Abstract

The purpose of this study is to investigate the production efficiencies of the Korean aquaculture fishery with respect to species and methods using a Data Envelopment Analysis. The study extracted the 8 fishes in each of the sea cage culture, aquarium basin, and enclosed aquaculture for the analytical purposes. First, the study estimated the technical, pure technical, and scale efficiencies of the total of 24 aquaculture fishes based on the traditional DEA under the assumptions of both CRS and VRS. 2 fishes were identified as the efficient DMUs under the CCR-model, and 6 fishes under the BCC-model. Second, we tested to see if there was any difference in production efficiencies regarding those three different methods of aquaculture. we could not find any evidence of the differences in efficiency using a rank sum test based on the traditional DEA. However, we could do find that the pure technical efficiency in the sea cage culture was lower than others at 1% level of significance and the pure technical efficiency in enclosed aquaculture was also lower than others at 5% level of significance using Bilateral-DEA, which could explicitly consider the heterogeneity in the 3 production methods of aquaculture. Finally, the study obtained the 95% confidence intervals of the efficiency scores for the 24 fishes under our study using the smoothed bootstraping method in the process of the re-sampling in cooperation with both a kernel density estimation and a reflection method. At the same time, we could estimate the bias-corrected efficiency scores while the traditionally estimated efficiency scores suffered from the biases in the process of solving a linear programming with the deterministic nature of a production frontier. And hence, we could distinguish the differences in production efficiencies of the 8 fishes with respect to those 3 methods of aquaculture.

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