Agricultural Productivity in Indonesian Provinces

Author(s):  
Khee Giap Tan ◽  
Nurina Merdikawati ◽  
Ramkishen S. Rajan

Indonesia has been recognized as a country with significant potential in agriculture, not only to be self-sufficient in terms of food, but also to be the “food basket” for the world. However, given limited and competing use of resources, raising agricultural productivity is of paramount importance. To date, most of the existing work on Indonesia's agricultural sector is at the national level. Considering the extent of Indonesia's regional diversity, a provincial-level analysis of the country's agricultural sector would be more useful from a policy perspective. In this light, this paper examines agricultural productivity growth in Indonesian provinces during 2000-2011 and draws policy implications from such empirical analysis. The paper uses two methodologies, namely growth accounting and Malmquist index data envelopment analysis. Results suggest that technological change has been improving for most provinces, though there is wide variation in technical efficiency change which in turn is driving differences in total factor productivity growth across provinces.

Author(s):  
Khee Giap Tan ◽  
Nurina Merdikawati ◽  
Ramkishen S. Rajan

Indonesia has been recognized as a country with significant potential in agriculture, not only to be self-sufficient in terms of food, but also to be the “food basket” for the world. However, given limited and competing use of resources, raising agricultural productivity is of paramount importance. To date, most of the existing work on Indonesia's agricultural sector is at the national level. Considering the extent of Indonesia's regional diversity, a provincial-level analysis of the country's agricultural sector would be more useful from a policy perspective. In this light, this paper examines agricultural productivity growth in Indonesian provinces during 2000-2011 and draws policy implications from such empirical analysis. The paper uses two methodologies, namely growth accounting and Malmquist index data envelopment analysis. Results suggest that technological change has been improving for most provinces, though there is wide variation in technical efficiency change which in turn is driving differences in total factor productivity growth across provinces.


2007 ◽  
Vol 9 (1) ◽  
pp. 1 ◽  
Author(s):  
Mohd. Azmi Omar ◽  
M. Shabri Abd. Majid ◽  
Ronald Rulindo

This study investigates the efficiency and productivity performance of the national private banks in Indonesia during the period of 2002-2004. The data consist of 21 national private banks including two Islamic banks. Productivity is measured by the Malmquist Index using Data Envelopment Analysis (DEA) technique. Overall, the result shows that the Total Factor Production (TFP) Index of the national private banks has considerably increased for the whole industry, in which technical change is found to be a more important source of productivity growth to the Indonesian Banking Industry compared to efficiency change. Furthermore, the result also shows that the efficiency of two Islamic banks is above the average efficiency of the national private banks.


2015 ◽  
Vol 14 (3) ◽  
pp. 231-248 ◽  
Author(s):  
Khee Giap Tan ◽  
Kartik Rao ◽  
Ramkishen Rajan

Purpose – This paper aims to provide an up-to-date analysis of the productivity in the agricultural sector within the states and union territories of India. Despite agriculture’s diminishing role as a share of overall gross domestic product (GDP) in India, it plays a crucial role by providing a large proportion of jobs to the workforce. Recognising agriculture’s central role in the economy as well as the significant diversity between the states in terms of resources, this paper estimates the total factor productivity (TFP) for Indian crops at the state level from 2000 to 2010 using both the growth accounting and the Malmquist Index Data Envelopment Analysis methodologies. The results highlight the possibility of increasing production with existing technologies by focusing on efficient resource deployment and enhanced management techniques. Design/methodology/approach – The paper utilizes both growth accounting and the Malmquist Index Data Envelopment Analysis methodologies to estimate the growth of TFP at the regional level at the sub-national level (for states and union territories). Findings – The results highlight the wide variations in the performance of states with respect to growth in TFP for the period 2000-2010. At the regional level, the Western region experienced the largest TFP growth, while the Eastern region experienced the lowest. At the state level, Gujarat registered the highest TFP growth, while Bihar emerged as a laggard with the lowest growth in TFP. Practical implications – The results highlight the possibility of increasing production with existing technologies by focusing on efficient resource deployment and enhanced management techniques. Originality/value – Although most of the existing literature focuses on national level analysis for India, this paper provides an up-to-date analysis of the productivity in the agricultural sector within the states and union territories of India. Correspondingly, the results are more applicable for these sub-national economies and offer more relevant policy implications.


2002 ◽  
Vol 22 (2) ◽  
pp. 133-146 ◽  
Author(s):  
Marcelo Farid Pereira ◽  
João Serafim Tusi da Silveira ◽  
Edgar Augusto Lanzer ◽  
Robert Wayne Samohyl

Starting in the 1970's, the Brazilian agricultural sector has experienced an important process of modernization, whose principal effects include advances in technological progress and gains in productivity. The primary objective of this paper is to analyze technological progress and total productivity growth in the Brazilian agricultural sector during the period from 1970 to 1996. The methodology used here is based on the Malmquist productivity index and techniques in mathematical programming called Data Envelopment Analysis. The results show that significant progress was made in this sector of the economy but concentrated in only some regions of the country.


