Mean Technical Efficiency Research Articles

ECONOMIC ANALYSIS OF SMALL-SCALE RICE PROCESSING AMONG WOMEN IN LAFIA LOCAL GOVERNMENT AREA OF NASARAWA STATE, NIGERIA

This research investigates the technical efficiency, challenges, and contributions of women in the small-scale rice processing sector in Lafia Local Government Area (L.G.A.), highlighting their dominance in the rice production value chain. Using Data Envelopment Analysis (DEA), the study determined a mean technical efficiency of 57%, indicating significant room for improvement, as inefficiencies suggest a potential 43% increase in processed rice output if less efficient processors adopt better strategies and techniques. The analysis identified multiple challenges faced by women in the sector, including epileptic power supply (87%), the adverse impact of foreign rice on local demand (30%), poor pricing of polished rice (27%), high levels of impurities and broken grains (26%), lack of access to credit facilities (17%), and the poor state of infrastructure, particularly outdated or insufficient rice mills (15%). Furthermore, societal constraints related to marriage and childcare, though less significant, were mentioned by a minority. Despite these limitations, women play a central role in the processing sector, with their resilience and entrepreneurial efforts sustaining small-scale rice production. The study underscores the urgent need for targeted policy interventions to address infrastructural deficits, improve access to credit, stabilize local rice pricing, and enhance technical capacity through training and innovation. By resolving these issues, the efficiency and output of women processors can be greatly enhanced, contributing to improved livelihoods and greater food security in the region.

Do Farm Service Centers Improve Technical Efficiency of Chickpea Growers in Karak District, Khyber Pakhtunkhwa – Pakistan

The central theme of this research endeavor was to assess the impact of Farm Service Centers (FSCs) on the technical efficiency of chickpea growers in District Karak, Khyber Pakhtunkhwa. Data were collected from chickpea growers, including both members and non-members of FSCs. Primary data were gathered from 120 chickpea growers in three villages of Karak district namely Meerzal Banda, Alam Gulkhel Banda, and Zariwaal Banda by using a multistage stratified random sampling technique. A Stochastic Frontier production function was applied to estimate technical efficiency. The results of the Stochastic Frontier Model indicated that most variables were statistically significant. The mean technical efficiency was calculated at 80%, suggesting that chickpea growers could improve their production by 17%. It is recommended that farmers may be supported with new technologies and essential inputs by the government, as these were significant contributors. Furthermore, Farm Service Centers should enhance their services and provide basic inputs at reasonable prices.

Measuring and expounding technical and cost efficiencies of smallholder tomato producers in Northern Ethiopia

While tremendous progress has been achieved in expanding irrigation to improve fruit and vegetable production, the issue of resource use efficiency has received little attention. Tomatoes have economic, nutritional, and health benefits, but their production is very limited for many reasons, including inefficiencies caused by socioeconomic, biophysical, institutional, governance, and meteorological factors. However, there have been very few studies to determine whether tomato producers are technically and economically efficient. Therefore, the study's goal was to assess technical and cost efficiencies, as well as to investigate factors impacting tomato production cost efficiency. Cross sectional data was collected from tomato growers and analysed using Data Envelopment Analysis and Tobit model. The mean technical efficiency was 68 %, revealing 32 % production shortfall and the potential to increase agricultural productivity given present inputs and technologies. The mean cost and scale efficiencies were around 46 % and 37 %, respectively. Farmers operated at high-cost inefficiency compared to their technical and allocative efficiencies. Household size, education, and cash crop planting have all been linked to cost savings. Higher levels of education and larger household sizes are connected with more opportunities for off-farm work, which is likely to reduce on-farm management intensity. The dependency ratio and size of irrigated plots have a detrimental impact on farmer cost efficiency. As the size of irrigated farms grows, farmers become less cost-effective. Education, labor supply, crop types grown, and irrigated farmland all have a significant impact on tomato production cost efficiency. The study suggests that policymakers, development practitioners, and other relevant organizations focus on introducing labour-saving technologies, improving environmental factors, and investing in education and family planning to raise farmer awareness, increase agricultural productivity, and promote cost efficiencies. These can eventually lead to higher food security.

