Comparative Analysis Of Technical Efficiency Research Articles

Data envelopment analysis to investigate the Italian legal system and its reform

This work investigates the Italian judicial system and discusses the designing of a policy reform to boost the efficiency of courts, considering the human resources available as well as the expenditure generated by the process to deliver justice. The authors present the benchmarks and shed light on how policy makers embarking on such a process of reform may be misled by inappropriate model definition. In detail, the authors propose a comparative analysis of technical efficiency (TE) scores computed using data envelopment analysis, adopting the same output (number of settled cases) and two alternative sets of inputs (judicial expenditure and human resources). According to the results, without considering the information extracted from the two complementary benchmark analyses, policy makers might be misled in the reform process. Regarding the elements that affect the performance of courts, it may be possible to improve the efficiency of judicial districts by working on judicial procedures. Hence, these are the domains where interventions by policy makers may prove successful. As for policy implications, the models and benchmarks presented here could be used to devise a reform of the judicial system aimed at enhancing its TE, while also keeping public expenditure under control.

DO CLUSTER FARMING PRACTICES IMPROVE PROFITABILITY AND PRODUCTIVITY INDICES OF SMALLHOLDER RICE FARMERS? EVIDENCE FROM BORNO STATE, NIGERIA

The study examined the comparative analysis of technical efficiency of cluster and non-cluster rice farming in Borno state, Nigeria. Primary data were collected through structured questionnaire administered to 232 farmers comprising of 93 clustering and 139 non-clustering rice farmers in Borno State, Nigeria. Data were subjected to analytical techniques that included descriptive statistics, gross margin, t-test and stochastic frontier production function (SFPF). Cluster rice farming enterprise per hectare was more profitable by producing a gross margin (GM) of 196,020.62/ha thus returning N1.72 on every N1.00 invested as compared to non-cluster farming which produced a GM of 99,619.32/ha and thus had a return of N0.96 on every N1.00 invested. The SFPF revealed an average technical efficiency (TE) of 0.76 for cluster farming was higher than 0.58 for non-cluster farmers. Hence, cluster rice farming was more technically efficient compared to non-cluster rice farming. The determining factors of TE in cluster farming include seed (-0.49), fertilizer (0.242), agro-chemicals (0.341) and labour (0.747) compared to non-cluster which included fertilizer (0.207), agro-chemicals (-0.291) and labour (0.668). Inefficiency variables were insignificant in cluster farming while household members active in farming (0.811), years of farming experience (-0.226), and amount of credit utilized (0.5e-4) were statistically significant in non-cluster farming. Insecurity, pest infestation and shortage of water were critical production constraints faced by cluster farmers compared to non-cluster farmers faced with constraints such as shortage of water, insecurity and flooding. Non-clustering farmers should adopt production cluster farming to boost their profit, increase their efficiency and take advantage of the enormous services attributed to working in groups.

Comparative Analysis of Technical Efficiency of Rice Farmers under Public and Private Land Administration in Dadinkowa Irrigation Scheme Area of Gombe and Borno States, Nigeria

This study analyzed the technical efficiency of rice farmers in Dadinkowa Irrigation Scheme (DKIS) area of Gombe and Borno States, Nigeria. Multi-stage sampling technique was used to select 400 rice farmers under irrigation farming, who provided data by means of structured interview. Descriptive and inferential statistics were used to analyze data. Specifically, descriptive statistics was used to describe socio-economic characteristics of respondents, Stochastic frontier model was used to estimate the technical efficiency of rice farmers. The stochastic production function showed that the determinants of rice irrigation farming in the study area were: farm size (0.25), labor (0.36), education (-0.49), transportation (0.0011) and rental cost (0.0095) were significant at 5, 1, 10, 1 and 5% level of probability respectively for farmers in DKIS. In Integrated Savanna Vegetables and Fruits Canning Factory (VEGFRU), farm size (0.45) and transportation cost (0.003) were found to be significant at 1 and 10% level of probability respectively. In National Institute of Horticultural Research and Training (NIHORT) and College of Horticulture (NIHORT and CoH), household size (-0.025) and non-farm income (3.3) were both significant at 5% level of probability. Lastly, quantity of seed (0.16), quantity of fertilizer (0.38), education (-0.04), household size (-0.014) and transportation cost (0.0001), were found to be significant at 5, 1, 10, 5 and 1 % level of probability respectively in local land authority. The study also revealed that the mean technical efficiencies were 0.88, 0.94, 0.86 and 0.65 for DKIS, VEGFRU, NIHORT/CoH and local authority respectively. This means that farmers were technically efficient given the current level of technology. From the result, farmers under the land administration authorities of VEGFRU are more technically efficient than DKIS, followed by NIHORT /CoH), and lastly local authority. This may be explained by the important role played by DKIS office in terms of proximity and supports to rice farmers. The returns to scale were respectively 0.708, 0.421, 0.52 and 0.566 for DKIS, VEGFRU, NIHORT/CoH and Local authority. This showed that rice farmers operated at the rational stage of production (diminishing return). This implies that the technical efficiency of rice farmers under irrigation farming in the study area could be increased by 0.12, 0.6, 0.14 and 0.35 respectively through the use of available resources given the current level of technology and better extension services. And rice farmers can expand their production through additional use of inputs It was recommended that Government should accelerate the implementation of land consolidation in order to reduce the effect of land fragmentation and to improve the efficiency of rice farmers under irrigation farming, especially in DKIS and VEGFRU, whereby the farm size has significant effect on technical efficiency. In DKIS and Local authority, Government should strengthen formal education among the rice farmers, and facilitate the transportation system for moving farm output from farm to market at affordable cost in the study area.

