Differences In Technical Efficiency Research Articles

RICE PROCESSING TECHNIQUES AND EFFICIENCY DIFFERENTIALS IN NIGERIA

The techniques of rice processing determine output optimization and level of efficiency of processors. This study was carried out to augment the dearth of knowledge of efficiency differentials of rice processing techniques in Nigeria. Analytical approaches include descriptive statistics and Data Envelopment Analysis-(DEA) which were used in analysing information from 410 rice processors in Nigeria. Index of processing techniques was traditional-techniques-(trad=<0.2-0.39); traditional and modern-Techniques-(trad-modern=0.40-0.79) and Purely Modern-Techniques-(purely-modern=>0.79). The results showed overall, 20.4%, 65.7% and 13.9% used Trad, Trad-modern and Purely-modern techniques of processing, respectively. Technical Efficiency (TE) was 0.4±0.3, 0.5±0.6 and 0.8±0.9 for trad, trad-modern and purely-modern techniques, respectively. Allocative Efficiency (AE) was 0.4, 0.6 and 0.9; while Economic Efficiency (EE) was 0.8, 0.3, 0.2. The TE differentials for trad-techniques relative to purely-modern and trad-modern techniques were 0.45 and 0.11, respectively. The AE differentials for trad-techniques relative to purely-modern techniques and trad-modern techniques was 0.01, while EE differentials for trad-techniques relative to the other two techniques was 0.6. The study shows rice processing in Nigeria exhibits a range of outcomes based on techniques used. While traditional methods persist due to their low cost, larger processors are increasingly adopting trad-modern and purely-modern techniques to improve efficiency and product quality. Addressing the efficiency differentials in rice processing requires a comprehensive approach, including investments in technology, infrastructure, and skill development to foster food security in Nigeria. These findings therefore challenge the notion that traditional-modern and purely modern techniques are less technically efficient than traditional techniques in rice processing.

Are Organic Farms Less Efficient? The Case of Estonian Dairy Farms

The paper investigates the technical efficiency of conventional and organic dairy farms in Estonia in the period 2006‒2015 using Farm Accountancy Data Network. We analyse self-selection into organic farming using the propensity-score-matching approach and explicitly test the hypothesis that organic and conventional farms apply homogeneous technology. We find that organic farms are less efficient. However, the difference in technical efficiency between organic and conventional farms decreases substantially when the technical efficiency assessment incorporates the use of the appropriate technology. The lack of growth of technical efficiency over time indicates that there might be a lack of knowledge in organic milk production that hinders its development. Since technical efficiency increases with farm size, it is important that organic dairy farms increase their scale.

Technical and allocative efficiency of crop production using different storage and water‐lifting technologies in Central Rift Valley, Ethiopia

AbstractAssessing the efficiency gains, in terms of crop production and productivity, of using agricultural water management is critical to understanding the comparative advantage of using different storage and water‐lifting technologies in irrigation development. This study aims to compare the efficiency differences among irrigation farmers using various water‐lifting technologies and among users of various technology suites in the Central Rift Valley, Ethiopia. Cross‐sectional data collected from 320 randomly selected smallholder farmers, considering the 2019/2020 production season, were used to analyse a one‐step Cobb–Douglas stochastic frontier function. The results of the study revealed the existence of technical and allocative efficiency differences between gravity and fuel pump users. Factors that positively determine the level of technical efficiency scores are gender, age, education status, technology type and extension contact. Irrigation experience, access to credit, training and technology type positively affected allocative efficiency, while the distance to the irrigation water source had a negative effect. The findings have important implications for agricultural policy and practice as improving efficiency through the adoption of fuel‐powered water‐lifting technology could further improve overall agricultural productivity. Designing small‐scale friendly business models and promoting irrigation extension services, among others, is critical for scaling successful water management technologies.

AN ANALYSIS OF CROP COSTS IN ITALIAN NITRATE VULNERABLE AREAS AND AGRI-ENVIRONMENTAL SUBSIDIES

In several Italian regions there are severe limitations and constraints in the use of chemical inputs in farms in order to protect the environment, as a consequence of the introduction of the UE Nitrates Directive in 1991. The purpose of this paper was to assess how chemical inputs impacted on the technical efficiency in farms in function of their location in vulnerable nitrate areas and also in function of their productive specialization over three seven-year periods of Common Agricultural Policy enforcement. The Italian FADN dataset from 2004 to 2020 was used for the purpose of this research. Significant differences were estimated in all investigated types of farming, even though there was no change in technical efficiency over the different periods of CAP enforcement. A difference in technology can partially explain the differences in technical efficiency and in the excess of inputs on investigated Italian farms.