EFFICIENCY ANALYSIS OF YAM PRODUCTION IN YORRO LOCAL GOVERNMENT AREA OF TARABA STATE, NIGERIA

The study examined efficiency of yam (Dioscorea spp.) production in Yorro Local Government Area of Taraba State, Nigeria. The objectives of the study were to determine technical, allocative and economic efficiencies of yam farmers in the study area. Multi-stage random sampling methods were employed to select 247 yam farmers in the area. Data collected were analyzed using stochastic frontier production model. The results of the maximum likelihood estimate of production function showed that, farm size, seed/setts, and fertilizer were significant inputs utilized for production among farmers in the study area. The mean technical efficiency of yam farmers was 0.94. Similarly, the results of the maximum likelihood estimate of the cost function indicated that cost of seed/setts, fertilizer, agrochemicals and labour were the significant cost associated with yam production in the study area. The mean allocative and economic efficiencies were 0.95 and 0.89 respectively. The study therefore concluded that majority of yam farmers in Yorro Local Government Area of Taraba state, Nigeria operated at the maximum efficiency level indicating that there was little efficiency gap hence there is still scope for improvement of yam production in the study area. The study recommends investments by individuals, private organizations and government in yam production so that farmers could increase output through more intensive and efficient use of available resources given the current state of technology.

Analysis of Technical Efficiency on Orange Fleshed Sweet Potatoes Production Among the Smallholder Farmers in Migori County Kenya

Sweet potatoes (<i>Ipomea batatas </i>L.), particularly the orange fleshed variety, have become increasingly popular due to their ability to thrive in various environmental conditions with minimal inputs. Orange fleshed sweet potatoes (OFSPs) show potential for productivity, yet smallholder farmers in Kenya still struggle to maximize their yields. The factors influencing OFSP production efficiency among these farmers in Western Kenya have not been thoroughly examined. This study evaluated the technical efficiency of OFSP production among smallholder farmers in Migori County. Using a descriptive research design, a sample of 225 OFSP farmers was randomly selected by a cluster sampling technique. Data was collected through a structured questionnaire on inputs and selected socio-economic factors. The data was analyzed using the frontier stochastic model in STATA. Smallholder farmers estimated mean technical efficiency was 77.82% significant variables were; size of the land, availability of planting vines, access to hired labour, gender of the household decision maker, farming experience, household size, land ownership status, participation in training programs and extension services, and proximity to markets, indicating a need to improve OFSP production by 22.18%. These findings suggest that to reduce inefficiencies among smallholder OFSP farmers, targeted training programs are needed to enhance farmers' agronomic knowledge specific to OFSP production. Further, policy interventions should prioritize the provision of extension services to support and improve the performance of OFSP smallholder farmers.

Voluntary sustainability standards and technical efficiency of Honduran smallholder coffee producers

Sustainable coffee production promises to improve production techniques and enhance the socioeconomic conditions of smallholder farmers. Using primary survey data from 659 coffee producers in Honduras, this study assesses the impact of voluntary sustainability standards (VSS) on the technical efficiency of smallholder coffee production. The article uses the Stochastic Production Frontier Analysis model to analyze and compare the technical efficiency (TE) of certified and non-certified coffee producers. To provide reliable comparability between groups, the dataset was balanced using Covariate Balancing Propensity Score (CBPS). The results show that the mean technical efficiency was 52.86% for pooled certified farmers and 55.56% for non-certified smallholder coffee producers. Specifically, the technical efficiency of 4C farmers was 51.58%, 53.82% for the Fairtrade group, 60.56% for RA farmers, and 60.15% for the UTZ group, indicating substantial inefficiencies in the coffee production of the different certified groups. Results from Tobit’s model for the determinants of TE indicated that variables such as the age of the household head, access to credit, and training attendance are among the main factors that significantly drive the technical efficiency of certified and non-certified farmers. Based on the findings, enhancing education opportunities, improving infrastructure for better market access and farm management, and expanding credit access are recommended to improve efficiency in the study area. Honduran smallholder coffee producers have considerable potential to increase output with existing technology by improving their technical efficiency. Therefore, stakeholders’ efforts should focus on enhancing efficiency levels and capitalizing on potential gains for both certified and non-certified farmers, to ultimately improve the farmers’ livelihoods.

Resource allocation efficiency in 68 county-level traditional Chinese medicine hospitals in China: a data envelopment analysis.

