Determinants Of Technical Efficiency Research Articles

Determinants of Technical Efficiency of Sugarcane Production among Small Holder Farmers in Lao PDR

This study was to examine technical efficiency in sugarcane production in Savannakhet, Lao PDR. A stochastic frontier production function was applied with the data collected from 110 sample farmers in 2012. The results reveal that cultivated area (p

Comparison of Technology and Technical Efficiency in Cereal Production among EU Countries

The paper presents the analysis of cereal production in the EU. The analysis provides the comparison of production technologies and technical efficiency among EU countries using the country specific multiple output distance function models in the first step and metafrontier approach in the second step to determine the level and development of technical efficiency. The results show the high technical efficiency of cereal producers in the analyzed countries. On average, the differences in technical efficiency among the analyzed countries are not pronounced; however, the technologies used as well as the determinants of technical efficiency differ significantly.

Comparison of Technology and Technical Efficiency in Cereal Production among EU Countries

The paper presents the analysis of cereal production in the EU. The analysis provides the comparison of production technologies and technical efficiency among EU countries using the country specific multiple output distance function models in the first step and metafrontier approach in the second step to determine the level and development of technical efficiency. The results show the high technical efficiency of cereal producers in the analyzed countries. On average, the differences in technical efficiency among the analyzed countries are not pronounced; however, the technologies used as well as the determinants of technical efficiency differ significantly.

Determinants of Technical Efficiency in Chinese Banking: A Double Bootstrap Data Envelopment Analysis Approach

The main objective of this study is to measure the technical efficiency level of the Chinese banking industry. It uses a double bootstrap data envelopment analysis approach to compute bias-corrected efficiency scores and investigate the determinants of bank efficiency in China between 2003 and 2010. We observe that Chinese commercial banks regardless of ownership have shown improved efficiency from 2003 to 2010. Our results show a significant difference in the performance between state-owned banks and joint-stock banks over the period analyzed. Moreover, the equity-to-asset ratio also significantly explains variations in inefficiency across Chinese commercial banks. Initial public offering is considered one of the effective ways to improve bank efficiency in China. Overall, the present study provides valuable empirical information that can be used to help guide deliberations regarding future reform policies.

Technical efficiency and its determinants in China's hog production

China's hog production is undergoing a great transformation due to the soaring demand and changing raising system. Regarding the essential role of pork in Chinese diet, a systematic analysis on the productivity and efficiency of hog production can provide significant implications for policy makers. This paper investigates the productivity and efficiency of hog production and the determinants of technical efficiency in China using a household level panel data (2004–2010). A stochastic frontier translog production function with scaling property in inefficiency term is adopted for hog production analysis, and the determinants of technical efficiency are incorporated in a one-step estimation using maximum likelihood estimation. Our results show that the average technical efficiency of hog production in China is 0.5914. More importantly, we find that specialized farmers have higher technical efficiency than others, and technical efficiency in the eastern region is higher than that in Central and West China.

English

Increased soybean productivity has great potential for alleviating the perpetual problems of food and nutrition insecurity, poverty and unemployment among the rural households in Kenya. This study analyses the determinants of technical efficiency in smallholder soybean production in a rural farm setting in Bomet District, Kenya. Technical efficiency in this case is the ability of the smallholder farmer to maximize soybean output from a given level of inputs including seed, fertilizer, crop protection chemicals and labour. The primary data used was collected from a field survey using a multistage random sampling design, with the sampling being done at division, location, sub-location and household levels. A structured questionnaire administered in a face to face interview on a proportionate sample of hundred soybean farmers was used. Stochastic Cobb- Douglas frontier model was used to estimate technical efficiency levels while an inefficiency model was used to examine inefficiency variables. Education level, occupation, age and gender affected technical inefficiency. Education level and occupation had negative effects while age and gender had positive effects on inefficiency. Hence, policies targeting promotion of farmer education and farming professionalism would lead to significant increase in the level of technical efficiency in smallholder soybean production.   Key words: Determinants, Stochastic Cobb-Douglas frontier model, technical efficiency, small-holder, soybean, Kenya.