Differences in Technical and Tactical Efficiency between Winning and Defeated Water Polo Teams: A Comparative Analysis

Notation analysis is basically the gathering and analyzing of information that has been gained from observing performance in a competitive situation. The aim of this paper was to determine and explain the results and differences in technical and tactical efficiency in men’s water polo between winning and defeated teams. The sample of the entities included 31 matches from the men’s tournament held at the Olympic Games in Tokyo 2021. The sample of variables covered 18 defense and attack parameters of efficiency. Using a t-test for independent samples led to a result that the winning and losing teams differed significantly in four variables. Significant differences of winning teams in the realization with an equal number of players was probably stemmed from having better skills in achieving optimal conditions in preparation and performance. The reasons for the superiority of the winning teams in the part of defensive actions can probably be found in better and more coordinated actions of all defensive players in exclusions, blocking the ball and goalkeeper shot saves. These findings encourage coaches to improve players’ skills by providing optimal conditions for the part of the technical-tactical solutions in defense and attack.

Do female labor‐migrated households have lower productivity? Empirical evidence from rural rice farms in Bangladesh

AbstractThe labor movement from rural areas and the remittance flow from migrants is a common household livelihood strategy in rural Bangladesh. While migration can offer economic benefits through remittances, it can be a source of hardship for migrants and their families due to societal culture. This study examines the differences in farm productivity and technical efficiency between female and male labor migrants by focusing on female and male laborers who have lived away from their homes for 6 months or more within the country and its reflection on farm production. Using data on 2271 rice plots from Bangladesh Integrated Households Survey in 2018, we estimate plot‐level stochastic meta‐frontier approach for households with female‐labor migrants and male‐labor migrants separately emphasizing technological difference and heteroskedastic technical efficiency. The empirical result shows that the female‐labor migrants' farms have 10.3% lower production frontier (maximum frontier yield) and 6.1% higher technical efficiency than male migrants' farms, indicating that they have 4.2% lower productivity. Lower production frontier reflects lower management ability and less attention to farm practice. Moreover, the study reveals that female‐labor migrants' farms are closer to the meta‐frontier, suggesting smaller technology gaps. However, some farmers failed to achieve the highest possible output in relation to the meta‐frontier, indicating that farmers can boost their production by adopting and disseminating new rice production technology.

Safety enhancement of improved hydrodissection for microwave ablation in secondary hyperparathyroidism

Objective To study the safety of improved hydrodissection based on the periparathyroidal fascial space during microwave ablation (MWA) for secondary hyperparathyroidism (SHPT). Materials and Methods Data from 337 patients (162 males and 175 females; mean age, 50.8 ± 12.8 [range, 16-84] years) who underwent MWA for SHPT were retrospectively reviewed. Among them, 177 patients underwent traditional hydrodissection (traditional group) and 160 patients underwent improved hydrodissection based on periparathyroidal fascial spaces (improved group). Safety enhancement was analyzed by comparing the complications between the two groups. The characteristics of the hydrodissected fascial spaces, complications, and the follow-up results were recorded. The baseline data, clinical parameters, laboratory indices and characteristics of SHPT lesions were analyzed to assess the risk factors associated with hoarseness. Results Hydrodissection was successfully performed in all the enrolled patients according to the protocol. Six periparathyroid fascial spaces were hydrodissected, depending on the location of the SHPT lesions. The incidence of hoarseness due to recurrent laryngeal nerve injury, the most common complication of thermal ablation for SHPT lesions, was lower in the improved group than in the traditional group (6.9% vs. 13.0%, p = 0.044). The median hoarseness recovery time in the improved group was shorter than that in the traditional group (2 vs. 6 months, p < 0.001). There was no difference in technical efficiency between the two groups (improved group vs. traditional group: 75.0% vs. 70.6%; p > 0.05). Conclusions Compared with traditional hydrodissection, improved hydrodissection based on periparathyroidal fascial spaces could enhance safety during MWA for SHPT.

