Production Inefficiency Research Articles

How Much Technically Efficient Is The South Asian Region? An Intra-Regional Comparison Among Its Affiliates

This study presents an analysis of the intra-regional performance of South Asian economies in terms of their productive efficiency during the period 1985–2019. A window data envelopment analysis (dea) based technique with bootstrapping is used to model the production frontier for seven South Asian economies to estimate their efficiency levels. The results show substantial differences in technical efficiency levels across South Asian economies and thus, the existence of vast potential to catch up with the best practices is revealed among these economies. On an average, the extent of technical inefficiency in south asia is about 46.92% per annum after adjusting for statistical bias. This is indicative of a huge gap in laggard and best practices within region. Both managerial and scale components of efficiency performance are equally responsible for observed production inefficiency in south asia. The existence of managerial inefficiency reflects failure of policy planners among affiliate countries to catch-up the best practices within South Asian region. However, the observed scale inefficiency (SIE) is because of the dominance of scale economies over diseconomies that urges need of enlarging cooperation among member nations. JEL Codes: F02, D240, C610

Evaluation of Sustainable Development Policy of Sichuan Citrus Industry in China Based on DEA–Malmquist Index and DID Model

The citrus industry is an important fruit industry, with the widest cultivation area and the most crucial economic status in southern China. Evaluating the sustainable development of citrus industry is the basis for accurately grasping the food safety situation and scientifically formulating industrial development policies. This research aims to evaluate the sustainable development policies of citrus industry in 20 citrus-growing cities and states in Sichuan province in China from two dimensions of efficiency and effect. To this end, this study develops a DEA–Malmquist index and DID model using city and state panel data from 2009–2020. The results have the following implications: (1) The low technical efficiency and technological progress index together cause the general inefficiency of citrus production in Sichuan cities and states, and the improper scale of inputs is the main reason for the low technical efficiency. (2) The implementation of sustainable development policies has increased citrus total factor productivity and widened the gap between cities and states in Sichuan. (3) Excessive production factors and financial inputs have hindered the sustainable development of the Sichuan citrus industry.

State ownership and zombie firms: Evidence from China's 2008 stimulus plan

AbstractWhether and how are zombie firms associated with a crisis‐rescue plan? We examine this issue through the channel of state‐owned enterprises (SOEs). We find that, after China's 2008 stimulus plan, a firm in the city with a high SOE share is more likely to become a zombie firm. This result may be driven by the fact that government‐led investment, through SOEs, tends to focus more on employment‐related projects than efficient ones, particularly during the crisis period. Resource misallocation associated with the crisis‐rescue plan may cause production inefficiency, which leads to the emergence of zombie firms.

Use of Predictive Models for Labor-Productivity Loss in Settling Disputes

Given inherent difficulties in construction, optimizing labor efficiencies is paramount to project success. Research described in this article conducted demonstrates that an analysis of planned activities in a critical path methodology (CPM) schedule may be used to forecast future productivity inefficiencies. Specifically, this study relies on the concept of CPM schedule’s density, which is defined as the number of overlapping like-trade activities on any given workday. This metric is directly related to the required labor resources required to complete that work within the activities’ planned durations. Schedule density increases where more planned activities overlap with each other; for instance, occurrence of such increases is common when the schedule is accelerated. Regression models were derived using metrics drawn from CPM schedule updates’ activities and durations and compared to actual labor productivity experienced. Strong correlation findings support development of predictive models that quantify potential labor inefficiencies before they occur. However, the question remains as to the strength and applicability of predictive models in formal litigation. This paper presents findings of this research and discusses how such findings may be used to facilitate settlement in dispute resolution procedures.

DSF Core: Integrated Decision Support for Optimal Scheduling of Lifetime Extension Strategies for Industrial Equipment.

This paper proposes a generic algorithm for industries with degrading and/or failing equipment with significant consequences. Based on the specifications and the real-time status of the production line, the algorithm provides decision support to machinery operators and manufacturers about the appropriate lifetime extension strategies to apply, the optimal time-frame for the implementation of each and the relevant machine components. The relevant recommendations of the algorithm are selected by comparing smartly chosen alternatives after simulation-based life cycle evaluation of Key Performance Indicators (KPIs), considering the short-term and long-term impact of decisions on these economic and environmental KPIs. This algorithm requires various inputs, some of which may be calculated by third-party algorithms, so it may be viewed as the ultimate algorithm of an overall Decision Support Framework (DSF). Thus, it is called "DSF Core". The algorithm was applied successfully to three heterogeneous industrial pilots. The results indicate that compared to the lightest possible corrective strategy application policy, following the optimal preventive strategy application policy proposed by this algorithm can reduce the KPI penalties due to stops (i.e., failures and strategies) and production inefficiency by 30-40%.