A Comparative Analysis of Technical Efficiency, Technological Change and Total Factor Productivity in Selected ASEAN+3 Countries

A Comparative Analysis of Technical Efficiency, Technological Change and Total Factor Productivity in Selected ASEAN+3 Countries

A comparative analysis of technical efficiency, technological change and total factor productivity in selected ASEAN+3 countries

A comparative analysis of technical efficiency, technological change and total factor productivity in selected ASEAN+3 countries

Comparative analysis of technical efficiency of piglet farming in three production center provinces in Indonesia

Pork production occupies the third position in Indonesia, after chicken and beef. Even pigs occupy the top rank in contributing to Indonesia's live animal exports. The purpose of this study was to com-pare the level of technical efficiency of smallholder piglet production farming in three centers of pig production areas, namely North Sumatra, Bali, and East Nusa Tenggara (NTT). The research data was sourced from secondary data at the farm level, collected by the Central Statistics Agency of Indonesia, through the Livestock Business Household Survey. This research utilized the stochastic production frontier model to assess the production efficiency and the one-step maximum likelihood estimation (MLE) method to measure the level of technical efficiency and the significance of the factors. The re-sults show that the average level of technical efficiency of piglet production farms in Indonesia is rela-tively low. Piglet production farms in Bali have the highest efficiency level and NTT is the lowest of the three provinces being compared. The number of pigs, feed expenditure, capital, and vaccinations are important factors in influencing production and the level of technical efficiency. Public policies that can increase farmers' access to production factors and better pig farm vaccine management become a necessity.

A Comparative Analysis of Technical Efficiency and Profitability of Agribusiness and Non-Agribusiness Enterprises in Eastern DRC

The purpose of this study was to determine whether agribusiness could be competitive compared to non-agribusiness employment opportunities in terms of technical efficiency and profitability. We used data collected on all seven operating cassava community processing centers (CCPCs) and 150 comparable non-agribusiness enterprises in South Kivu province. A Data Envelopment Analysis (DEA), as well as cost–benefit ratios and net monthly revenue, were used to examine technical efficiency and profitability. Our results showed that agribusiness was more competitive than non-agribusiness in terms of technical efficiency and profitability. The cost–benefit ratio shows that every dollar invested in agribusiness earns investors US $2.8, while it earns investors in non-agribusiness US $2.1. Moreover, technical efficiency increases significantly with agribusiness. These results show that agribusiness can compete with other non-agribusiness activities, and it remains a solution to youth unemployment in the region.

Comparative Analysis of technical efficiency of wheat production in row planting and broadcasting methods: Empirical evidence from southern Ethiopia

A Cobb–Douglas stochastic production frontier was used to analyze the technical efficiency of wheat producers under row planting and broadcasting methods in Hadiya zone, southern Ethiopia. The estimated results of the Cobb–Douglas frontier model show that the mean technical efficiency was 83.4% and 57.8% under row planting and broadcasting, respectively. Approximately 646.882 kg/ha under row planting and 1393.038 kg/ha under broadcasting of wheat output were lost due to inefficiency. This reveals that under the existing practices there is a room to increase wheat yield more under broadcasting (42.2%) than row planting (16.6%) following the best-practice farms in the study area. The SPF model indicates that NPS, urea, labour and seed are significant determinants of wheat production level in both methods. The estimated SPF model together with the inefficiency parameters show that education, age, fertility status of the plot, family size, land fragmentation and extension contact were the main factors that had a significant influence on technical inefficiency of wheat farmers. Hence, emphasis should be given to improving the efficiency level of those less efficient farmers by adopting the practices of relatively efficient farmers in the area.