Technical Efficiency Difference between Model and Non-Model Smallholder Wheat Producer Farmers in Lode Hetosa Woreda of East Arsi Zone of Oromia Regional State, Ethiopia

The smallholder farming system in Ethiopia is largely dominated by staple food crops which are exposed to managerial inefficiency and factors beyond the control of the farmer. Accordingly, the study aimed to analyze technical efficiency differences between model and non-model smallholder wheat producer farmers and inefficiency determinants in Hetosa Woreda of East Arsi Zone. The Stochastic Production Frontier Cobb-Douglas functional form was used. To analyze cross-sectional data collected from 700(350 model and 350 non-model) farmers for the production year of 2018/19, descriptive and econometrics data analysis techniques were used. The findings of the descriptive analysis showed that model farmers produced an average of 32.82 and non-model farmers produced on average 29.36 quintals of wheat per hectare. The value of the discrepancy ratio (γ) which indicates technical inefficiency variability was 89%, 82%, and 84% for the model, non-model, and overall farmers respectively. The mean technical efficiency score was 81%, 79%, and 80% for the model, non-model, and overall farmers respectively. Land, fertilizer, and labor statistically significantly affected the wheat output of model farmers, whereas all input variables statistically significantly affected the wheat output of non-model farmers. In addition, model farmers' technical inefficiency was statistically significantly determined by the mode of plowing, mode of harvesting, shock, training, and marketing, and that of non-model farmers’ technical inefficiency was statistically significantly affected by mode of harvesting, level of education, land fragmentation, and marketing. Thus, training, market, education, and strategic plan to mitigate factors beyond the control of farmers need to be considered for improvement to make farmers more productive and technically efficient in wheat production in the study area.

Efficiency evaluation of urban employee's basic endowment insurance expenditure in China based on a three-stage DEA model.

With the deepening of population aging, the expenditure of basic endowment insurance in China is increasing. The urban employees' basic endowment insurance(UEBEI) system for is an important part of China's basic social endowment insurance system, which is the most important institutional guarantee for the basic needs of employees after retirement. It not only relates to the living standards of retired employees but also relates to the stability of the whole society. Especially considering the acceleration of urbanization process, the financial sustainability of the basic endowment insurance for employees is of great significance for safeguarding the pension rights of retired employees and realizing the normal operation of the whole system, and the operation efficiency of urban employees' basic endowment insurance(UEBEI) fund inevitably becomes the focus of increasing attention. Based on the panel data of 31 provinces in China from 2016 to 2020, this paper established a three-stage DEA-SFA model, and compared the differences of comprehensive technical efficiency, pure technical efficiency and scale efficiency with radar chart, aiming to explore the operating efficiency of the UEBEI in China and how environmental factors affect it. The empirical results show that at present, the overall level of the expenditure efficiency of the UEBEI fund for urban workers is not high, and all provinces have not reached the efficiency frontier level, and there is still a certain space for efficiency improvement. Fiscal autonomy and elderly dependency ratio are negatively correlated with fund expenditure efficiency, while urbanization level and marketization level are positively correlated with fund expenditure efficiency. The regional difference of fund operation efficiency is significant, from high to low, it is East China, Central China and West China. Reasonable control of environmental variables and narrowing of regional economic development and fund expenditure efficiency differences can provide some enlightenment for better realization of common prosperity.

North-south regional differential decomposition and spatiotemporal dynamic evolution of China's industrial green total factor productivity.

"Green development" has become the way for countries around the world to strengthen industries, and it is an important part of China's high-quality economic development. The key for China to strike a balance between economic growth and environmental management is to optimize green total factor productivity (GTFP). This paper measures the GTFP of industry in 30 provinces of China from 2003 to 2019, based on the perspective of energy and carbon emission constraints. It empirically examines the spatial disequilibrium and dynamic evolution of industrial GTFP in China using Dagum Gini coefficients, Kernel density estimation, and Markov chain analysis. The study finds that, (1) although China's industrial GTFP is not high, it shows an increasing trend. The industrial GTFP in the southern region is higher than that in the northern region. (2) Technical efficiency is the shortcoming of China's industrial GTFP improvement. Technological progress is the main driving force of China's industrial GTFP improvement. (3) The relative and absolute differences in China'' industrial GTFP, technical efficiency, and technological progress have all shown a widening trend. Regional differences between the southern and northern regions are the main source of relative differences in industrial GTFP, technical efficiency, and technological progress. (4) China's industrial GTFP shows a clear "club convergence" phenomenon and the "Matthew effect." However, after the introduction of the spatial factor, the "club convergence" phenomenon and the "Matthew effect" have weakened. The driving effect of industrial GTFP on neighboring provinces is stronger in the south than in the north. This paper enriches the analysis of industrial GTFP and provides an important basis for the coordinated regional development of Chinese industry.