Production efficiency and cost reduction potential of biodiesel fuel plants using waste cooking oil in Japan

Biodiesel fuel (BDF) is a potentially carbon-neutral fuel that could play a potentially important role in preventing global warming. However, its high production cost poses a challenge for many BDF producers. To establish an efficient method for BDF production and increase its cost competitiveness, the production efficiencies of 35 BDF plants in Japan, which produce BDF from waste cooking oil, were evaluated. Moreover, the cost reduction potential associated with improved efficiency was estimated. The empirical analysis revealed that (1) approximately 92% of the BDF plants have inefficient production; (2) they exhibit two predominant types of inefficiencies, technical and scale inefficiencies, and (3) improvement of production inefficiency can lead to an average production cost reduction of 3.52 yen per liter of BDF. To increase the production efficiency, it is important to improve the quality of the waste cooking oil used and increase the production scale. It is recommended that operators of inefficient BDF plants learn the production activities of the most efficient plants identified in this study. Furthermore, government policies focused on efficient BDF plants are essential to increase BDF production with limited resources.

EFFICIENCY ANALYSIS OF OPEN FIELD TOMATO PRODUCTION IN PUNJAB: A NON PARAMETRIC DATA ENVELOPMENT ANALYSIS APPROACH


 
 
 This study was designed to calculate production efficiency (technical, economic and allocative) and determinants of inefficiency in open field tomato production in Punjab, Pakistan. Simple random sampling was used for primary data collection from 70 farmers in 2014. Data envelopment analysis explored the mean of technical (79.4%), allocative (58.1%) and economic (45.9%) efficiency. It showed the capability of 21.6 and 41.9% reduction in inputs and total cost, respectively with same output and technology. For sub groups, technical efficiency (92.1%) was more for medium farmer while allocative (74.2%) and economic efficiency (63.8%) was higher for large farmer. Tobit model explored the negative impact of education, experience, extension services and credit availability on inefficiency. Impact on inefficiency was positive for family size, area and vegetable market distance.
 
 

Innovative strategy to achieve food security in the Republic of South Ossetia

Achieving food security is a pressing issue for many countries. Over the past years, the global emphasis has transitioned from merely comprehending the challenge to actively formulating policies and crafting innovative solutions to ensure food security worldwide. This research specifically targets South Ossetia’s food security status and the potential innovative strategies in agriculture to enhance it. Utilizing a blend of analytical, economic-statistical, and benchmarking methodologies, combined with data sourced from South Ossetia’s official statistics and various Russian agencies, the findings paint a concerning picture. South Ossetia’s agriculture is facing escalating difficulties characterized by production inefficiencies and foundational economic hurdles. Alarmingly, the region’s food security is teetering on the edge, evidenced by a glaring deficit of 47.5 thousand tons in basic foodstuffs production in 2022 alone. For South Ossetia to navigate these challenges and attain its food security goals, a two-pronged approach is pivotal. First, an innovative overhaul of its agro-industrial sector is necessary, promoting its seamless integration with the broader Russian economic framework. Subsequently, aligning with the EAEU member states’ food systems could further reinforce this. Such transformative initiatives in agriculture will not only secure food supply but can also rejuvenate the region’s social infrastructure and elevate its attractiveness for migration.

Efficiency of Pineapple Production and its Determinants: A Case Study of Manipur

The study was conducted in the hills and valley regions of Manipur with the objectives of assessing the level of technical efficiency and determining the factors influencing the technical inefficiency of pineapple production in the state during the year 2022-23. A total of 240 farmers were interviewed in person to gather primary data. A stochastic frontier technique was used in the study to achieve the stated objectives. Results showed that pineapple production was a profitable business. However, the study’s efficiency score of 0.603 indicated that farmers were operating inefficiently. The estimated stochastic production frontier model showed an adverse association between the cost of the sapling, transportation, fertilizer, and manure to the efficiency of pineapple production. According to the technical inefficiency effect model, the only factors that positively explained the technical inefficiency in pineapple production were the farmers’ age and household size while factors like education, years of farming experience, credit availability, and contact with extension agents had a negative effect. Therefore, the study concludes that attracting youth in agriculture, extension services, and production inputs availability has to give due attention to augment the effectiveness of pineapple production across the state and nation as a whole.