Public and Private Management of Sub-Saharan African Railways Companies: A Comparative Analysis of Technical Efficiency

Public and Private Management of Sub-Saharan African Railways Companies: A Comparative Analysis of Technical Efficiency

Comparative analysis of technical efficiency between organic and non-organic rice farming in North Sumatera Indonesia

Non-organic farming will deteriorate the land and decrease the total factor productivity, which may result to higher production cost and low crop yield in the long run. However, Indonesian government initiative to become less dependent on non-organic rice farming by encouraging farmer to plant organic rice seems unsuccessful. Nevertheless, the most rice consumed in Indonesia is from non-organic farming. This study uses data envelopment analysis (DEA) based on non-parametric approach to measure technical, allocative and economic efficiency. This study found that pesticide and irrigation is underutilized, but fertilizer and labor are being overutilized. Even though most farmer are technically efficient, better efficient input allocation can improve the efficiency. Organic rice farming is less efficient than non-organic farming due to its low crop yield. Farmer with longer education background tend to be less efficient and more inclination toward planting organic rice.

Comparative analysis of technical efficiency of catfish farms using different technologies in Lagos State, Nigeria: a Data Envelopment Analysis (DEA) approach

BackgroundThere is no gainsaying the fact that demand for proteins has continuously outweighed supply in Nigeria. This is largely due to the rising population on one part and the low level of technology to cope with changing production practices specifically in the fishery sub-sector and agricultural production in general on the other part. The resultant effect of this is the widening demand and supply gap which often culminate in farmers devising different technologies or approaches to mediate the shortfall. This study therefore examined comparative analysis of technical efficiency among catfish producers using different construction designs in Lagos State, Nigeria. A sample consisting of 43 earthen catfish producers, 33 cage culture and 37 plastics tank was selected from three agricultural zones in the state. Data collected were analysed using descriptive statistics, budgetary and profitability analysis, regression analysis and Data Envelopment Analysis approach.Results and main findingsOverall average technical efficiency estimates obtained under the Variable Returns to Scale (VRS) and Constant Returns to Scale (CRS) specification for earthen catfish producers were 0.92 and 0.73, respectively. The overall average technical efficiency estimates for VRS and CRS specification under cage culture catfish producers were 0.92 and 0.79, respectively, and overall mean estimates obtained for VRS and CRS specification under plastic tank catfish producers were 0.95 and 0.69, respectively. However, for CRS under earthen pond, two variables, sex and age of farmer with t values of − 2.10 and 1.82, were equally significant. Again, for CRS under cage culture, two variables were significant, and these were years of formal education and primary occupation with t values of − 2.09 and 2.16. Under CRS for plastic tank, two variables—age and religion with t values of 2.04 and 1.99—were significant at 5 and 10%, respectively.ConclusionsThe study concludes that the most efficient and profitable construction designs among earthen, cage culture and plastic tank are the earthen pond. This is because of its cost-effectiveness in terms of design and management as well as the limited impact on the environment. As indicated, years of formal education were significant in all the designs revealing that education plays a pivotal role in efficiency. The implication of the findings is that famers should be better educated on the dangers inherent in polluting water bodies to avoid contamination (since the earthen pond is the most efficient) to enhance catfish production if the much desired production increase is to be sustained.

Comparative Analysis of Technical Efficiency for Islamic versus Conventional Banks and Its Determinants in Pakistan

The purpose of this study is to analyze the Technical Efficiency (TE) of Islamic banks and conventional banks in Pakistan by using Data Envelopment Test (DEA). We also used TOBIT analysis to identify the determinants of efficiency in the banking industry. Twenty banks have been selected from the banking industry, from which ten banks are Islamic banks or banks which have Islamic branches, and ten banks are conventional banks. Panel data are used for the period 2007-2015. Overall, it is concluded that conventional banks are technically more efficient than Islamic banks. Accordingly, the censored TOBIT regression indicates that the ownership, liquidity, bank size, and capital adequacy ratios are the main determinants of overall TE for the banks.