Analysing and evaluating how efficiently health resources are allocated to county-level Traditional Chinese Medicine (TCM) hospitals in Zhejiang Province, this study aims to provide empirical evidence for improving operational efficiency and optimising resource allocation in these hospitals. The study employed a three-stage Data Envelopment Analysis (DEA) model to assess efficiency, using data from 68 county-level TCM hospitals. Four input and five output variables related to TCM services were selected for the analysis. The first-stage DEA results indicated that in 2022, the technical efficiency (TE) of TCM hospitals in Zhejiang Province was 0.788, the pure technical efficiency (PTE) was 0.876 and the scale efficiency (SE) was 0.903. The classification of hospitals into four groups based on the bed size showed statistically significant differences in returns to scale (p<0.001). The Stochastic Frontier Analysis regression results were significant at the 1% level across four regressions, showing that environmental variables such as per capita GDP, population density and the number of hospitals impacted efficiency. In the third stage DEA, after adjusting the input variables, the TE, PTE and SE improved to 0.809, 0.833 and 0.917, respectively. The adjusted mean TE rankings by region were West (0.860) > East (0.844) > South (0.805) > North (0.796) > Central (0.731). There is an imbalance between the inputs and outputs of county-level TCM hospitals. Each region must consider factors such as the local economy, population and medical service levels, along with the specific development characteristics of hospitals, to reasonably determine the scale of county-level TCM hospital construction. Emphasis should be placed on improving hospital management and technical capabilities, coordinating regional development, promoting the rational allocation and efficient use of TCM resources and enhancing the efficiency of resource allocation in county-level TCM hospitals.

FARO-44 RICE PRODUCTION EFFICIENCY OF FADAMA III ADDITIONAL FINANCE II BENEFICIARIES IN TARABA STATE,

The study analysed the faro-44 rice production efficiency of fadama III additional finance II beneficiaries in Taraba State, Nigeria. A Multi-stage sampling procedure was used to select 250 respondents. Data were analyzed using descriptive and inferential statistics. The findings of the study revealed that The result of maximum likelihood estimates of the stochastic frontier production Function of dry season faro-44 rice farmers reveal that farm size (P&lt;0.01), fertilizer (P&lt;0.05), quantity of seed (kg) (P&lt;0.01), herbicide (liter) (P&lt;0.05), were positive and significant increasing output of the farmers. Similarly, the age (P&lt;0.01) level of education (P&lt;0.01), farming experience (P&lt;0.05) and household size (P&lt;0.05 were the socio-economic characteristics influencing the increase in technical efficiency of the farmers. Furthermore, the technical efficiency of the farmers is glaringly below 1, an indication that the farmers are operating below their production efficiency frontier. A reasonable proportion (41.20%) of the respondents were within 0.60-0.69 technical efficiency index range with highest value of 0.91 for the most efficient farmers and minimum of 0.50 for the least efficient or worst farmer. Consequently, farmers obtained mean technical efficiency of 0.76 which will improve their technical efficiency by 24%. The result further revealed that, the farmers attained an estimated mean allocative efficiency of 0.88. It was concluded that most of the farmers were unable to obtain technical efficiency level above 76% and farmers were 88% allocative efficient. The study recommended that farmers level of technical efficiency can be increased by 27% by building farmers’ capacity through training, workshops and seminars on postharvest loss management, processing techniques, farm record keeping in order to avoid wastages and sustain efficiency.

Technical Efficiency of Artisanal Fishing Households in Malawi

This study assesses the technical efficiency of artisanal fishing households in Malawi using the stochastic production frontier model, particularly, the Cobb-Douglas model. The specific objectives of the study were two-fold: to measure the productivity of the artisanal fishers in Malawi and to find the determinants of their technical efficiency. The study used data obtained from the Malawi’s Fifth Integrated Household Survey (IHS-5), and results indicate that artisanal fishers are highly productive as the Cobb-Douglas stochastic frontier production function exhibited increasing returns to scale. The study also found that the artisanal fishers are technically efficient as their mean technical efficiency score is about 99 percent, implying that on average, a typical artisanal fisher operates only 1 percent below the maximum potential output. Furthermore, the study findings indicate that amount of money a household pays as rent for a fishing gear, the number of fishers hired, and the number of fishing gears operated by a household are positive determinants of technical efficiency among artisanal fishers; whereas the payment to hired fishers on credit is a negative determinant of technical efficiency among the artisanal fishing households in Malawi. Hence, two-fold policy implications emanate from the study as follows: Firstly, in order to promote technical efficiency of the artisanal fishing households in Malawi, policymakers need to intensify efforts aimed at encouraging spawning of fish by, strictly, prohibiting fishing in the fish spawning months. Secondly, policymakers need to encourage the artisanal fishers to subsidize the productive inputs in the artisanal fisheries sub-sector such as fishing gears and boats, and improve fishers access to credit.

