Effects of partial quantity rationing of credit on technical efficiency of Boro rice growers in Bangladesh: Application of the stochastic frontier model

2021 ◽  
pp. 501
Author(s):  
Md Ghulam Rabbany ◽  
Yasir Mehmood ◽  
Fazlul Hoque ◽  
Tanwne Sarker ◽  
Arshad Ahmad Khan ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Seed Quality ◽  
Stochastic Frontier ◽  
Farm Labor ◽  
Negative Effects ◽  
Frontier Analysis ◽  
Credit Data ◽  
Two Stages ◽  
Boro Rice

In this study, we analyzed the effects of the partial quantity rationing of credit on the technical efficiency of Boro rice growers in the Pabna district of Bangladesh. Before conducting the field survey, we designed a theoretical framework and identified farm households affected by the partial quantity rationing of credit. Data were collected from 174 Boro rice growers and analyzed in two stages, where the technical efficiency of Boro rice growers was assessed using stochastic frontier analysis, and the inefficiency effects model was then applied to evaluate determinants of the technical efficiency. The mean technical efficiency of Boro rice growers was 78%, which indicates that their technical efficiency was 22% beyond the production frontier curve. The variables comprising the household head’s age, education level, seed quality, formal training, access to the market, farm labor, tillage cost, fertilizer cost, irrigation cost, and price of seedlings significantly affected the technical efficiency of rice growers. The variables of interest comprising the rate and partial quantity rationing of credit had significant negative effects on the technical efficiency of rice growers. The findings obtained in this study will help to enhance the actual production level using the available resources and improve the food security situation in Bangladesh.

scholarly journals Profitability Comparison Between Boro Rice and Maize Production in Dinajpur District

2021 ◽  
Vol 8 (1) ◽  
pp. 51-56
Author(s):  
Rozina Yeasmin ◽  
Mohammad Saidur Rahman ◽  
Mohammad Ismail Hossain
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Cost Ratio ◽  
Maize Production ◽  
Frontier Analysis ◽  
Benefit Cost Ratio ◽  
Rice Farmers ◽  
Benefit Cost ◽  
Boro Rice

The study focuses on comparing technical efficiency and profitability between Boro rice farmers and maize farmers in Dinajpur district consisting of 150 randomly collected samples which are analyzed with statistical software STATA 12.0 version. Stochastic Frontier Analysis (SFA) is used to accomplish the first objective where it is found that the maize farmers are efficient compared to boro-rice farmers. The deviation of the mean technical efficiency is estimated at 0.09. In addition maize farmers are also more profitable than boro-rice farmers estimated with a benefit Cost Ratio (BCR) of1.08 is for boro-rice and 1.26 is for maize production. The net profit for boro-rice is estimated as 10,527.60 Tk./ha whereas 28,966.40 Tk./ha for maize producers. However mean technical efficiency of boro-rice (0.44) and maize (0.53) cultivation clearly indicates that better utilization of resources will raise the efficiency and profitability for both crops production. Res. Agric., Livest. Fish.8(1): 51-56, April 2021

scholarly journals Analisis Technical Efficiency Bank Umum Syariah Dengan Metode Stochastic Frontier Analysis

2018 ◽  
Vol 1 (2) ◽  
pp. 367-376
Author(s):  
Muhammad Haikal Kautsar ◽  
Isfenti Sadalia
Keyword(s):  
Technical Efficiency ◽  
Commercial Bank ◽  
Stochastic Frontier Analysis ◽  
Operating Cost ◽  
Stochastic Frontier ◽  
The Other ◽  
Operating Costs ◽  
Negative Effects ◽  
Frontier Analysis ◽  
Observation Period

Pertumbuhan yang pesat dari industri perbankan syariah mendorong adanya peningkatan kualitas seiring bertambahnya kuantitas bank syariah di Indonesia. Penjagaan kualitas penting bagi bank syariah karena bergerak atas landasan kepercayaan. Efisiensi merupakan salah satu parameter untuk mengukur kinerja bank syariah. Penelitian ini mengukur tingkat Technical Efficiency Bank Umum Syariah dengan metode Stochastic Frontier Analysis selama periode 2010-2015. Dengan menggunakan 11 sampel Bank Umum Syariah dan Variabel Input Total Simpanan, Biaya Operasional, Biaya Operasional Lainnya. Variabel Output yaitu Total Pembiayaan. Hasil penelitian ini menunjukan Bahwa Total Simpanan dan Biaya Operasional berpengaruh positif dan signifikan terhadap Total Pembiayaan. Sementara, Biaya Operasional Lainnya berpengaruh negatif terhadap Total Pembiayaaan. Secara rerata skor Technical Efficiency Bank Umum Syariah selama periode observasi sebesar 0,743. The rapid growth of sharia banking industry boosts the quality improvement as the increase of sharia banking quantity in Indonesia. The quality control is important for sharia banks since they move based on society trust. Efficiency is one of the parameters to measure sharia banking performance. This research measured the technical efficiency level of Sharia Commercial Bank (Bank UmumSyariah) using Stochastic Frontier Analysis method for 2010-2015 periods. By using 11 Sharia Commercial Bank samples and total deposits input variable, operating cost, and other operating costs. The output variable was total financing. The result of this research showed that the total deposits and operating cost had positive and significant effects on total financing. On the other hand, the other operating costs had negative effects on total financing. In average, the technical efficiency of Sharia Commercial Bank during the observation period was 0.743  

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.

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