Frontier Production Function Approach Research Articles

Environmental Efficiency of Monsoon Rice (Oryza sativa) Production between Transplanting and Broadcasting Sowing Methods in Myanmar

Introduction Myanmar relies on rice for its food security and economic significance, ranking seventh in the world for rice exports as of 2021. The most significant concern in rice production is exceeding the recommended nitrogen (N) fertilizer usage rate. Nitrogen is a crucial fertilizer for rice production, but it poses negative environmental consequences, such as nitrous oxide emissions. Therefore, this study intended to assess the technical (TE) and environmental efficiency (EE) of monsoon rice production in Myanmar and compare the efficiencies of broadcasting (BC) and transplanting (TP) sowing methods. Methods A translog stochastic frontier production function approach estimated the output-oriented technical efficiency and environmental efficiency of monsoon rice production. The study conducted face-to-face interviews with 317 farmers in Nay Pyi Taw Union Territory, Myanmar. Results The overall mean TE and EE were 81% and 23%, respectively. The average TE and EE for N fertilizer were 84% and 35% using the TP method and 80% and 20% using the BC method, respectively. Conclusion Our findings confirmed that the TP method was technically and environmentally superior to the BC method. The adoption of the TP method should be promoted by highlighting its positive impacts on achieving sustainable monsoon rice production in Myanmar.

Urban construction land allocation efficiency of urban agglomerations in China based on a stochastic frontier production function approach

This study employs stochastic frontier production function approach to measure the spatial differences and temporal variations of urban construction land allocation efficiency (UCLAE) and its decomposed indicators in the eastern, central, and western urban agglomerations of China. The collection of construction land price data and the application of the Kumbhakar total factor productivity decomposition method in this study address the research gap in the field of urban land efficiency, specifically the inadequacy of studying the efficiency of construction land allocation. The findings reveal that the UCLAE in the central urban agglomerations demonstrates a stable or upward trend, while the UCLAE in the western and eastern urban agglomerations shows a significant decline, albeit with a decreasing trend that has been curbed. The evolution of urban construction land allocation and its efficiency in different urban agglomerations in China supports the theories of unbalanced growth and inverted U-shaped development. To enhance the UCLAE in Chinese urban agglomerations, it is necessary to address the issue of imbalanced land allocation. This requires not only focusing on the construction land allocation in each urban agglomeration but also considering workforce allocation in the western region and capital allocation in the eastern region. Furthermore, it is crucial to synergistically improve the resource allocative efficiency and technical efficiency of Chinese urban agglomerations.

An efficiency of technological innovation of legowo row system on rice farming in Lingsar district of West Lombok regency West Nusa Tenggara Province, Indonesia

This study aims to find the level of inputs significantly affect output, technical and allocative efficiency of technological innovation of Legowo Row System. The descriptive quantitative method with survey techniques was implemented. The cross-sectional data of 2021 to 2022 were gathered from 40 interviewees which determined by quota and proportional random sampling. The Stochastic Frontier Production Function Approach with the Cobb Douglas production function was used for analyzing the data. The arable land area, seeds and chemical fertilizers affected significantly output. Meanwhile, pesticide was not technically efficient, however, it was in the rational stage, while organic fertilizer and labor were inefficient and they were in the irrational stage. Allocative efficiency of input. the arable land, seeds, chemical fertilizers, and pesticides were not economically efficient because the value of the allocative efficiency was greater than one. It indicated that farmers have an opportunity to add more inputs to increase outputs for increasing return. The average arable land area of paddy farming was less than one hectare. The average physical product was 6.92 tons per hectare and Total Revenue was IDR 18,076,941 per hectare. Farmers are strongly suggested to use labeled seed and recommended chemical fertilizers for increasing output.

Smallholder Tomato Production in Mwanza Region- A Technical Efficiency Analysis Approach.

This study measured technical efficiency and its determinants in maize production by small-scale producers in Mwanza region, using a stochastic frontier production function approach. A randomly selected sample of participants in the two districts was used. The Maximum Likelihood estimation procedure was followed to obtain the determinants of technical efficiency and technical efficiency levels of small-scale tomato producers. The minimum and maximum values of technical efficiency were between 20% and 91%, indicating that the least practices of specific producer operates at a minimum level of 20%, while the best practice producers operate at 91% technical efficiency level respectively. The summary results of the mean technical efficiency was 57%. The results indicate that farmers were not fully technically efficient with a mean technical efficiency score of 0.58. The study also revealed that most of the farmers irrespective of the size of the holdings have shown technical inefficiency problems. Experienced farmers were observed to have good measures of technical efficiency. The findings also indicated that significant variables of technical efficiency included household size, labour, fertilizer, seed, educational level, household size, farming experience, and access to extension services were statistically significant by positively impacted on producers’ technical efficiency in the study area.

