Level Of Technical Efficiency Research Articles

Technical efficiency of factors affecting soybean farming in Tanjab Timur Regency

This research was carried out with the aim of: Knowing the general description of soybean farming in Tanjab Timur Regency, Analyzing the level of technical efficiency of soybean farming in Tanjab Timur Regency, Analyzing the level of technical inefficiency of soybean farming in Tanjab Timur Regency. The analytical tool used is Stochastic Frontier production function analysis with Cobb- Douglas and calculating the level of efficiency and inefficiency. This research was conducted in Tanjab Timur Regency. The sampling technique was the census method with a sample of 120 farmers. The data used is secondary and primary data. The research results showed that: The condition of the land in the research area is tidal land with an average production of 1,039, The use of production inputs in the research area is technically efficient, reaching 0.767. Socio-economic factors such as age and education variables have no real effect and increase inefficiency while experience variables, number of family members and extension have no real effect, but increase technical efficiency or reduce inefficiency, Simultaneously or partially age, education, experience, number of family members and extension has no real effect on production.

The effect of COVID-19 pandemic on the efficiency of training and research hospitals in Turkey

The Coronavirus disease 2019 (COVID-19), which emerged in December 2019, caused an increase in the demand for healthcare services globally. Hospitals’ operational and financial performances are thought to have been negatively affected by COVID-19 because they had to postpone providing non-urgent healthcare services to prevent infection. This study aimed to evaluate how the COVID-19 pandemic has affected the efficiency of training and research hospitals in Turkey. The study population comprised 51 training and research hospitals. The Malmquist Total Factor Productivity index was used to examine the changes in the efficiency of the training and research hospitals between 2017–2018, 2018–2019, 2019–2020, and 2020–2021. In addition, a repeated-measures ANOVA test was used to evaluate whether a significant difference existed in the efficiency levels of the hospitals in the pre-COVID-19 pandemic periods (2017–2018 and 2018–2019) and during them (2019–2020 and 2020–2021). No significant difference was found between hospitals' technical and scale efficiency levels before and during the pandemic, but the change in total factor productivity was significant (F = 34.18; p < 0.001). Our research findings provide clues about how hospitals' behaviours changed during the pandemic compared to before the pandemic. It was observed that efficiency decreases in hospitals at the onset of the pandemic disappeared with the adaptation process to the new normal. Technical efficiency decreased in two periods (2017–2018 and 2020–2021) when total factor productivity increased. Reverse changes in total factor productivity and technical efficiency indicate that technological change drives total factor productivity. This study identified differences in hospital efficiency during both ordinary and extraordinary periods. It would benefit managers and policymakers to recognise these differences and focus on managerial skills that ensure technical efficiency in extraordinary circumstances to mitigate possible efficiency losses.

Factors Affecting Technical Efficiency in Potato Farming: A Data Envelopment Analysis (DEA) Study in East Java, Indonesia

Potato farming has a crucial role in promoting the agricultural sector of East Java, Indonesia, with significant consequences for regional economic growth and acting as the main source of income for farmers. However, the primary challenge that potato farmers face involves improving production efficiency in order to strengthen the sustainability and competitiveness of the agricultural industry. This study aims to analyze the technical efficiency of potato farming in East Java and identify the factors affecting this efficiency. The study focuses on the areas of Sumberberantas and Wonokerso in East Java, which serve as key centers for growing potatoes. The study includes a group of 82 farmers as respondents, with 40 from Sumberberantas and 42 from Wonokerso. Data Envelopment Analysis (DEA) is a method that systematically examines levels of technical efficiency. It is complimented by Tobit Regression Analysis, which assists in identifying the relevant elements affecting efficiency. The findings indicate that the average technical efficiency score is 0.840, suggesting that farmers have the potential to increase their efficiency by up to 16%. Gender and land area for potato farming are identified as crucial factors affecting technical efficiency, while age, education, and farming experience have no effect.

TECHNICAL EFFICIENCY OF VEGETABLE PRODUCTION AMONG WETLAND VEGETABLE FARMERS IN SOUTHWEST NIGERIA

This study employed Cobb-Douglas Stochastic Frontier Production function to measure technical efficiency and its determinants among dry season vegetable farmers in selected wetland catchments in Southwest Nigeria. A multistage random sampling procedure was adopted to select 450 wetlands vegetable farmers across Oyo, Ogun and Lagos States and data were collected with the aid of structured questionnaire in 2020. Technical efficiency (TE) estimates indicated that wetlands vegetable farmers operated below the production frontier with the mean technical efficiency value of 0.74. Increased farm size, family labour, quantity of seed planted, and quantity of agrochemical significantly (p&lt;0.01) improved the farmers’ technical efficiency level. The study found that extension contact, access to credit, farming experience, and membership of an association negatively and significantly related to technical inefficiency at 1 and 5%. Weighted average price and household size were significantly and positively related to technical inefficiency. It was recommended that attention should be given to improvement in the visitation by extension agent, the provision of improved seeds and affordable financial support. Key words: Efficiency, Stochastic frontier, Vegetable, Wetland,