Production Efficiency Analysis of Oil Palm Plantations: Stochastic Frontier Approach

Palm oil is a commodity in the plantation sector that has an important role in the economy of North Sumatra Province. The oil palm plantation sector is one of the main sources of income for the people in South Labuhan Batu regency. The productivity of smallholder oil palm plantations is relatively lower when compared to the productivity of oil palm managed by large plantations. This study aims to determine the factors that influence the production and technical inefficiency of oil palm production. The research location is in South Labuhanbatu Regency, North Sumatra Province, which was carried out in 2020. Sampling was carried out using a purposive method, namely as many as 45 oil palm farmer households. The approach used is the stochastic frontier production function. Maximum likelihood estimation method used. The results of the analysis show that the area and the number of workers significantly affect the production of oil palm farmers. The technical inefficiency factor is caused by the age of the farmer, and the number of household members involved in oil palm farming. To measure the use of all resources can be used the concept of return to scale. The sum of all the elasticity responses to the use of all inputs estimated using the maximum likelihood method of the stochastic production function is 1.09, which indicates that an increase in all available inputs leads to a greater increase in farmers’ income. Government support is needed in the form of farming practice improvement and access to capital to achieve production at the frontier point with an opportunity of 10.93 %. Keywords: Increasing return to scale, palm oil, stochastic frontier, technical efficiency

A Novel HydroEconomic - Econometric Approach for Integrated Transboundary Water Management Under Uncertainty

The optimal management of scarce transboundary water resources among competitive users is expected to be challenged by the effects of climate change on water availability. The multiple economic and social implications, including conflicts between neighbouring countries, as well as competitive sectors within each country are difficult to estimate and predict, to inform policy-making. In this paper, this problem is approached as a stochastic multistage dynamic game: we develop and apply a novel framework for assessing and evaluating different international strategies regarding transboundary water resources use, under conditions of hydrological uncertainty. The Omo-Turkana transboundary basin in Africa is used as a case study application, since it increasingly faces the above challenges, including the international tension between Kenya and Ethiopia and each individual country’s multi-sectoral competition for water use. The mathematical framework combines a hydro-economic model (water balance, water costs and benefits), and an econometric model (production functions and water demand curves) which are tested under cooperative and non-cooperative conditions (Stackelberg “leader–follower” game). The results show the cross-country and cross-sectoral water use—economic trade-offs, the future water availability for every game case, the sector-specific production function estimations (including residential, agriculture, energy, mining, tourism sectors), with nonparametric treatment, allowing for technical inefficiency in production and autocorrelated Total Factor Productivity, providing thus a more realistic simulation. Cooperation between the two countries is the most beneficial case for future water availability and economic growth. The study presents a replicable, sophisticated modelling framework, for holistic transboundary water management.

Economic growth, poverty traps and cycles: productive capacities versus inefficiencies

PurposeThe authors analyse a growth model to explain how economic fluctuations are primarily driven by productive capacities (i.e. capacity utilization driven by innovations and know-how) and productive inefficiencies.Design/methodology/approachThis study’s methodology consists of the combination of the economic growth model, à la Solow–Swan, with a sigmoidal production function (in capital), which may explain growth, poverty traps or fluctuations depending on the relative levels of inefficiencies, productive capacities or lack of know-how.FindingsThe authors show that economies may experience economic growth, poverty traps and/or fluctuations (i.e. cycles). Economic growth is reached when an economy experiences both a low level of inefficiencies and a high level of productive capacities while an economy falls into a poverty trap when there is a high level of inefficiencies in production. Instead, the economy gets in cycles when there is a large level of the lack of know-how and low levels of productive capacity.Originality/valueThe authors conclude that more capital per capita (greater savings and investment) and greater productive capacity (with less lack of know-how) are the economic policy keys for an economy being on the path of sustained economic growth.