The Economic Efficiency of Rice Farming Production Factors in Karawang Region

The population's food needs are increasing during the COVID-19 pandemic. If the pandemic lasts longer, it is feared that a food crisis will occur, because residents will scramble to stock up on food. This study aims to analyze the efficiency level of rice productivity and the determinants that affect rice productivity to face the food crisis. This study uses secondary data and primary data, obtained from interviews. The data analysis method used is the Cobb-Douglas Stochastic Frontier Production Function approach with the Maximum Likelihood Estimation (MLE) method and multiple linear regression, which is obtained using Stochastic Frontier Analysis and E-Views 8 analysis tools. Production of land area, seeds, and pesticides have a significant effect on rice production in Karawang Regency. While the use of production factors of urea fertilizer, NPK fertilizer, SP36 fertilizer and labors workdays did not have a significant effect on rice production in Karawang Regency. The level of technical efficiency in rice farming in Karawang Regency reaches 0.9607 which indicates that rice farming is technically close to efficient. The combination of the use of land area production factors, seeds, urea fertilizer, SP36 fertilizer in rice farming in Karawang Regency has not yet reached the optimal point that is economically efficient. The level of elasticity of production in rice farming in Karawang Regency reaches a value of 1.3971 so that rice production has a scale that is increasing return to scale.

Technical efficiency of onion production in Kebbi State: A Stochastic frontier production function approach

This study investigates onion producers’ technical efficiency level in Kebbi State. Purposive and simple random sampling procedures were adopted in selecting 210 onion producers using structured questionnaire from seven local government areas in the state. Descriptive statistics, gross margin and stochastic frontier production models were employed in describing and analyzing the data. The results showed that producers generated an average gross revenue and gross margin of ₦1,085,692.51 and ₦700,388.33 at farm-gate price, respectively. The coefficients of farm size (0.6779), labour (0.1700) and seed (0.01011) were significantly positive in influencing the onion output, while level of education and household size significantly increased technical efficiency of producers. The technical efficiency of the pooled sample ranges from 0.13 to 0.95 and the mean technical efficiency was 0.78. Production constraints recorded were; high cost of input, pest and disease attack, poor pricing and inadequate government support. In conclusion, onion is a viable agribusiness enterprise for wealth generation and reliable means of small producers’ livelihood and lucrative business for large scale producers. The study recommends the need to identify sustainable interventions through government/nongovernmental support policies to improve input supply system, encourage adult education vide extension service and strengthening linkages among onion producers.

English

The need to improve the productivity and quality of pineapple produced to meet demand and supply with international standards necessitates exploring production potentials. So, assessing the technical efficiency of pineapple producers is essential to avoid waste of resources and above all to target advices for improving the productivity of the pineapple producers. Studies conducted on pineapple in Benin have paid less attention to the resource requirements and its determinants. This study estimated technical efficiencies of pineapple producers in Benin and identified some socio-economic factors which influence them. A random sampling was employed to select 253 producers in five districts of pineapple production in southern Benin. Stochastic frontier production function approach using a translog production function was used to estimate the technical efficiencies of pineapple producers, while the inefficiency model was used to determine the socio-economic factor affecting the technical efficiencies. The results showed that the level of technical efficiency ranged from 96.87% to 96.96% with a mean of 96.91%, which suggests that average pineapple output was 3.04% short of the maximum possible level. This implies that producers could still improve the technical efficiency by 3.04%. This study shows that market access, labor, land access, fertilizer access, credit access and soil quality could increase productivity of pineapple production if monitored. Government must take appropriate measures to technically support producers and hope for improved quality of pineapple meeting international standards. Key words: Stochastic production frontier, efficiency, management, pineapple, Benin.

Efficiency, valuation, and pricing of irrigation water in northeastern Tunisia

This study examines the effects of irrigation water use efficiency improvements and citrus price fluctuations on water values in the tree production systems of northeastern Tunisia. It also aims to compare water values with the real price of water as currently paid by farmers and determine the optimal price. Cross-sectional data of a selected sample of 42 citrus farms located in the main producing region of this commodity was used for the analysis. To do so, we used the stochastic frontier production function approach. Empirical findings show that significant inefficiencies do exist in the studied sample of farms. Overall mean technical efficiency and water use efficiency are 78.4% and 44.3%, respectively. Based on these values, simulation analysis indicates that an improvement in water use efficiency combined with an increase in citrus prices could shift the water marginal value curve upwards, which will result in higher water valuation. Results also show that the current water price paid by farmers is much lower than the water value estimated at the level of “theoretical” citrus irrigation requirements. Application of higher irrigation water fees is definitely feasible for the studied production system, however, they need to be accompanied by increased incentives for water use efficiency in addition to better market integration of farmers.