Estimating the levels of technical and economic efficiency of yellow corn crop farms in Kirkuk Governorate - Hawija district (a model) For the production season 2022 AD

Estimating the levels of technical and economic efficiency of yellow corn crop farms in Kirkuk Governorate - Hawija district (a model) For the production season 2022 AD

Efficiency of public investment in education in Peru, 2016-2022: A comparative analysis by region

The study analyzes the level of technical efficiency of public investment in Education at the primary and secondary level in Peru, 2016 to 2022. Data envelopment analysis – DEA was used and for the association between the provision of resources and educational quality. the panel data fixed effects model. The results indicate that there are relative differences in efficiency between the regions, registering an average score of 49% for the primary level and 38% for the secondary level, with the most efficient being Moquegua, Tacna, Arequipa and Ica, and the least efficient being Loreto, Huánuco, Ucayali, and San Martín. From the input-output association, classroom size, infrastructure in good condition and public investment have a direct relationship, while students per teacher and per computer, the relationship is inverse with respect to educational achievement in communication and mathematics at the primary and secondary level. This suggests that inefficient regions should increase educational attainment at the primary and secondary levels by an average of 51% and 62%, respectively, while maintaining the same level of spending. Therefore, to improve their efficiency within the framework of public policies, they can adopt the management implemented by regions such as Moquegua and Tacna.

Analyzing the financial viability and technical efficiency of aquaculture farming in Delta State, Nigeria: Lessons from cluster operations

This study delved into the comprehensive analysis of aquaculture farming in Delta State, specifically focusing on the financial viability and technical efficiency of cluster operations. As aquaculture plays a crucial in meeting global seafood demands, understanding the dynamics at the regional level become imperative. The study employed a multifaceted approach to assess the financial viability of aquaculture farming, technical efficiency of aquaculture production. By adopting a cluster based perspective, the research aims to unravel the intricacies of collaborative farming operations, identifying synergies that contribute to enhanced financial outcome. Insights garnered from this financial evaluation can provide stakeholders with strategic guidance for sustainable economic practices within the aquaculture sector. The research draws on a diverse set of data source, including financial records, production metrics, focus group discussions and questionnaire distributions. Statistical tools and econometric models are applied to quantify the relationships between various variables, providing a clear understanding of the factors influencing technical efficiency and financial Findings from this study showed that the price of labour, price of fish feeds and price of medicine had a significant effect on efficiency of aqua farming with a coefficient of 0.5468**,-0.7862**, -0.8896** respectively. The result of the technical efficiency , (25.0%) falls within the 0.71 - 0.8 range, indicating a high level of technical efficiency of aqua farmers. This is followed by those in the 0.31 - 0.4 and 0.51 - 0.6 ranges, each with 11.2% of farmers. In contrast. The result of the BCR showed a significant variation in profitability highlights of aqua farming operations in the study area are more financially rewarding, with a net return on investment (ROI) of 0.58. However, the technical efficiencies and productivities of aqua farmers in clusters were significantly high regardless of how biases were corrected, implying that participation in cluster group is positively related to increases in aqua farmers output.

Firm performance and markets: survival analysis of medium and large manufacturing enterprises in Indonesia

AbstractThis study identifies the effect of firm performance, especially efficiency, on firm survival. This study applies efficiency calculations using a translog model based on both time-invariant and time-varying production functions and the Ackerberg–Caves–Frazer (ACF) model to overcome the endogeneity problem in the estimation of the production function. The data used are firm-level data, which are medium and large manufacturing company censuses with an observation period from 1995 to 2015. This study used two estimation techniques: the Cox proportional hazard model and Poisson regression. I estimate the Cox regression with firm-level data, whereas the Poisson regression is estimated with aggregate data for 2-digit ISIC. Estimates at the aggregate 2-digit ISIC level are intended to not only see the effect of efficiency on companies that survive but also on companies that enter and exit. Firm-level evidence shows that a company’s efficiency reduces the hazard ratio or increases its survival time. Moreover, consistent with firm-level results, the aggregate-level estimation shows that efficiency increases the chances of survival and entry of companies into Indonesia and reduces the rate of company exit from the Indonesian market. This shows that a company's level of technical efficiency makes an important contribution to the survival of manufacturing companies in Indonesia.