Equity and efficiency of health resource allocation in the Chengdu-Chongqing Economic Circle of China.

This study aimed to evaluate the fairness and efficiency of health resource allocation (HRAE) in Chengdu-Chongqing Economic Circle after the new healthcare reform. This study also aimed to identify existing problems, providing empirical evidence for the government to formulate regional health plans scientifically and reasonably. The fairness of health resource allocation was analyzed using the Gini coefficient, Theil index, and agglomeration degree from population and geographical area perspectives. The three-stage data envelopment analysis and the Malmquist productivity index were used to analyze HRAE from static and dynamic perspectives. The Gini coefficient for population allocation in Chengdu-Chongqing Economic Circle was 0.066-0.283, and the Gini coefficient for geographical area allocation was 0.297-0.469. The contribution rate within a region was greater than that between regions, and health resources were mainly concentrated in economically developed core areas. The overall fairness of Chengdu Economic Circle was relatively better than that of Chongqing Economic Circle. Moreover, the adjusted mean technical efficiency was 0.806, indicating room for HRAE improvement in Chengdu-Chongqing Economic Circle. Stochastic Frontier Analysis found that different environmental variables have varying degrees of impact on HRAE. The adjusted mean total factor productivity change (Tfpch) was 1.027, indicating an overall upward trend in HRAE since the new healthcare reform. However, scale efficiency change (Sech) (0.997) limited the improvement of Tfpch. The fairness of health resources allocated by population was better than that allocated by geographical area. The unfairness of health resources mainly stemmed from intra-regional differences, with considerable health resources concentrated in core areas. Over the past 13 years, HRAE has improved but exhibited spatial heterogeneity and Sech-hindered productivity improvement. The study recommends strengthening regional cooperation and sharing to promote the integrated and high-quality development of the health and well-being in Chengdu-Chongqing Economic Circle.

Factors Affecting Technical Efficiency of Coffee Producers: The Case Dale Woreda, Sidama Region, Ethiopia

Coffee is the major source of income for smallholder farmers and is a leading export crop for Ethiopia. Even though a great proportion of coffee production comes from smallholder farmers with farm sizes below two hectares, productivity in these farms remained very low. To identify the causes of low productivity this study identified the technical efficiency level of smallholder coffee farmers and the factors that influence technical efficiency in coffee production in Dale Woreda, Sidama Region, Ethiopia using the stochastic frontier approach. In addition, this study attempts to determine whether the agricultural and some of the socio-economic characteristics of farmers can influence the efficiency of their technical efficiency coffee production. By exploiting the information that was gathered in a survey of 150 farmers selected randomly from three kebeles using stratified random sampling in the woreda, these farmers' technical efficiency was estimated using a trans-long-type stochastic frontier model and two-limit Tobit model. The mean technical efficiency of the study area is 65.43%. The results suggest that, factors like the land cover, labor in hours, compost used as well as their cross product and the interaction effects of labor with sufficient compost used, labor with proper capital-labor force, and minimum cost for agricultural equipment and composite with proper capital significant determinants of coffee technical efficiency in the area. Furthermore, variables like educational status, age of the coffee tree, membership of cooperative associations, size of livestock holding, presence of additional off-farm incomes, and age of household head are significant predictors of the technical efficiency of farmers in the study area. Thus, by improving their education, improving the frequency of extension service, increasing livestock holdings, improving membership in cooperative associations, and replacing the aged coffee tree, someone can improve his/her technical efficiency directly and coffee production indirectly.