Effects of Trigger Point Dry Needling on Strength Measurements and Activation Levels of the Gluteus Medius: A Quasi-Experimental Randomized Control Study.

Latent trigger points have been identified as a source of impaired muscle function giving rise to a reduction in force production and alterations in muscle activation patterns and movement efficiency. There is limited investigation into the effectiveness of a treatment in reducing these clinical manifestations. To investigate whether the application of trigger point dry needling (TDN) to latent trigger points within the gluteus medius musculature affected strength measurements and muscle activation levels immediately following intervention. Quasi experimental, single group, pretest-posttest, randomized control study. A control and an intervention side were randomly assigned for each participant (N = 39). Hand held dynamometer (HHD) force measurements and raw surface electromyography (sEMG) amplitude readings were recorded during maximal volitional isometric contractions of the gluteus medius in two separate positions before and after application of TDN. Comparison of within and between group data were conducted. A statistically significant interaction between time (pre-TDN to post-TDN) and groups (intervention side and control side), p < 0.001 was found for HHD measurements in both positions. Post hoc analysis revealed a statistically significant difference (p < 0.001) for all comparisons in the side lying neutral (SL0) position, while statistically significant differences (p < 0.001) were found for pre and post-TDN measurements within intervention side as well as between the intervention and control side for post-TDN measurements in the side lying internal rotation (SLIR) position. For sEMG amplitude measurements, statistically significant differences were found only in the SL0 position for within group comparisons on the intervention side (p = 0.009) and for between group comparisons for post-TDN measurements (p = 0.002). Application of TDN to latent trigger points within the gluteus medius can significantly increase gluteus muscle force production immediately following intervention while reducing the level of muscle activation required during contraction. Level 2.

Research on the Impact of the Industrial Cluster Effect on the Profits of New Energy Enterprises in China: Based on the Moran’s I Index and the Fixed-Effect Panel Stochastic Frontier Model

The new energy industry is an imperative method through which to achieve sustainable development. Industrial clusters are one of the main states in the development of the new energy industry. However, few existing studies discuss the impact of industrial clusters on the relevant indicators of new energy enterprises. Based on panel data for the period 2011–2021 of 39 sample enterprises listed in China in 2011 and before, this empirical study first analyzes the spatial autocorrelation of the sample enterprises using the Global Moran’s I and Local Moran’s I, and then treats the Local Moran’s I of enterprises as a perturbation factor of the inefficiency term, using a fixed-effects panel stochastic frontier model to empirically analyze the effect of industrial clusters on the profits of the sample enterprises. The following is found: (1) The layout of new energy enterprises in China presents a specific physical spatial agglomeration phenomenon. Additionally, the layout of profit indicators shows spatial correlation to some extent. (2) When the homogeneity of clustering enterprises increases, the cluster effect can improve profits by reducing inefficiencies in enterprise production. This study provides valuable academic suggestions for the development of the new energy industry.

Technical Efficiency of Cowpea (Vigna unguiculata (L.)Walp) Production in Nasarawa State, Nigeria

This study evaluated technical efficiency of cowpea production in Nasarawa State, Nigeria. The specific objectives were to determine socio-economic characteristics of the cowpea farmers, estimate costs and returns of cowpea production, evaluate the technical efficiency of cowpea production, evaluate the determinants of technical efficiency of cowpea production, and identify the constraints militating against cowpea production in the study area. Multi-stage sampling technique was adopted and employed. Data for this study was collected from the primary sources through well-structured questionnaires. The results of the analysis show that majority (79%) of the sampled cowpea farmers were male, the average age of the sampled farmers was 45 years indicating that they are still active and agile operating at a small scale level of 2.14 ha farm size. The study further shows that cowpea production is a profitable agribusiness with 2.8% return on investment. Factors that are statistically significant influencing the total output of cowpea production by the famers in the study area were seed (P&lt;0.05), organic manure (P&lt;0.01), chemical fertilizer (P&lt;0.01) and agrochemical (P&lt;0.05) while the factors influencing inefficiency of cowpea production were sex (P&lt;0.01) marital status (P&lt;0.01), education level of farmers (P&lt;0.01), occupation (P&lt;0.01) and household size (0.01). The farmers were able to attain 78% level of technical efficiency with inefficiency gap of 22% of inefficiency that needs to be filled. The cowpea farmers were faced with following constraints: pest and insect problem, poor storage facilities, poor marketing, access to credit facilities and poor infrastructure. Therefore, the study recommends that farmers should be encouraged to participate more in cowpea production since its production is profitable in the study area, farmers should also be provided with subsidized production inputs by government or non-governmental organizations like insecticides, herbicides, and credit facilities to increase their level of production capacity that will lead to increase in total output, income as well as improved welfare that will liberate them from poverty and make them food secured in the study area.