Equilibrium ◽  
2021 ◽  
Vol 16 (3) ◽  
pp. 553-576
Author(s):  
Eva Richterová ◽  
Martin Richter ◽  
Zlata Sojková

Research background: Agriculture plays a vital role in producing food to ensure food security, but it is one of the biggest contributors to environmental pollution. One of the main goals of the new CAP is to set higher ambitions for environmental actions, which brings into the front the concept of agricultural eco-efficiency. The notion of eco-efficiency includes the economic and also ecological dimensions of sustainable agriculture. Purpose of the article: The main goal of this paper is to evaluate the eco-efficiency of agricultural production and its dynamics during the years 2013, 2015, and 2017 of NUTS 2 regions within the Visegrad 4  (V4), i. e. The Czech Republic, Slovakia, Hungary, and Poland. The part of the main goal is to verify the research hypothesis that all the biggest agriculture producers are eco-efficient. Methods: V4 regional eco-efficiency of the agricultural sector is expressed by the Malmquist productivity index and is estimated using the output-oriented Data envelopment analysis (DEA) model, under the assumption of constant return to scale (CRS). The Malmquist index is decomposed to technical eco-efficiency change (EC) and technological change (TC). Based on the eco-efficiency, technological and pure technical eco-efficiency change, V4 regions are classified into three groups: the most progressive regions, the progressive regions, and the regressive regions. Findings & value added: CZ02: Central Bohemia, CZ04: Northwest, HU33: Dél-Alföld, HU31: Észak-Magyarország, HU32: Észak-Alföld, PL21: Malopolskie, PL41: Wielkopolskie, SK01: Bratislava region, and SK02: Western Slovakia have an eco-effective agricultural sector, the remaining V4 regions have eco-ineffective agricultural sector. The research hypothesis that all the biggest agricultural producers are eco-effective is not confirmed. During the analyzed years, 19 V4 regions improve their agricultural eco-efficiency. The main contributor to eco-efficiency improvement is technological progress, which indicates that producers implement innovations that lead to more eco-efficiency agricultural production.


2020 ◽  
Vol 53 (7-8) ◽  
pp. 1278-1285
Author(s):  
Esmaeil Mombini ◽  
Mohsen Rostamy-Malkhalifeh ◽  
Mansor Saraj ◽  
Mohsen Zahraei ◽  
Reza Tayebi Khorami

Data envelopment analysis is a nonparametric method for measuring of the performance of decision-making units—which do not need to have or compute a firm’s production function, which is often difficult to calculate. For any manager, the progress or setback of the thing they manage is important because it makes planning and adoption of future policies for the organization or decision-making unit more rational and scientific. Different methods have been used to calculate the improvements and regressions using Malmquist Index. In this article, we evaluate the units under review in terms of economic efficiency, and the units in terms of spending, production, revenue and profit over several periods, and the rate of improvement or regression of each of these units. Considering the minimal use of resources and consuming less money, generating more revenue, and maximizing profits, the improvement or retreat of the recipient’s decision unit in terms of cost, revenue, and profit was examined by presenting a method based on solving linear programming models using the productivity index is Malmquist and Malmquist Global. Finally, by designing and solving a numerical example, we emphasize and test the applicability of the material presented in this article.


Author(s):  
Emile J. Salame

In the present chapter agricultural productivity in four countries Israel, Jordan, Lebanon and Syria is examined. A thorough look at previous studies that considered those countries is provided. The data used is drawn from the Food and Agriculture Organization of the United Nations and adjusted, covering the period of 1972 through 2006. The study utilizes Data Envelopment Analysis (DEA) to calculate Malmquist productivity indices. The study looks at the tendencies in agricultural productivity for the four countries throughout the 35 years, in which wars and conflicts took place. The estimates of efficiency change, technical change, and total factor productivity change obtained for the four countries are calculated. Moreover, a model for technical inefficiency effects in a stochastic frontier production function is suggested to provide a possible explanation of the sources of inefficiencies and the effect of each inefficiency variable.


Author(s):  
Youssef Er Rays, Et. al.

The Primary Health Care in Morocco plays a very strategic role in the prevention against various diseases, in particular the current pandemic COVID 19. The efficiency of these centers has a direct impact on the reduction of this pandemic. First, this is why will try to research the literature review about the technical efficiency of primary health care. In the second step, the non-parametric: Data Envelopment Analysis method will be used to apply the empiric phase during the period 2012-2015, to estimate the relative technical efficiency, this method will be calculated by using two models: the theory of the return to scale constant with a middle equal to 0.437 and the theory of the variable return to scale with an average of 0.537. It’s necessary to combine the DEA approach with the Malmquist index to evaluate the factors of production. Finally, to compare the results of the proposed method which are generally very poor, and discuss his policy implications for health care.


Author(s):  
Yongyi Cheng ◽  
Liheng Lu ◽  
Tianyuan Shao ◽  
Manhong Shen ◽  
Laiqun Jin

This paper investigated the factors driving the changes in industrial wastewater emission intensity (IWEI) across provinces in China. To do this, we proposed a Super-efficiency Slacks-based Measure-Global Malmquist Index (SSBM-GMI) to decompose the change in IWEI into the effects from efficiency change (ECE), technological change (TCE), capital–wastewater substitution (KWE) and labor–wastewater substitution (LWE). The method was applied to conduct an empirical study using Chinese provincial data from 2003–2015. The main findings include the following: firstly, TCE was the dominant driving force behind the reduction in IWEI with an average annual contribution of −6.4% at the national level, followed by KWE (−5.3%), LWE (−1.8%) and ECE (1.2%). Secondly, significant differences exist in the driving factors behind the reduction in IWEI across regions. The reduction in IWEIs in the Northeast area and the Great Northwest area was mainly driven by productivity growth, while the reduction in IWEIs in the other areas was mainly driven by factor substitution. Thirdly, the shortage of KWE and LWE has impeded IWEI reduction in the Great Northwest area, the Middle Reaches of the Yellow River, the Northeast area and the North area. Finally, some particular policy implications were also recommended for reducing industrial wastewater emission in China.


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