Abstract
The research aims to measure the economic efficiency and technological change and the total productivity of resources using the parameter and non-parameter methods, for agricultural companies registered in the Iraqi stock exchange, the number of 6 companies for the period from 2005 to 2017 based on the hypothesis that the agricultural companies do not achieve economic efficiency and does not control the management of its operations, and It may be technically efficient but the size of its operations is not optimal. From non-parametric methods, the data envelope analysis method was used. Using the DEAP program, the Middle East Company achieved the highest average technical and cost efficiency of 0.62 and 0.58, respectively. The Iraqi seed production company achieved the highest average efficiency of 0.66. Using Al- Malmquist Index, the National Company for Agricultural Production achieved the highest rate of change in the total productivity of resources and the highest change in the technical efficiency respectively 1.97 and 2.28, while the Modern company for agricultural production obtained the highest technological change averaging 1.14. A stochastic frontier analysis (SFA) technique was used; logarithmic TL function was estimated using FRONT software. The maximum likelihood method (ML) shows that the capital was increased by 1%, the value of production of companies will increase by 0.22% because it helps to take advantage of the advanced technology that these companies are supposed to work to localize and support the agricultural sector. The cross-elasticity between labor and capital was 0.67 which indicates the nature of the substitution relationship between the two items, because using the technology reduces the workers. The value of sigma-squared was 0.21.
Highlights
The maximum likelihood method (ML) shows that the capital was increased by 1%, the value of production of companies will increase by 0.22% because it helps to take advantage of the advanced technology that these companies are supposed to work to localize and support the agricultural sector
Effective companies can maintain their existence in the market in the long term if they have a degree of efficiency, and efficiency is an inherent characteristic of how the company uses its inputs compared to its outputs, meaning there should be a rational exploitation of mixing inputs at the lowest cost, and if we talk about competitiveness, even the profitable companies at the local level are considered to be inefficient at the global level, so the goal of these companies should be to manage resources in the right way and time that helps create economic value, to cover costs but to provide an appropriate return and at the same time not to exceed the risk limit (13)
Agricultural companies received the attention of researchers at the local and international level, including Britton in 1976(16), who pointed out the extent to which the profits of the agricultural companies in the United States, as well as Doye 2010 who valued the performance of agricultural companies in America, explaining the difficulty of comparison of the absolute levels of measurement of agricultural companies differently and the size of companies Capital requirements and cash flows from operations are the reason for this difference
Summary
Literature indicates that the most relevant word in the minds of people in management more than others is efficiency, as the concept occupies some of the thinking and management practices, so the main concern of management is to achieve efficiency which is measured by scientific methods are the most important determinants of food production in the agricultural sector and in agricultural companies in particular because the company may have good financial inputs and advanced technology, but it cannot be used in accordance with its objectives unless managed efficiently, and efficiency helps a lot in diagnosing production problems, and provides solutions in accordance with the theoretical and economic experimental practices , a lot of decision-makers care about the results of these practices, as they will help determine the general interventions to improve efficiency and productivity (2). Given the decline in agricultural production, poor efficiency and marketing under the current market economy, and the urgent need to improve productivity and transfer of technologies, and to improve the industrial structure, the relationship between inputs and outputs needs to be changed, so that agricultural companies can play this role (20). The research problem lies in the decrease in the number of agricultural companies with the unwillingness to enter new companies for agricultural production indicating there are problems and challenges facing these companies, including the lack of economic efficiency and the lack of rewarding returns, which shows that they have not been put on the right track, despite the passage of more than two decades since the establishment of the latest one, there is uncertainty about the role that these companies can play in the development of the agricultural sector. Based on the hypothesis that agricultural companies do not achieve economic efficiency and don't control the management of their operations and may be technically efficient, but the size of operations is not on the optimal level and that volumetric efficiency is the largest source of technical efficiency growth
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