The “effect procargo” on technical and scale efficiency at airports: The case of Spanish airports (2009–2011)

This paper studies the “effect procargo” (or effect of the proportion of cargo traffic relative to total traffic) on technical and scale efficiency at airports. To this end, using Data Envelopment Analysis (DEA) methodology, a comparative technical efficiency analysis is developed for 35 Spanish airports over the 2009 to 2011 period. In a second stage, using Tobit regression, we analysed the effects of airport size, low-cost carrier (LCC) presence, and cargo traffic on efficiency. The results suggest that cargo traffic has a positive impact on the technical and scale efficiency of Spanish airport operations. Airports with a higher share of cargo traffic are expected to have higher overall technical efficiency, pure technical efficiency, and scale efficiency, in comparison to airports with a lower share.

Comparative analysis of technical efficiency for different production culture systems and species of freshwater aquaculture in Peninsular Malaysia

This study estimated the bias-corrected technical efficiency (BCTE) of different culture systems and species of freshwater aquaculture in Malaysia using bootstrapping data envelopment analysis (DEA). Data were collected from 307 respondents from three states in Peninsular Malaysia using a well-structured questionnaire as well as oral interviews. The findings indicate that all technical efficiency scores for all culture systems and species are below the optimal level (i.e. one). In addition, the results show that farmers’ experience, contact with extension workers and household size have a positive and statistically significant impact on technical efficiency. This implies that farmers who have long tenure in fish farming and also the opportunity to meet with extension workers are operating close to the production frontier (technically efficient). On the other hand, the age of the farmers has a negative and statistically significant impact on technical efficiency. Although educational level and farm status have a positive impact on technical efficiency, they are statistically insignificant. Furthermore, all the inputs used in the production process of different culture systems and species contained slacks and need to be reduced accordingly. Feed, the major input in fish production and constituting over half of the production costs, is equally over-utilized. Thus, the government, in collaboration with research institutes and universities, should design a feeding formula for fish depending on species, culture systems and stages of growth. This could help to reduce production costs, increasing the farmers' income, as well as providing much needed animal protein to consumers at an affordable rate.

A comparative analysis of technical efficiency of smallholder tobacco and maize farmers in Tabora, Tanzania.

The study presented here considers the relative efficiency of planting tobacco and maize in the tobacco-producing Tabora region of Tanzania. The study used a 2013 survey that was conducted among smallholder farmers in the Tabora region. The aim was to investigate whether farmers are better off planting tobacco or maize. The paper briefly reviews the importance of agriculture in general and tobacco planting in particular on the Tanzanian economy. The paper then reviews the methodology used in the analysis, The Frontier Production Function. The findings show relative inefficiency in both tobacco and maize production. When the two are compared, one finds a statistically significant higher efficiency in the production of maize compared to tobacco. In other words, maize farmers can produce the same output utilizing 76.83% of the current input, while the corresponding value for tobacco is 73.89 percent.  After generating the efficiency index of each farmer and for each crop, a multiple linear regression was estimated to identify significant determinants of efficiency. For the production of maize, five significant explanatory variables were identified (gender, age, education, household size, and farm size). For tobacco production, five explanatory variables including the variable “feeling sick while curing tobacco” were significant. In other words, the efficiency equation for maize has significantly better fit. In general, the efficiency indicators suggest that Tanzanian small scale farmers are more productive planting maize than tobacco.     Key words: Frontier, efficiency, tobacco, maize, Tanzania. &nbsp

Comparative Analysis of Technical Efficiency of Milk Production Systems in Uasin Gishu County of Kenya