Level of technical efficiency and associated factors among health centers in East Gojjam Zone, Northwest Ethiopia: an application of the data envelopment analysis

BackgroundBesides the scarcity of resources, inefficient utilization of available health service resources has been the bottleneck to deliver quality health services in Ethiopia. However, Information regarding the efficiency of health service providers is limited in the country. Health service managers and policy makers must be well informed about the efficiency of health service providers and ways of using limited resources efficiently to make evidence-based decisions. This study aimed to assess the level of technical efficiency and associated factors among health centers in East Gojjam Zone, Northwest Ethiopia.MethodsA facility-based cross-sectional study was conducted among 27 randomly selected health centers in East Gojjam zone, Northwest Ethiopia, from October 30, 2022, to April 30, 2023. Using an interviewer-administered questionnaire and document review checklist, health centers’ data was collected and entered to Epi-Data version 4.6. The data was exported to Microsoft office excel and Stata version 14 for analysis. A two-stage output-oriented data envelopment analysis with a variable return to scale assumption was employed to determine the level of technical efficiencies. Finally, the tobit regression model was applied to identify the associated factors at 5% level of significance.ResultsIn this study, 59.3% of the health centers were technically efficient. The mean technical efficiency score of the health centers was 0.899 ± 0.156. Inefficient health centers could provide more 22, 433 outpatient visits, 1,351 family planning visits, 155 referral services, 206 skilled deliveries and 385 fully vaccinations of children if they were technically efficient as their peer health centers for the same year. From the tobit regression, the catchment population and number of administrative staffs were statistically significant determinants of the technical efficiency of health centers.ConclusionsThe mean technical efficiency of the health centers in East Gojjam zone, Northwest Ethiopia was high. However, nearly half of the health centers were technically inefficient, which indicates the exitance of a space for further improvements in the productivity of these health centers. Employing excess number administrative staffs (above the optimal level) should be discouraged and selecting appropriate sites where the health centers to be constructed (to have large catchment population coverage) could improve the productivity of health centers.

Technical efficiency in the Malaysian electric and electronic manufacturing industry: A stochastic frontier analysis approach

This study measured the level of technical efficiency (TE) that exerted a significant impact on the Malaysian electric and electronic manufacturing industry, which consists of 13 sub-industries, from 2010 to 2015. Unbalanced panel data from 1880 firms was obtained from the Department of Statistics Malaysia. We used stochastic frontier (SFA) analysis with the transcendental logarithmic approach to estimate the empirical analysis parametric. The maximum likelihood estimated regression of the SFA parameters revealed a high total average TE of 0.944%. Both the manufacturing sub-industries for communications equipment (MSIC 263) and irradiation, electromedical, and electrotherapeutic equipment (MSIC 266) demonstrated the highest average TE value and consistency (0.989%). The consumer electronics manufacturing sub-industry (MSIC 264) yielded a notably lower TE level (0.846%). Changes in TE for all industries were monitored via standard deviation analysis. The low standard deviation (SD) for MSIC 263, 271, and 275 indicated continuous progress and demands for these industries, while the higher SD for MSIC 264, 266, 272, and 273 pointed out major changes that happened within the period. The findings demonstrated that studies on the TE levels indicate that the E&amp;E manufacturing industry has highly expended and continuous efforts to update technologies and human capital innovations. Therefore, the practical implication is to achieve Sustainable Development Goal 9 for sustainable industrialization and fostering innovation by 2030.

Measuring the Queen Bee Phenomenon in technically efficient firms: implications from Southeast Asian manufacturers

This study examines the “Queen Bee Phenomenon,” that is, Southeast Asian manufacturers having female CEOs and owners. In addition, the buffering effect of female CEOs and owners on manufacturers seeking higher technical efficiencies is also examined in this research. This study uses the fractional regression and two-limit Tobit regression models to examine a combined set of cross-sectional data from surveys conducted by the World Bank, consisting of 3471 manufacturers in Southeast Asia, including those in Thailand, the Philippines, Indonesia, Malaysia, and Vietnam. Our results find that the “Queen Bee Phenomenon” does not exist in Southeast Asian manufacturing enterprises. Furthermore, manufacturers with higher technical efficiency levels are likely to hire fewer female workers; nevertheless, if female CEOs and owners run these technically efficient firms, hiring more female workers can be noticed. This research demonstrates that globalization through FDI and exports may promote female labor force participation among Southeast Asian enterprises and those seeking greater technical efficiencies.