Determinants of technical efficiency among lowland rice farmers in Enugu State, Nigeria: a stochastic frontier production function approach

The study examined the determinants of technical efficiency among lowland rice farmers in Enugu State, Nigeria. Primary data were sourced from rice producers through the use of well designed questionnaires. The study was conducted in four agricultural zones of Enugu State, during the 2017/2018 cropping season. Multistage and simple random sampling technique was employed to select 300 sampled rice farmers for the study. Cobb-Douglas stochastic production frontier function was used for the analysis.The result revealed that (98%)of random variation in the output of farmers was because of their inefficiency in their use of productive inputs in the study area. .Apart from farm size with estimated coefficient of (0.0531), fertilizer (0.0329), seed (0.2319), labour (0.0804) and agro-chemical (0.1711) were underutilized by the rice farmers. The average technical efficiency for the farmers was 0.71 implying that, on the average, the respondents are able to obtain 71% of potential output from a given mixture of production inputs. Thus, in a short run, there is a minimal scope (29%) of increasing the efficiency, by adopting the technology and techniques used by the most technically efficient farmer. High cost of inputs (MS=3.69), bad roads (MS=3.67), poor credit accessibility (MS=3.40) and inadequate storage facilities (MS꞊2.90) were found to be the major constraints of the rice farmers. The study recommends that in order to improve efficiency of resource use by the farmers in the study area, more of labour, seed, fertilizer and agro-chemicals should be utilized.

Technical Efficiency Analysis of shallot Farming in Bima Regency- NTB Province Using the Cobb-Douglas Stochastic Frontier Production Function

Bima Regency is the center for the development and production of the largest shallot commodity in NTB Province. However, the productivity of shallots in Bima Regency still needs to be increased in order to achieve maximum production. The purpose of this study is to analyze the factors that influence shallot farming and to analyze the technical efficiency of farmers in conducting shallot farming. Bima Regency is the research area determined by purposive sampling because it is the center of shallot development in NTB Province. The research data was taken by conducting interviews with 35 respondents who were determined by proportional sampling. Then the data obtained were analyzed using the Cobb Douglas Stochastic Frontier production function approach using the Frontier 4.1 software program. Based on the results of the analysis, it was found that the production factor of the number of seeds, urea fertilizer and labor had a significant effect on the production of shallots at the alpha level of 5 percent while pesticides and KCL fertilizers had a significant effect on the production of shallots at the alpha level of 15 percent. The level of technical efficiency of onion farming in Bima Regency is classified as efficient because it has a value of 0.9569. Farmers can still improve efficiency in onion farming by optimizing the use of superior seeds, labor, balanced fertilizer application, and increasing farmers' skills in adopting innovation and using onion cultivation technology.

The Covid-19 pandemic and technical efficiency of Russian firms: a stochastic frontier production function approach

PurposeThis paper aims to undertake the efficiency analysis in the form of stochastic frontier to estimate a Cobb–Douglas production function by controlling for the heterogeneity across Russian firms by including firm size, ownership, age, innovation activity and market competition.Design/methodology/approachDuring the peak period of Covid-19, certain firms witnessed either a decrease or increase in sales. Using this segregation of firms from World Bank’s Covid-19 impact surveys follow-up to the Enterprise Survey for Russia, this study empirically investigates the determinants of technical efficiency of these firms focusing on the role of government assistance.FindingsThe findings suggest that by segregating firms in terms of sales, different internal factors can enable in steering through pandemic situation besides just depending on external assistance.Originality/valueOne of the few papers to analyse the impact of the pandemic on Russian firms by considering World Bank Covid Survey.

Technical Efficiency and Small Scale Maize Producers in Mwanza Region: A Stochastic Frontier Analysis

This study measured technical efficiency and its determinants in maize production by small-scale producers in Mwanza region, using a stochastic frontier production function approach. A randomly selected sample of participants in the two districts was used. The Maximum Likelihood estimation procedure was followed to obtain the determinants of technical efficiency and technical efficiency levels of small-scale maize producers. The minimum and maximum values of technical efficiency were between 20% and 91%, indicating that the least practices of specific producer operates at a minimum level of 20%, while the best practice producers operate at 91% technical efficiency level respectively. The summary results of the mean technical efficiency was 63%. The main determinants of technical efficiency were labour, farm size, producer’s experience, producer’s age, family size which were all positive and statistically significant. The findings suggest that the average efficiency of small-scale maize producers could be improved by 37% through better use of existing resources and technology. These findings highlight the need for action by government to assist small-scale maize producers improve efficiency.