Socio-economic evaluation and technical efficiency of soybean (Glycine max L. Merrill) production in North-West Nigeria: A parametric approach

This aim of study examined socioeconomic evaluation and technical efficiency (TE) of soybean (Glycine max) production with a parametric approach in North West, Nigeria. The multistage sampling method was used to select 160 soybean farmers. Primary data were used. Data were analyzed using descriptive statistics and the stochastic production efficiency frontier model (SPEFM). The result shows that the mean age of a soybean farmer was 46 years. Soybean production was profitable with an estimated Gross Margin and Net Farm Income of 899,237.80 and 824, 468.22 Naira respectively. The Gross Margin Ratio and Rate of Return on Investment was calculated at 0.583 and 1.15 respectively. The significant socio-economic factors that increase the TE of soybean production include household size, age, years of experience, level of education, members of cooperatives, and number of extension contacts. The mean TE scores of soybean farmers was 53.77%, leaving a gap of 46.23% for improvement. This study recommends that credit with single-digit interest rates should be made available to soybean farmers.

How efficient are Indian banks? An application of stochastic frontier analysis

Purpose This study aims to investigate the efficiency of Indian commercial banks from 2002 to 2018 using the stochastic frontier analysis. Design/methodology/approach This study uses the parametric approach of the stochastic frontier to examine the technical efficiency of banks acknowledging exogenous shocks, omitted variables and measurement errors, filling a gap in the existing financial literature. The scope of this study was constrained to 71 scheduled commercial banks to make it manageable and productive with 1,036 observations. Findings The results show that the mean technical efficiency of new private banks remained constant at 92.7% during the study period because of technology diffusion in banking systems. The technical efficiency of the nationalized, old private and foreign banks has enhanced over the period because of the efficient utilization of various innovative information technology services such as mobile banking, cheque truncation system, magnetic ink character recognition. However, the foreign banks are still laggards with a mean technical efficiency of 81.7%. The empirical findings suggest that new private sector banks depict higher efficiency than nationalized, old private and foreign banks. Research limitations/implications This study’s sample represents all categories of banks (public, private and foreign) including the banks that merged or consolidated during the period of study. To achieve the desired results, the authors incorporate the consolidated and merged banks in their data set. Further, the authors excluded all scheduled small finance banks and scheduled payment banks from their analysis, as these entities commenced operations post-2015. Additionally, the authors also excluded regional rural banks because of their distinct mandate aimed at servicing the rural populace and agricultural sector. Originality/value This study contributes to the literature on the performance of conventional banks in general and emerging markets, in particular, using the most recent data and covering a relatively long period using the stochastic frontier approach.

Data Envelopment Analysis (DEA) to Estimate Technical and Scale Efficiencies of Smallholder Pineapple Farmers in Ghana

This study focuses on evaluating the technical and scale efficiencies of smallholder pineapple farmers in Ghana’s Central Region. We surveyed 320 participants selected using random sampling and applied an input-oriented Data Envelopment Analysis (DEA) method to gauge their technical, pure, and scale efficiencies. Our findings indicate that the mean technical efficiency among these farmers is 0.505, with individual scores ranging from 0.079 to 1.000. Notably, 90.82% of the farmers are operating below maximum efficiency levels, suggesting a potential input reduction of up to 49.5% while maintaining current production levels. Relaxing the assumption of constant returns under Variable Returns to Scale (VRS) conditions reveals a notable improvement in technical efficiency, with 10.82% more farmers achieving optimal efficiency levels. Furthermore, our analysis highlights scale inefficiencies, with 67.26% of farmers operating below optimal scale levels. By increasing production by 22.8%, these scale-inefficient farmers could enhance their efficiency and productivity within existing technological frameworks. These findings underscore the importance of collaborative efforts among policymakers, practitioners, and stakeholders within the agricultural value chain to implement interventions such as improving access to technology and innovation for smallholder farmers and making necessary investments in farmer education and training programs to enhance both technical and scale efficiencies in Ghana’s pineapple sector. Such initiatives can drive sustainable growth, improve farmers’ livelihoods, and bolster the sector’s overall competitiveness.