TECHNICAL EFFICIENCY AND ITS DETERMINANTS IN THE SPANISH CONSTRUCTION SECTOR PRE- AND POST-FINANCIAL CRISIS

This paper estimates technical efficiency in the Spanish construction sector before and after the start of the current financial crisis, and examines the impact of socio-economic factors on technical efficiency. Bias-corrected efficiency measures are obtained using Data Envelopment Analysis with bootstrap for a sample of medium-sized and large construction firms over the period 2000–2010. Next, bias-corrected efficiency scores are regressed on the variables explaining efficiency using bootstrap truncated regression. The results show that technical efficiency is very low and is significantly lower after the beginning of the financial crisis than before. Firms with the highest technical efficiency scores have the lowest input-ratio for material and employee costs to output and the highest for fixed assets. The examination of the determinants of technical efficiency indicates that efficiency is higher for firms that export, are highly leveraged, are integrated in the form of joint stock company, and are located in Spanish regions with higher GDP per capita, while firms with high stock relatively to turnover have lower technical efficiency. Technical efficiency increases with size for relatively small sized construction firms, but decreases beyond a critical firm size, while technical efficiency decreases with age for young firms, but eventually increases for older firms.

The determinants of technical efficiency of a large scale HIV prevention project: application of the DEA double bootstrap using panel data from the Indian Avahan.

BackgroundIn 2004, the largest HIV prevention project (Avahan) conducted globally was implemented in India. Avahan was implemented by NGOs supported by state lead partners in order to provide HIV prevention services to high-risk population groups. In 2007, most of the NGOs reached full coverage.MethodsUsing a panel data set of the NGOs that implemented Avahan, we investigate the level of technical efficiency as well as the drivers of technical inefficiency by using the double bootstrap procedure developed by Simar & Wilson (2007). Unlike the two-stage traditional method, this method allows valid inference in the presence of measurement error and serial correlation.ResultsWe find that over the 4 years, Avahan NGOs could have reduced the level of inputs by 43% given the level of outputs reached. We find that efficiency of the project has increased over time. Results indicate that main drivers of inefficiency come from the characteristics of the state lead partner, the NGOs and the catchment area.ConclusionThese organisational factors are important to explicitly consider and assess when designing and implementing HIV prevention programmes and in setting benchmarks in order to optimise the use and allocation of resources.JEL classificationsC14, I1Electronic supplementary materialThe online version of this article (doi:10.1186/s12962-015-0031-2) contains supplementary material, which is available to authorized users.

ANÁLISE DA EFICIÊNCIA TÉCNICA DE PROPRIEDADES CITRÍCOLAS DO ESTADO DE SÃO PAULO

This study aimed at analyzing the technical efficiency of citrus farms in the State of Sao Paulo.For that, data envelopment analysis was applied (DEA) to calculate the levels of technical efficiency, and an econometric approach was used to know the determinants of technical efficiency. The results showed that the majority of citrus properties of Sao Paulo operate inefficiently and the variables that contribute most to increasing efficiency are schooling and time as farmers. The average production and frontier functions were different regarding the magnitude of its parameters, indicating that the instrumental analysis is very important and its correct estimation and interpretation, can facilitate decision making and significantly improve the allocation of resources.

Efficiency and productivity: an empirical analysis of public sector buses in India

This paper examines the technical efficiency and productivity of 31 Indian public sector units, which own buses and provide passenger road transport services. Using Malmquist Productivity Index, the study finds that during the period 2006-2007 to 2012-2013, productivity of these units enhanced due to technological augmentation and improvement in technical efficiency. The study adds to the limited literature by analysing the determinants of technical efficiency of these units, using both two-stage and three-stage data envelopment analyses. The analysis identifies age of the buses, their vehicle productivity and their fuel efficiency as important determinants of technical efficiency. These findings are important for these units for formulating appropriate action plans to efficiently employ their resources.