In Uasin Gishu County the rapidly declining household land sizes are a pre-requisite to increased intensification in dairy production. Although the three dairy production pathways are used by farmers in the County, it has not been established which one of them would be comparatively competitive to enhance commercialization process and lead to attractive returns to smallholders investing in milk production. The objective of this paper was to determine the economic efficiency of smallholder milk production under different intensification methods. A sample size of 246 smallholder dairy farmers was selected in Uasin Gishu County using stratified random sampling method. Using both primary and secondary data, economic efficiencies were evaluated utilizing Cobb-Douglas stochastic frontier production function. The result of the analysis indicate that presence of technical inefficiencies had effects in milk production as depicted by the significant estimated gamma coefficient of each model, the generalized likelihood ratio test and the predicted economic efficiencies within the dairy farms. Technical efficiency increased with the level of intensification of milk production with open grazing, semi-zero grazing and zero grazing recording a mean score of 0.54, 0.57 and 0.81 respectively. The maximum likelihood estimates for technical efficiency was an increasing function of cost of feeds and equipment in the three production systems with statistical significance of 5%. Market access condition the technical efficiency of milk production especially for this highly perishable product. Educational opportunities for farmers lead to initiative, innovation and improvements. There is need to increase the level of intensification in milk production to enhance technical efficiency.

Small is beautiful? The impact of economic crisis, low cost carriers, and size on efficiency in Spanish airports (2009–2011)

This paper carries out a comparative technical efficiency analysis of 35 Spanish airports using panel data for 2009–2011 with a data envelopment analysis (DEA) methodology. The results suggest that airport size has a positive impact on the technical and scale efficiency and that the presence of low cost carriers has positively affected the scale efficiency of the airports where they operate. The results also show that during the present economic crisis Spanish airports have experienced a dramatic productivity regress which is due to the reduction of their technological change component.

Productivity Benchmarking the Australian Water Utilities

This article presents a productivity benchmarking study of Australian water utilities using stochastic frontier analysis of the input distance function. It identifies total factor productivity (TFP) trends and comparative levels and, through decomposition, explores some of the reasons for productivity change. Productivity is found to have declined between 2006 and 2010 over all regions, with the smallest declines in the four major urban Victorian utilities and the largest declines among the regional Victorian urban water utilities and the major utilities in other states. Comparative technical efficiency analysis finds the major urban Victorian utilities were more efficient than the average water utility, while the regional Victorian urban water utilities and the major utilities in other states were of below-average technical efficiency. The benchmarking method employed in the study may be relevant to economic regulation.

Comparative technical efficiency analysis of regulated and unregulated natural lakes fisheries In Plateau State: stochastic frontier approach

Most natural lakes fisheries in Plateau State are “open access” with their fishing activities unregulated and only Pandam Lake fishing activities are regulated. This paper examines the comparative exploitation levels of regulated and unregulated fisheries through the estimates of technical efficiency of natural lakes artisanal fishers in Plateau state, with a view to examine the level of exploitation of fisheries as renewable resource in the country. Daily fishing observations made during catch assessment survey for 4 weeks and data collected through questionnaire from 20 fishers’ selected each from Polmakat, Shimankar, Deben, Janta and 30 fishers from regulated Pandam Lake. This gives a sample size of 110 respondents. A multi-stage sampling technique was used and the analysis by descriptive statistics and stochastic frontier production function model. The mean technical efficiency of unregulated and regulated fishers was 0.83 and 91.29 respectively. The unregulated analysis indicates that 68% of variation in the fishers output was as a result of the presence of technical inefficiency effect in the fishery. The regulated fishery show decreasing return to scale 0.123 and fishers were operating at stage II. At the unregulated fishery some observable variables relating to socioeconomics characteristics such as extension contact, age and educational status significantly explain technical efficiency. Transformation for effective and sustainable fisheries exploitation will need the involvement of educated fishers, extension education, and redefinition of property rights and constraining of inputs at regulated fishery. Keywords: fisheries, technical, efficiency, inefficiency, frontier, stochastic.

Comparative analysis of technical efficiency between traditional and improved rice variety farmers in Nigeria

This study examined technical efficiency differentials between farmers planning traditional rice varieties and those planning improved varieties in Nigeria. The study employed a multistage random sampling procedure for the selection of 302 respondents across four major rice producing states in the country. The main analytical technique used was estimation of technical efficiency following Maximum Likelihood Estimation (MLE) Procedure available in Frontier 4.1. Results that emanated from these analyses showed that significant increase recorded in output of rice in the country could be traced mainly to area expansion. Other variables that tended to contribute to technical efficiency were; hired labour, herbicides and seeds. The estimated average technical efficiencies for the two groups were correspondingly high (>0.90). Further analysis showed that farmers in both categories were operating at a point of increasing return to scale. The test of hypothesis on the differentials in technical efficiency between the two groups of farmers showed that there was no absolute differential in technical efficiency between them. African Journal of Economic Policy Vol. 11(1) 2004: 91-108