Pengaruh Penggunaan Benih Bersertifikat Terhadap Produksi dan Efisiensi Teknis Usahatani Kentang di Kecamatan Pangalengan

The average food consumption for potato commodities in Indonesia is 2.20 kg/capita/year, an increase of 9% from 2013. The need for potato consumption will increase as Indonesia's population increases. The growth rate of potato production is lower than that of potato consumption; therefore, it is necessary to increase potato productivity. The productivity level of potatoes in Indonesia is still low and fluctuates, with an average potato productivity of 18.23 tons/hectare. Increasing potato productivity can be done by increasing technical production efficiency or using certified seeds. The purpose of this study is to analyze the effect of using certified seed on the production and technical efficiency of potato farming in the Pangalengan district as one of the potato production centers in Bandung Regency. The technical efficiency analysis of the potato crop was performed using the Cobb-Douglas Stochastic Frontier Analysis production function with a total of 70 potato farmers as respondents, with details that 30 persons are using certified potato seed and 40 persons are using not certified potato seed. The results indicate that using certified potato seed has increased potato production. Overall, the average technical efficiency of potato production in the Pangalengan district is 70.10%, which means efforts to improve efficiency are still required. There is no significant difference in technical efficiency between potato farms using certified seed and not certified seed which means using certified potato seed has yet to be able to increase the technical efficiency of potato farms. One of the factors that significantly affect technical efficiency is land ownership status.

Technical Efficiency of Agriculture in the European Union and Western Balkans: SFA Method

Improvements in productivity and efficiency, together with agricultural modernization, are crucial in the process of future sustainable development. As Western Balkan (WB) countries are in the process of integration into the European Union (EU), the importance of agricultural efficiency in an economic and environmental context and the actuality of the problems of the agricultural sector are very important. In that context, the paper’s main goal is to examine agriculture’s technical efficiency in the EU and WB. The additional goal is to group analyzed countries by agricultural performances. A stochastic frontier analysis (SFA) is used to calculate the technical efficiency of agriculture. Results have shown a significant difference in technical efficiency between WB and the EU. Furthermore, the cluster analysis has indicated the connection between overall economic development and agricultural development, partially “deformed” by agri-environmental and climate conditions. The exogenous factors do not have a crucial influence on the overall technical efficiency of agriculture in observed countries, indicating that the endogenous factors must be improved. The paper impacts recommendations for optimizing the use of inputs and improving the educations of farmers in WB countries to achieve economic and environmental goals.

The impact of agricultural extension type and form on technical efficiency under transition: An empirical assessment of wheat production in Uzbekistan

Agricultural Extension Services (AES) have the potential to increase agricultural productivity and sustainability. Although an extensive body of literature investigates into the impact of AES on technical efficiency in agricultural production, analyses of the combined effect of extension types and forms are still hard to come by within the international literature. Using the example of wheat farmers in Uzbekistan, this study is the first to assess the combined impact of extension types and forms. Using cross-sectional data for 323 wheat farmers, we employ a single-stage Maximum Likelihood procedure for a stochastic frontier production function for three different specifications. Specifically, extension frequency, type of extension systems, and a set of extensionist participatory approaches are purposefully distinguished in the analysis alongside other farm characteristics and observed covariates. Our study found that there are still considerable technical efficiency gaps in wheat production. In particular, aside farmers’ characteristics, the frequency of extension visits and extension participatory approaches are significant in explaining technical efficiency differences among wheat farmers in Uzbekistan and would thus be conducive to close mentioned efficiency gaps. We suggest that under a simplified state regulatory framework, a well-structured system of AES should be client-oriented, cost-efficient, and demand-driven. In order to close existing inefficiency gaps, all farmers should have access to participatory extension services.

