastic Frontier Analysis (SFA) approach were used to investigate the impact of market concentration on the efficiency of the industry. The results of the study indicate that market concentration in the processing industry in East Java leads to oligopoly. The variable of firm size (FSize) and the level of market concentration (CR4) have a negative effect on the level of technical efficiency of large and medium industries in East Java.


PLoS ONE ◽  
2021 ◽  
Vol 16 (1) ◽  
pp. e0245426
Author(s):  
Kehinde Oluseyi Olagunju ◽  
Adebayo Isaiah Ogunniyi ◽  
Zainab Oyetunde-Usman ◽  
Abiodun Olusola Omotayo ◽  
Bola Amoke Awotide

The formation of agricultural cooperatives has been widely promoted as an agricultural development policy initiative to help smallholder farmers cope with multiple production and marketing challenges. Using a nationally representative survey dataset of smallholder maize producers from rural Nigeria, this study assesses the impact of agricultural cooperative membership on technical efficiency (TE). We based our estimation approach on the combination of a newly developed sample selection stochastic production frontier model with propensity score matching to control for possible selectivity biases from both observables and unobservables. We estimate stochastic meta-frontiers to examine TE differences between cooperative members and non-members. Our results reveal that TE levels of members are consistently higher than that of non-members. This calls for continued policy incentives targeted at encouraging farmers to form as well as participate in agricultural cooperatives.


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