Food security drive and adoption of improved rice varieties on the production efficiencies of upland and lowland rice farmers in north-central Nigeria

To attain the food security target of the country, fostering farmers’ adoption of improved rice varieties will go a long way toward closing the lingering production deficit gap in Nigeria, and meeting up with the ever-increasing demand for rice consumption in the country. This study investigated the effect of the adoption of improved rice varieties on the production efficiencies of rice farmers in the north-central Nigeria. A multistage sampling technique was uses to select 387 rice farmers, which includes 201 upland and 186 lowland rice farmers in the study area. A stochastic frontier analytical model (SFA) was employed to estimate production efficiencies (technical, economic and allocative) for the rice farmers. Further, a multivariate regression analysis (MVA) was applied to determine the effect of adoption on the efficiency levels of the rice farmers. The exploratory analysis of the data revealed that the rice varieties available for adoption by the rice farmers in the study area is 10, but both upland and lowland rice farmers adopted more of two rice varieties (Faro-46 and Faro-52). From the SFA results, most of the rice farmers have mean technical, economic and allocative efficiencies of 0.7, 0.54 and 0.76 respectively. The SFA estimates also indicated that seed, herbicide, fertilizer, farm size and capital assets significantly affect the efficiency of upland rice farmers, while the efficiency of their lowland counterparts is influenced by seed, farm size capital and herbicide, amongst others. The MVA estimates also showed that the adoption rate of improved rice varieties, years of formal education, and farm-level factors made significant contributions to the efficiency levels of the rice farmers. Importantly, the levels of adoption of all rice varieties by farmers indeed influenced their technical and economic efficiency, while having no impact on their allocative efficiency. The study recommended that the government, research institutes and developmental agencies should promote easy access to improved rice varieties by farmers, as this can further drive sustained adoption. This can evidently help to achieve desirable yield and enhance the efficiency level of the rice farmers and boost food availability and achieve the zero-hunger target in the study area and Nigeria at large.

Sources of Technical Inefficiency for Smallholder Field Pea Producers in Ethiopia

This study intended to measure the technical efficiency and sources of inefficiency for field pea producers in Ethiopia. The study used primary data collected from 207 smallholder farmers. A multi-stage sampling technique was followed to select sample households. A stochastic frontier was the model used, and a single-step estimation approach was followed. The result indicated that the mean technical efficiency is 49.23 %, and the average productivity of the crop is 0.96 tons/hectare. This indicates that the technical efficiency could be increased by 51.77 % through proper utilization of production variables, i.e. agrochemicals, oxen power, plot size, and seed rate. The inefficiency model result also confirmed that the technical inefficiency of field pea production was negatively affected by access to off-farm income, access to credit services, extension contacts, adoption of new technologies, access to training, and participation in contract farming of the crop. Therefore, this study recommends agricultural policies favoring vocational training to farmers on the new agricultural technology packages, availing access to off-farm incomes, facilitating credit services to farmers, and establishing legal frameworks that encourage contract farming.

To analyze the technical and allocative efficiency of drill paddy cultivation in Bhandara district

The present study on paddy was undertaken in Bhandara district of Vidarbha region. The district was selected purposively. Three tehsils were selected. Out of the seven tehsil, Sakoli, Lakhandur and Pauni tehsil was selected for the study based on drill paddy cultivars. Three villages were selected purposively from each tahsil and from each village 10 farmers were selected overall 90 farmers were selected. The study revealed that how different cost components affect the profitability of production paddy crop and also proposes that at how much level of efficiency, the farmer is producing the paddy crop and how much level of efficiency is yet to be obtained. The maximum livelihood estimates of the stochastic production function revealed that fertilizer showed a negative and significant effect on paddy production. The co-efficient of the frontier profit function revealed that machine hours, seed and fertilizer shows a negative and significant impact on paddy farmer profitability. The mean technical, economic and allocative efficiency of paddy cultivation was found to be 97.49 per cent, 87.97 per cent and 89.86 per cent indicated that there is still scope for paddy farmers to increase the economical and allocative efficiency by operating at a full efficient level by proper utilization and allocation of existing resources and technology.