Spatial-temporal characteristics of industrial land use efficiency in provincial China based on a stochastic frontier production function approach

Improving industrial land use efficiency is of great significance for sustainable industrial development. This paper measures the industrial land use efficiency (ILUE) in China, and explores its spatial-temporal characteristics and influencing factors by using a stochastic frontier analysis (SFA) method. A translog SFA model that characterizes the relationship between industrial land productivity and land input level is established to estimate the efficiency. The estimation results of the SFA model and related tests both show that the stochastic frontier method for ILUE measurement is suitable, and the contribution rate of technical inefficiency term to the mixed error reaches 66.9%. ILUE levels in China show an increasing trend from 2004 to 2017. The average efficiency in the east is the highest. ILUE in the west gradually surpassed that in the northeast in recent years. Reduction of the inter-group difference greatly contributed to the decrease in overall difference, but it is still the main source of overall difference. Results of the inefficiency function show that enterprise ownership structure produces negative impact on ILUE. The specialization of high-tech manufacturing industry, urbanization level and transportation condition have positive influence on ILUE, while the specialization of the chemical and rubber industry and the local financial pressure exert negative effects. Based on these, some policy recommendations for ILUE improvement are further proposed.

Technical Efficiency Analysis of Pineapple Production at Madhupur Upazila of Tangail District, Bangladesh

The main objective of this study is to analyse the technical efficiency and its determinants of pineapple production at Madhupur upazila of Tangail district in Bangladesh. Cross-section data from a sample of 100 pineapple producers during the 2016-17 cropping season were collected by applying multistage random sampling technique. Farm specific technical efficiency scores were estimated using the Cobb-Douglas stochastic frontier production function approach. Empirical findings show that the estimated technical efficiencies of the sampled farmers’ range from 61.61% to 99.95% with the mean technical efficiency of 91.14%. The result suggests that, on an average, farmers in the study area can potentially increase their productivity by 8.86% through more efficient use of inputs. The estimated stochastic production frontier model indicates that input variables such as area, tillage cost, seedling cost and human labour cost were statistically significant variables to increase the quantity of pineapple production. Technical inefficiency effect model identifies that age of farmers had significant positive, but years of schooling and extension contact had significant negative effect on farmers’ inefficiency. The study therefore recommends that government should focus on the ways of attracting and encouraging the youths as they are more efficient and are likely to be able to properly allocate resources and are willing to adopt new technical innovations. Besides, policies and strategies should be directed towards increasing farmers’ formal as well as informal education through the implementation of effective training programmes by the well-trained extension workers.

EVALUATION OF BUD CHIP METHOD TO INCREASE SUGARCANE PRODUCTIVITY (CASE STUDY OF PT PERKEBUNAN NUSANTARA X)

Bud chip method has proven to improve the productivity of sugarcane and produce more efficient, but still a few farmers who use it. This is due to higher production costs and sugarcane farmers are still not technically skilled. This study aimed to analyze the technical efficiency of sugarcane farming with conventional methods and bud chips in the PTPN X and to identify the factors underlying the farmers to use methods of bud chips in the PTPN X. The number of samples used as many as 31 farmers (11 farmers sugarcane bud chip method and 20 sugarcane farmers mule method). This study uses a stochastic frontier production function approach with Stochastic Frontier production function Cobb Douglas and using a logistic regression model. The results showed the value of technical efficiency index sugarcane growers with bud chip method is efficient (TE = 0.98) whereas the sugarcane farmers who use mule systems have not been efficiently categorized (TE= 0.78). Bud chip method has been proven can improve technical efficiency because it can result in higher productivity. The underlying things that make farmers choose the bud chip method are extensive cultivation, education level and ease of sugarcane cultivation with the bud chip method. Therefore, sugarcane productivity in PTPN X can be increased through the use of the bud chip method accompanied by an increase in sugarcane land area and training for farmers. Keywords: technical efficiency, sugarcane farming, bud chip