Technical Efficiency of Milk Producers in Cattle Corridor of Uganda: Kiboga District Case

Overall objective of the study was to analyze technical efficiency and its determinants among milk producers in cattle corridor parts of Kiboga district. Stochastic frontier approach was employed to analyze technical efficiency and Tobit model regression to establish determinants of technical efficiency. The study used cross sectional edited data of 190 randomly sampled respondents from the three sub counties of Dwaniro, Kapeke and Lwamata. Milk producers achieved average technical efficiency level of 68%. Average technical efficiency indicated that milk producers were operating below the production frontier and were not technically efficient but had potential to improve. Determinants of technical efficiency were herd size, improved cows, hired labour, land ownership, water source and extension services. Policies that will lead to increased investment in valley tanks, increased investment in cross/exotic cows and increased investment in provision of extension are recommended by the study.

Estimation of Productivity and Efficiency of Cotton Farmers: A Case Study of District Dera Ghazi Khan

This study estimates total technical (TEcrs), pure technical (TEvrs), allocative (AE), and economic (EE) efficiencies of cotton growers in the district Dera Gazi Khan using data envelopment analysis (DEA) technique. The study finds 0.67, 0.94, 0.57, 0.54 and 0.71 average values of the total technical, pure technical, allocative, economic, and scale efficiencies, respectively. The study also tries to investigate the determinants of technical inefficiency of cotton growers and the slacks of inputs. The results indicate that human capital, research and development, and easy access to markets are major determinants of technical efficiency. The output orientation analysis shows that production of cotton can be increased by 6 maunds (240kgs) per acre under present availability of resources. The slack estimates show that 43 percent cost of inputs is used extra and on average Rs.11, 833 per acre can be saved in this account without loss of output. This study suggests that government should make a strategy to improve irrigation system and provide trainings for optimal utilization of inputs, and ban agro-shops that do not have licenses

Determination of technical efficiency in black pepper growing farms in Dindigul district, Tamil Nadu: A non-parametric approach

Determination of technical efficiency in black pepper growing farms in Dindigul district, Tamil Nadu: A non-parametric approach

Technical efficiency differentials in oil palm processing technologies in Cross River State, Nigeria

This research analyzed technical efficiency differentials between traditional and improved oil palm processing technologies in Cross River State, Nigeria. A multistage sampling technique was used to select 164 processors. Data were collected through questionnaire and analysed using stochastic frontier. Results revealed mean efficiency of 62% for traditional and 81% for improved technologies. Implying that, no need for the development of a new technology; however, production can be improved using current available technologies. Labour, fresh fruit, depreciation cost and other variables costs were found to affect technical efficiency of traditional processors positively while labour, fresh fruit and other variables costs positively affect improved technologies users’ technical efficiency. Determinants of technical efficiency for both groups of processors were processing experience, educational level and access to extension contact. It was recommended that adoption of improved technologies for processing oil palm should be encouraged by government through extension service and credit facilities. DOI: http://dx.doi.org/10.4038/jas.v9i3.7424The Journal of Agricultural Sciences, 2014, vol.9, no3: p.109-117

English

The stochastic metafrontier method is applied to estimate technical efficiency levels in beef cattle production in Kenya. Subsequently, a Tobit model is used to assess factors that might influence efficiency. Results show that the average efficiency level is 0.69, suggesting that there is considerable scope to improve beef production in Kenya. Considering the importance of the livestock enterprise to rural livelihoods and its potential role in poverty reduction, there is need for appropriate development strategies for enhanced efficiency. In particular, livestock development policies should focus on provision of technology-related services. For instance, promoting use of controlled cattle crossbreeding methods would enhance productivity gains. Effective institutional support is also necessary in order to improve efficiency, including improved access to market contracts, better farm management skills and off-farm income opportunities. Key words: Beef production, technical efficiency determinants, metafrontier, Kenya.

