Analysis of Technical Efficiency of Pear Farms - Focusing on Homogeneity Classification -

Abstract

This study measured technical efficiency of Korean pear farms by cultivation type and certification type to make clear the difference of technical efficiency according to the homogeneity classification. From the analysis we tried to show the importance of homogeneity of sample farms in decision making unit. For the study, surveyed income data of pear farms in 2018 were obtained from Rural Development Administration, where cultivation type included intensive culture, semi-intensive culture and crude culture, and certification type included GAP (Good Agricultural Practices) and non-GAP. Data Envelopment Analysis was used to measure technical efficiency for input oriented CCR model, where farms selected inputs instead of outputs as decision making variables. Results showed that farms under intensive culture and crude culture had higher technical efficiency than semi-intensive culture, which was affected by small sample size of those cultures. Farms under certification types showed higher technical efficiency than overall farms, which implied the importance of homogeneity of sample farms in DEA analysis. In addition, technical efficiencies of GAP type and non-GAP type showed higher values in pairwise comparison with the technical efficiencies as a member of overall farms. This resulted in different benchmarking information and resource reallocation, implying the importance of homogeneity classification.