Estimating Factors Affecting Technical Efficiency in Indian Manufacturing Sector

Existing studies could not estimate the technical efficiency (TE) of firms and it’s affecting factors in the Indian manufacturing sector. So, the present study examines the TE of firms using a stochastic frontier production function approach. Thereupon, it examines the impact of ST thus, firms are efficient in producing surplus production in the manufacturing sector. It is acclaimed that firms can improve production scale using more technological upgradation and advancement. Furthermore, empirical results indicate that process innovations of firms, quality certification of firm, firm acquired process/product patents, in-house R&D expertise of firms, public-technology support institutions of firms, proficiency to improve processes of firms, new or improved products of firms, waste management capabilities of firms, and skilled workforce of firms are appeared effective activities to increase the TE of firms. It is proposed that there is a requirement to increase R&D expenditure, a collaboration of industries with research academia, incentive to researchers and scientists to do extensive research in emerging sectors of technologies and appropriate financial support to firms to boost the growth of Indian manufacturing sector.

Estimation of technical efficiency of broiler production in Peninsular Malaysia: A stochastic frontier analysis

This study analyzed the technical efficiency of poultry production in Peninsular Malaysia using the stochastic frontier production function analysis. Time series data were collected for this purpose. The frontier function involved variables such as farm, farmer and economic variables. An econometric technique of the stochastic frontier production function approach was applied whereby technical efficiency was measured together with a systemic inefficiency farm in the inefficiency model. The results showed that during the early period, technical progress was rather slow, but subsequently improved during the second period. This is due to changing structure and labor saving technologies which focus towards modernization of the broiler industry. However several policy reforms are needed to enhance the global competitiveness of Malaysian broiler industries especially pertaining to technology policy. It can be concluded that improved extension linkage to sensitize the producers of the need to use new technology such as close house systems. In addition, the government must boost efforts to produce and develop genetically improved breeds of poultry of a higher feed conversion ratio.

The Analysis of the Learning Efficiency of Bidikmisi Students

This study aims to determine the factors that influence student learning outcomes and the level of efficiency of the use of these inputs. Respondents in this study were the recipients of the 2015 - 2017 Bidikmisi class at the PIPS Department of the University of Jambi FKIP, namely 53 people. This study uses quantitative methods. Data were analyzed using the Stochastic frontier production function approach. The results showed that, first the use of books / modules had a positive and significant effect on the learning output of bidikmisi recipient students. Second the use of material photocopy material has a positive and significant effect on learning output. And, third, the use of pulses for internet access has a positive and significant effect. The level of student learning efficiency in using learning inputs averaged 94 percent. Student learning inefficiency is influenced by organizational activities and interaction with Bidikmisi managers, significant at α = 5 percent.

Estimation of technical efficiency of dairy farms in central zone of Tigray National Regional State

This paper was conducted to estimate technical efficiency in milk production of dairy farmers in central zone of Tigray National Regional State using stochastic frontier production function approach. Cross-sectional data collected from 163 dairy farmer households was used in the analysis. The result shows that the average technical efficiency of sampled dairy farmer households is about 63.7%. It also shows that labor input by households and average amount of daily cost of crop residue/byproduct do not influence amount of milk produced when stochastic frontier and inefficiency effects are estimated in combination. The estimates of coefficients of other explanatory variables of stochastic frontier production function (i.e. number of lactating cows, average daily cost of purchased supplements, average daily health/veterinary expenditure and average amount of water consumed daily) are found to influence amount of milk produced positively. From the explanatory variables incorporated in inefficiency model sex of household head, extension contact and households off farm income do not influence inefficiency of dairy farmer households while age of household head, years of education of the household head and cattle size are found to influence inefficiency of dairy farmer households negatively. Age squared of household head and household sizes influence inefficiency of dairy farmer households positively. Thus, it can be concluded that by improving dairy farmers' access to education, family planning program and improving bureaucratic environment in providing extension services it is possible to increase amount of milk produced.

Farm-level impacts of eggplant integrated pest management: a stochastic frontier production function approach

ABSTRACTIntegrated Pest Management (IPM) has been widely adopted in eggplant (Solanum melongena L.) production, but rigorous impact studies of IPM is limited in tropical, developing, countries. The study employed the stochastic frontier production function and propensity score matching (PSM) to measure farm-level impacts of IPM technology adoption. A total of 283 farmers were interviewed in 2015. It was determined that adoption of IPM did not affect yield and technical efficiency (TE) level of eggplant growers. Mean technical efficiency was similar for adopters (0.66) and non-adopters (0.65). Adoption of IPM reduces the frequency of pesticide application (35.13%) and pesticide cost (Tk. 11,100), Tk. is Bangladeshi currency, 1 USD = Tk. 80, and IPM adopters maximize profit by reducing cost. Due to a higher profitability, IPM technology for eggplant production can improve income to the growers.