The Economic Challenges Facing Small Scale Sugarcane Farmers in Malava Sub-County, Kakamega County, Kenya

This study examined the challenges and their effects on sugarcane farming in the Malava sub-county, Kakamega County. The study objectives were to: assess cane transportation problems and establish challenges related to the marketing of sugarcane farmers in the Malava Sub-county. It was undertaken in Malava Sub-county, where sugarcane is the economic backbone and the region’s key cash crop owing to the favourable geographical conditions in Western Kenya. Despite Malava Sub-county’s vast experience in sugarcane farming, production has gone down. Furthermore, such a study is yet to be done in Malava. The study purposed to find out the reasons for inefficiency and insufficiency in sugar production. A descriptive research design was used. Purposive and systematic random sampling techniques were used to select sugarcane farmers from the seven wards; Manda/Shivanga, Butali/Chegulo, Chemuche, East Kabras, West Kabras, and South Kabras, Shirugu/Mugai and the sugar factory stakeholders in the two sugar factories; Butali and Kabras in Malava Sub-county. Malava Sub-county has an estimated population of 65,323 sugarcane farmers. From this population, a sample of 384 was used, based on Mugenda and Mugenda’s formula (2003): n=z2pq/d2, for a target population which is greater than 10,000. Primary data was collected by the use of questionnaires, interview schedules, Focus Group Discussions, and observation guides. Secondary data was collected through a literature search in online journals, theses and publications related to the study topic. Analysis was done using descriptive statistics aided by Statistical Package for Social Sciences (SPSS). The presentation of data was done using tables and graphs. A pilot study in Lwandeti and Chevaywa wards in Lugari Subcounty was conducted to test the validity and reliability of the data collection instruments, and Cronbach’s alpha of 0.8 was good evidence of reliability. Research findings showed that 70% (269) of the respondents accepted that the transportation charges were high compared to other costs of production, 60% (230) of the cane farmers sampled said that there was a ready market for mature sugarcane, while 40% (154) responded negatively and 100% of the farmers indicated that they never witnessed the weighing of their cane. Finally, 79.95% (307) of the farmers accepted that the equipment for the operation of cane farming was mainly the locally available ones for instance, Jembes, Pangas, and ox ploughs; and 83% (319) of farmers failed to uproot old cane due to lack of money to hire the tractors and high technology equipment. Small-scale farmers in the Malava sub-county have low productivity due to these factors. This study recommends that sugar millers cover transportation costs, provide licenses on schedule, introduce mobile weighbridges to allow farmers to observe the weighing of their cane, and the government provide loans for small-scale farmers to acquire village tractors

The production inefficiency of US electricity industry in the face of restructuring and emission reduction

PurposeThe paper investigates the production inefficiency of the US electricity industry in the wake of restructuring and emission reduction regulations.Design/methodology/approachThe study estimates a multiple-input, multiple-output directional distance function, using six inputs: fuel, labor, capital and annualized capital costs of sulfur dioxide (SO2), nitrogen oxides (NOX) and particulate removal devices, two good outputs – residential and industrial-commercial electricity and three bad outputs – SO2, carbon dioxide (CO2) and NOX emissions.FindingsThe authors find that restructuring in electricity markets improves deregulated utilities' technical efficiency (TE). Deregulated utilities with below-average NOX control equipment tend to invest less in these devices, but above-average utilities do the opposite. The reverse applies to particulate removal devices. The whole sample spends more on NOX, particulate and SO2 control systems and reduces its electricity sales slightly. Increased investments in SO2 and NOX control equipment do not reduce SO2 and NOX emissions, but expansions of particulate control systems cut down SO2 emissions greatly. Stricter environmental regulations have probably shifted the production frontier inwards and the utilities farther from the frontier over time.Practical implicationsRestructuring and environmental regulations do not make all utilities invest more in emission control systems. The US government should devise other schemes to achieve this goal.Originality/valueThe paper unveils heterogeneous reactions of US electric utilities in the wake of restructuring and emission regulations.