Measurement of Green Total Factor Productivity and Its Spatial Convergence Test on the Pig-Breeding Industry in China

The pig-breeding industry is one of the pillar industries of China’s agriculture. Improving the green total factor productivity of pig breeding is the basis for ensuring the stable supply of pork, and is also the key to the green transformation of the pig industry. The existing studies about the green total factor productivity of pig breeding lack an analysis of regional coordination and the spillover of spatial technology efficiency at the macro level, and most studies focus on the impact of agricultural production’s environment pollution and other undesirable outputs. Based on the input–output index system of the pig-breeding industry’s green production, the DDF directional distance function model and the Malmquist–Luenberger (ML) productivity index were combined to measure the green total factor productivity of the pig-breeding industry. Moran’s I-Theil index model was used to measure and reveal the technical efficiency differences among the dominant regions of the pig-breeding industry in China and the σ-convergence test was adopted to reveal the convergence trend of green total factor productivity. The results showed that: (1) The growth level of green total factor productivity of pig breeding in China was generally low from 2006 to 2018, and there were obvious regional and scale differences. (2) The green total factor productivity of pig breeding in each province had spatial autocorrelation; that is, there was technology spillover. From 2006 to 2018, with the advance of time, a pattern of gradual evolution from low-level equilibrium to high-level imbalance was formed. (3) Through the convergence test, the convergence trend of large and medium-scale development between different regions fluctuated, while the convergence trend of small-scale development between different regions was not obvious. Therefore, it is necessary to increase investment in technological innovation, promote the large-scale and standardized development of the pig-breeding industry, and strengthen the promotion of technology in producing areas with advantages in pig breeding.

Impact of PMKISAN Scheme on Production and Efficiency of Paddy Cultivation in Tamil Nadu, India

Aims: This study aimed to estimate the impact of Direct Cash Transfer scheme on production and technical efficiency of paddy cultivation.&#x0D; Study Design: Multi-stage random sampling was used.&#x0D; Place and Duration of Study: Sample: Three districts namely Dharmapuri, Thoothukudi and Thanjavur were randomly selected for the study during December 2021-March 2022.&#x0D; Methodology: Both primary and secondary were used in the study. A pre-tested interview schedule was used to collect the information on general characteristics, cost of cultivation and resource inputs used were collected from 90 beneficiaries and 90 non-beneficiaries. Thus, a total of 180 sample respondents. &#x0D; Results: Of the total PMKISAN assistance (Rs. 6000) about 5.16% (Rs. 3300) of the amount has been spent for cultivation purpose. The average cost of cultivation among the beneficiaries was lesser than non-beneficiaries and the net returns were more among the beneficiary than the non-beneficiary. The major share of operational cost incurred in paddy cultivation for beneficiaries and non-beneficiaries was towards human labour followed by machine labour and fertilizer cost. The estimated mean technical efficiency for PMKISAN beneficiaries was 84% and there is a chance of improvement for increase in yield. The difference in yield and technical efficiency may be due to assistance provided to the farmers, through which the cost of cultivation was less and were able to adopt new technologies.&#x0D; Conclusion: Overall, the PMKISAN beneficiaries were able to use the PMKISAN assistance for procuring seeds, fertilizers and wages for labour. The beneficiaries were technically efficient in paddy production and also the cost of cultivation was lesser when compared to non-beneficiaries.

Identifying the Configurations to Operating Efficiency in China’s Life Insurance Industry Using Fuzzy-Set Qualitative Comparative Analysis

This paper aims to measure the operating efficiency of 22 Chinese domestic and foreign-funded life insurance companies from 2013 to 2017 and outline the path to achieve high-quality development. The DEA-Malmquist was used to evaluate the total factor productivity on the sample of 22 Chinese domestic and foreign-funded life insurance companies. A fuzzy set qualitative comparative analysis (fsQCA) was also used to analyze the configuration of determinants affecting technical efficiency. The results show that the overall operating efficiency of life insurance companies in China is relatively satisfying. The changes in total factor productivity are mainly caused by changes in technical efficiency and changes in efficiency. However, changes in scale efficiency have little effect on Chinese domestic and foreign-funded life insurance companies. There is a significant difference in the operating efficiency between Chinese domestic and foreign-funded life insurance companies. In contrast, the operating efficiency is slightly higher than that of foreign-funded life insurance companies, which is mainly reflected in the difference in pure technical efficiency. The realization path of a life insurance company’s operating efficiency is primarily composed of high employee education and low overclosing ratio, high employee education and low reinsurance ratio, and all-factor positive investment. The weak employee quality and excessive overclosing are the main reasons for the low operating efficiency of some enterprises. This paper systematically analyzes the impact of the organization’s internal structure on the operating efficiency of life insurance companies. Finally, based on the configuration perspective, we explain the internal logic and path of achieving better operating efficiency. In the end, we also provide decision-making references for further improving the efficient operation of life insurance companies in China.