Determinants of Production and Technical Efficiency of Tilapia Farming in the Philippines

The Philippines' economy depends heavily on the profitability of the tilapia aquaculture industry. The country's tilapia aquaculture still has a significant amount of untapped biophysical growth potential; therefore, more rapid expansion is needed to keep up with the increasing demand for fish. The study examined the variables affecting the technical efficiency of tilapia production in the Philippines. The face-to-face interview method was used to survey randomly selected tilapia farms. The efficiency of the Philippines' tilapia aquaculture was estimated in this study. Overall, the findings of the technical efficiency analysis indicated that all fish producers within the examined regions were functioning below the production frontier. Therefore, to boost productivity and efficiency, it is necessary to thoroughly study the origins of inefficiencies in socioeconomic variables and farm features. The mean technical efficiency, as determined by the maximum likelihood estimation of the stochastic production frontier, is 0.44. The model's outcome showed that area and stocking rate significantly impact tilapia output in a few selected Philippine locales. It was discovered that factors such as the utilization of aeration, adoption of advanced culture method, and access to government support are significant predictors of technical efficiency in tilapia farming. The policy implication is that there are still more opportunities to raise the current level of technical efficiency of tilapia production in the Philippines.

BANK TECHNICAL EFFICIENCY OF COUNTRY GROUPS: A META-REGRESSION ANALYSIS

Purpose- This study endeavors to examine studies using Data Envelopment Analysis in calculating the banking sector efficiency across country groups and to determine the factors affecting their technical efficiency through meta-regression analysis. Methodology- As of November 22, 2023, relevant works were systematically reviewed using Web of Science, Scopus, and Google Scholar. The literature review employed a comprehensive search encompassing all files with the keywords such as ‘‘technical efficiency (All Field) AND bank (All Field)’’. The research process adhered to the PRISMA guidelines. This study reviewed all studies published between 1932 and 2023 identifying 64599 studies in the initial scan by the author. The author independently scrutinized the titles, abstracts, keywords, text, and references of all manuscripts to mitigate selection bias and reveal whether eligibility criteria were met. Exclusions from the scope encompassed duplicate downloads, papers, books and book chapters, together with studies having low quality scores, no full-text versions, and those that are irrelevant to the subject. Findings- The results of meta-regression analysis revealed that the data collection year of the studies and the income groups of the countries did not have an impact on the mean technical efficiency. The number of banks, number of observations, publication year, and number of countries were statistically significant on the mean technical efficiency estimate. Conclusion- The study further standardized variables and methodological assumptions used in bank sector efficiency studies within country groups through meta-regression analysis. Empirical findings in the literature were combined. This study enhances accessibility to the existing body of knowledge for researchers in the field

Can performance-based financing improve efficiency of health centers in Ethiopia? A Malmquist Productivity Index analysis

IntroductionThe Ethiopian government has introduced several healthcare financing reforms intending to improve efficiency. Piloting implementation of performance-based financing is one of these actions. The purpose of this research is to assess the efficiency of healthcare facilities that have implemented performance-based financing compared to those that have not.MethodsEfficiency was measured using a nonparametric data envelopment analysis and the Malmquist Productivity Index technique. Total factor productivity change, technical change, and technological change are compared across eight sampled healthcare facilities that are implementing performance-based financing and eight that are not in Ethiopia.ResultsHealth facilities implementing performance-based financing have a mean technical efficiency score of 64%, allowing for a potential 36% reduction in inputs without affecting outputs. Their scale efficiency is 88%, indicating a potential 12% increase in total outputs without expanding facilities. In contrast, facilities not implementing performance-based financing have a mean technical efficiency score of 62%, with a potential for 38% input reduction without affecting outputs. Their scale efficiency is 87%, suggesting a potential 13% increase in total outputs without scaling up facilities. Among the 16 healthcare facilities observed, seven experienced a decline in the mean total productivity, while one remained stagnant. The remaining eight facilities witnessed an increase in productivity. The healthcare facilities implementing performance-based financing showed a 1.3% decrease in mean total productivity during the observed period. Among them, five showed an increase and three showed a decrease in the total factor of productivity. The mean total factor of productivity of all healthcare facilities not implementing performance-based financing remained stagnant over the three-year period (2019–2021), with four showing an increase and four showing a decrease in total productivity.ConclusionsThe study concludes that implementing performance-based financing did not improve productivity levels among healthcare facilities over three years. In fact, productivity decreased among the facilities implementing performance-based financing, while those not implementing it remained stagnant. This shows health facilities that implement performance-based financing tend to utilize more resources for similar outputs, contradicting the anticipated efficiency improvement.