Measurement of Technical Efficiency of Paddy Farms at Jhenaidah District in Bangladesh: A Case Study by Using Cobb Douglas Production Function

This study's primary goal is to measure the technical efficacy of Amon paddy farms and identify the key variables that significantly influence the degree of technical inefficiency of the sample farms. Using a multistage random sampling technique, 200 Amon rice-producing farms in the Jhenaidah district were sampled for this study. The technical efficacy of Amon rice farms is estimated using the Cobb-Douglas production function method. The Cobb-Douglas production function approach's empirical findings indicate that the technical efficiency of Amon rice production is, on average, 0.95. This suggests that the studied region has a high level of technical efficiency. The factors influencing the degree of inefficiency of the Amon rice farms are also determined using an inefficiency impact model. The production of paddy was favorably connected with farm size, as indicated by the regression coefficient of farm size, which is 0.52. Additionally, it reveals that labor costs, irrigation cost, seed costs, and plowing cost are crucial elements that influence how efficiently Amon rice is produced. According to the estimated inefficiency impact model's findings, the technical inefficiency of Amon rice production is adversely correlated with farm size, age, education, training and credit availability. According to this study, actions to expand credit opportunities, education, and training are essential to lowering rice production's technical inefficiency in the study area. According to the results, it is advised that variables that positively and significantly affect production efficiency be researched and developed for best results toward sustainable agricultural and rural development in Bangladesh.

246 Pathogenic Escherichia Coli Populations within the gut Microbiota of Commercial Swine Herds in the U.S

Abstract Enteropathogenic E. coli (ETEC) is a common infection in neonatal and nursery pigs resulting in significant economic losses from morbidity, mortality, and production inefficiencies. Due to the plasticity of its genome, E. coli can be particularly challenging to manage in swine production systems. Populations of E. coli are continuously changing their genome content via multiple methods of genomic modification to better adapt and compete within ecological niches in the intestinal tract. This ability to acquire genetic information allows individuals within E. coli populations to exchange virulence and antibiotic resistance genes, developing into disease-causing ETEC strains that are difficult to manage with therapeutic antibiotics and other antimicrobial methods. Virulence genes associated with ETEC are harbored within healthy swine populations and usually result in disease when individual strains acquire four or more genes associated with virulence. Monitoring and enumerating the virulence gene pool of E. coli populations within U.S. commercial swine herds indicates that incorporating methods to manage the potentially pathogenic E. coli population in its entirety may be a more effective strategy than focusing on disease mitigation.

TECHNICAL EFFICIENCY IN COWPEA (Vigna unguiculata) PRODCTION IN KANKE, PLATEAU STATE, NIGERIA

Cowpea farmers in sub-Saharan Africa obtain low yields; sole cropping system with the use of improved technologies can yield 1,500-2,000 kg/ha of cowpea. However, 200-500 kg/ha yield is obtained by smallholder farmers. It is a multipurpose crop and despite its importance, high level of inefficiency in its production persists. Therefore, the determinants of efficiency in cowpea production were analyzed; the decline in cowpea yield in the study area was attributable to several socioeconomic variables. Multistage sampling technique was used to select 70 cowpea farmers from the study area. Primary data was collected using structured questionnaires. Descriptive statistics and stochastic frontier production function were the analytical techniques adopted. The results indicated that the socioeconomic characteristics of the respondents significantly affected cowpea production. The mean technical efficiency index was 0.59. Furthermore, the stochastic frontier analysis revealed that coefficients of farm size (0.297), labour (0.394), quantity of seed (0.433) and agrochemicals (0.057) were all positive and statistically significant. Also, the inefficiency model revealed that the coefficients of household size (-0.284), education (-0.493) farm experience (-0.402), extension contact (-0.45) and access to credit (-0.255) were negative but statistically significant Thus, the significant variables were the determinants of technical efficiency in cowpea production. The identified constraints adversely affected farm productivity and efficiency. Formation of cooperatives, adoption of measures that improve access to agricultural credit, agro-services centers, input supply, technology transfer and subsidies; extension services, information exchanges and market linkages are recommended to mitigate technical inefficiency in cowpea production among smallholder farmers.