Application Research of Fuzzy Control Comprehensive Model in Agricultural Economic Management

Agriculture is the basic industry of the national economy, and the transformation of agricultural economic growth mode is of great significance to ensure the supply of agricultural products and improve the quality of agricultural products. Therefore, it is the only way to solve this problem to change the way of agricultural economic growth through scientific and technological investment, industrial structure adjustment, and other methods. Based on the fuzzy comprehensive evaluation method, this paper analyzes various factors of agricultural economic development and establishes a multilevel fuzzy comprehensive evaluation model of the development status of agricultural economic system. The stochastic frontier production function model of the fuzzy control comprehensive model is applied to decompose the agricultural labor productivity, and the counterfactual thinking and distribution method are used to analyze the influence of these factors on the evolution of provincial agricultural labor productivity differences. The value inequality decomposition method measures the contribution of each factor to the provincial agricultural labor productivity difference as well as the contribution of exogenous explanatory variables to the provincial agricultural technical efficiency difference. It is concluded that the relative contribution rate of nonagricultural activities to the difference in agricultural technical efficiency is the largest, and the average relative contribution rate reaches 74%. The improvement of agricultural labor productivity cannot rely solely on the increase in the input of agricultural material factors, but should rely on science and technology.

Evaluation of Green Logistics Efficiency in Northwest China

This paper develops an index system for assessing green logistics efficiency in Northwest China with the goal of “double carbon” (peak carbon dioxide emissions and carbon neutrality). The study employs a three-stage data envelopment analysis model of super efficiency to assess the spatial and temporal efficiency of the green logistics industry in Northwest China from 2010 to 2019. Our findings reveal that the overall logistics efficiency in Northwest China fluctuates. Each province has a high pure technical efficiency, but significant regional differences in comprehensive technical efficiency and scale efficiency are apparent. In Northwest China, government support and science and technology levels have a greater impact on green logistics efficiency. Based on the implementation of the “double carbon” strategy, this study offers pertinent insights and suggestions for the high-quality development of the green logistics industry in Northwest China.

Analysis of technical efficiency of dry season rice production in saline and non-saline areas of Bangladesh

Maintaining productivity and technical efficiency of salinity affected rice farming is essential for food security in Bangladesh, given trends of increasing rates of salinity incursion. Using Bangladesh Integrated Household Survey (BIHS) data, collected by International Food Policy Research Institute (IFPRI), and a translog stochastic production estimation approach, we estimated the differences in technical efficiency between saline and non-saline Boro rice producers. The findings indicate that, although mean efficiency of Boro rice producers in non-saline areas (83%) is higher than that of saline areas (73%), the pooled model suggests that saline farmers are more technically efficient compared with non-saline farmers. Despite this, the per hectare output (productivity) of Boro rice is significantly lower in saline areas (5479.3 kg) compared with non-saline areas (5880.5 kg). Moreover, saline area farmers use more irrigation and family labour to maintain Boro rice output, but more irrigation decreases marginal productivity because of salinity effects. Results also show that there are socio-economic differences between farmers in saline and non-saline areas. The implications of this study are that increased levels of salinity will reduce rice production, as variations in farming systems and technical efficiency are not sufficient to compensate for lost productivity.

Part-Time Farming and Scale Efficiency

While many studies have compared the technical efficiency of part-time and full-time farms, we add to the existing literature by extending this analysis to scale efficiency. Based on a sample of crop farms in Austria between 2010 and 2017, we find that part-time farms are more scale efficient when they are evaluated with respect to their production technology and the difference in scale efficiency between part-time and full-time farms increases over time. Although we do not find any significant difference in technical efficiency, full-time farms have a higher technological change. Furthermore, an analysis of the determinants of scale efficiency confirms that factors facilitating farm growth also increase scale efficiency.