Determinants of technical efficiency in agriculture in new EU member states from Central and Eastern Europe

Technical efficiency in agriculture of 10 new EU member states is analysed by Data Envelopment Analysis and econometric panel data analysis. Technical efficiency in agriculture is significantly positively associated with agricultural factor endowments, average farm size, farm specialisation, small-scale farms, and technological change. Foreign direct investments have an ambiguous effect. Reform and institutional developments, large-scale privatisation and price liberalisation, and urban- rural income gap are associated with technical efficiency in agriculture positively. An increase in technical efficiency in agriculture and the development of the rural economy are seen as a strategy to boost the level of living standards in agriculture and in rural areas.

English

This paper examines the level and determinants of technical efficiency of smallholder fish production in seven of the ten regions of Ghana. We employ the single-stage stochastic frontier approach in this study. Regional location, feed, fingerlings and labour are found to influence technical efficiency positively and significantly. However, formal education, marital status, membership in fish farmer groups and contact with extension services negatively influence inefficiency. Finally, estimates from the study indicate that the average smallholder fish producer in Ghana is 73.88% technically efficient. We recommend a bottom-up participatory approach to policy formulation which involves grassroots participation as well as the inclusion of aquaculture management in the curriculum of schools. Key words: Smallholder fish production, technical efficiency, stochastic frontier.

Analysis of Technical Efficiency among Swamp Rice Farmers in Niger State, Nigeria

This study was conducted to evaluate the Technical efficiency among swamp rice farmers in Niger State, Nigeria. A multi-stage sampling technique was used to select 159 swamp rice farmers. The data collected were analysed using descriptive statistics, and the stochastic frontier production function. The results showed that less than 30% of farmers belong to cooperative societies. Majority (74%) were found to be within active age group of 31-50 years. The result of Cobb-Douglass stochastic frontier production function showed that the individual technical efficiency ranges between 34-98 percent with mean technical efficiency of 86%. The result revealed that there is high coefficient of variation (CV) of socio-economic factors, implying high variation in socio-economic factors. This could induce high variation in output among sampled farmers and could affect the efficiency of production. Analysis of inefficiency model showed that age, family size, extension contact and membership of cooperatives were the significant determinants of technical efficiency among the swamp rice farmers in the study area. The study therefore recommends that Swamp rice farmers in the study area should be enlightened by the extension agents on the use of recommended practices so as to improve farmers’ technical efficiency.Keywords: Coefficient of variation, Technical Efficiency, Swamp rice

Trends in and determinants of technical efficiency of software companies in India

This paper attempts to discuss the trends in and determinants of technical efficiency of software companies in India during 1999–2008 by applying input-oriented DEA model. Based upon the PROWESS Database of CMIE, the efficiencies were estimated for the old and new companies and also for Indian, multinational and group companies. The estimations were made for a sample of 72 software companies, under VRS assumption, as dataset manifested large magnitude of differences owing to the presence of big and small companies in the sample. The sales revenue is taken as output variable, and employment, expenditure on computers and electronics equipments, operating expenditure, power, fuel, and water charges as the input variables. The results and analyses demonstrate that the mean overall technical efficiency of the software industry in India during 1999–2008 was low suggesting that software firms, on an average, were wasting 35% of their inputs. It was found that the number of companies operating on most productive scale size has declined during the period under reference. The results also suggest that Indian-owned companies were more efficient than the foreign-owned and group-owned companies. Contrary to the expectations, exports were not found to have exercised significant impact on the efficiency of Indian software industry.

Academic performance and burnout: an efficient frontier analysis of resource use efficiency among employed university students

We examine the impact of university student burnout on academic achievement. With a longitudinal sample of working undergraduate university business and economics students, we use a two-step analytical process to estimate the efficient frontiers of student productivity given inputs of labour and capital and then analyse the potential determinants of technical efficiency. Employing a data envelopment analysis (DEA), we find that student efficiency varies by type of course, with quantitative courses such as economics, having the highest level of dispersion. The longitudinal analysis indicates that both university-related exhaustion and work-related exhaustion are negatively related to student productivity.