EFISIENSI TEKNIS PRODUKSI TANAMAN JAHE DI PROVINSI JAWA TIMUR: PENDEKATAN STOCHASTIC FRONTIER ANALYSIS

&lt;em&gt;Ginger is a spice and medicinal plant that much needed by industry and society. However, ginger production decreased and even experienced a trade balance deficit. One solution that can be done is through intensification or efficiency improvement, especially in the largest ginger-producing province in Indonesia, namely East Java Province. The data used is raw data of Cost Structure of Horticultural Cultivation Household Survey (SOUH) 2018. The results of the analysis using Stochastic Frontier Analysis (SFA) show that four factors of production, namely land area, number of workers, amount of seeds used, and amount of fertilizer used, can increase ginger production significantly with a fairly high level of technical efficiency. However, technical inefficiencies are still found which cause ginger production to not be maximized. There are seven from eight variables that have a significant effect, namely farmer age, farmer education level, farmer group participation, pest control, receiving farm assistance, use of credit, and land ownership status. Meanwhile, the variable of farmer gender has no significant effect.&lt;/em&gt;

Impact of climate change on farm-level technical efficiency in Punjab, Pakistan

This paper assessed the impact of climate change on farm-level productivity and technical efficiency in the Punjab province of Pakistan. The stochastic production frontier model was employed at the farm household level for 3 yr of panel data (n = 537) covering 3 cropping systems (rice-wheat, cotton-wheat, and mixed wheat) from 3 different agro-ecologies and 17 of 36 districts of Punjab. Though the use of inputs was found to have a positive impact on farm production, results highlight the strong negative impacts of the increase in the long-run temperature normals and fluctuating precipitation across the crop production seasons. Weather shocks and socioeconomic factors of the farm family significantly contributed to the farm’s technical efficiency. A mean technical efficiency score of 0.82 suggests that with the use of climate-smart technologies and improving farm management involving better use of production inputs, there is potential for improvements in farm-level technical efficiency. The declining trend in the mean technical efficiency due to weather shocks necessitates the adoption of climate-smart agricultural practices. However, this requires that farmers should be supported with targeted coping options for expected weather shocks differentiated by crop production zones. A well-coordinated climate and extension service can support the adoption of climate-smart agriculture for sustainable crop production.

EXAMINING THE IMPACT OF FINANCIAL CAPITAL ACCESS ON TECHNICAL EFFICIENCY: EMPIRICAL INSIGHTS FROM CARROT FARMERS IN INDONESIA

Objective: This study investigates the interplay between financial capital access and technical efficiency in small-scale carrot farming in Indonesia, focusing on the regions of Malang and Probolinggo in East Java. Methods: Employing a multistage random sampling method, data was collected from 100 farmers, and stochastic frontier analysis (SFA) was employed to measure technical efficiency. Results: The results highlight the positive and significant impact of financial capital access on farmers' technical efficiency. Farmers with enhanced access to financial resources, including credit and loans, demonstrated higher levels of technical efficiency. Additionally, the study identifies the positive influence of larger cultivated land on technical efficiency, allowing farmers greater flexibility and opportunities for adopting modern agricultural technologies. Conversely, greater distances to cultivation lands were found to negatively impact technical efficiency due to increased transaction costs and difficulties in accessing information and markets. Implication: These findings underscore the critical role of financial capital in shaping the success of small-scale carrot farming, emphasizing its implications for sustainable agricultural practices. The study's insights contribute to the formulation of targeted policies and interventions aimed at improving financial inclusion and reducing geographical barriers to enhance overall agricultural productivity and sustainability in small-scale farming communities.

Technical Efficiency of Handloom-based Micro-enterprises in Assam, India: A Stochastic Frontier Analysis

Improving technical efficiency is one of the most effective ways to boost output in any manufacturing process. The efficiency level of enterprises can be improved by identifying their sources of inefficiency. The present article examines the technical efficiency and tries to identify the factors causing technical inefficiency in handloom-based micro-enterprises in Assam. The article used primary data and collected from 312 micro-level handloom enterprises spread across four districts of Assam. The stochastic frontier production with an inefficiency effects model is used for the purpose of analysis. Labour, capital and material inputs are found to be significant and labour is the most effective factor for increasing of output level. The mean technical efficiency of overall enterprises is 0.67 and a wide variation in the level of technical efficiency among the sample handloom enterprises is observed. Inefficiency model shows that a high yarn capital ratio, lower product diversity, entrepreneurs with training, a higher number of employees and adoption of promotional practices tend to reduce the technical inefficiency of the handloom enterprise significantly.

Technical Efficiency Analysis Of Home Industry Kamang Crackers In Kenagarian Kamang Hilir Kamang Magek District, Agam Regency West Sumatra Province

Technical efficiency is the ability of an industry to use minimum total input to produce maximum output. This research aims to 1) Analyze the level of technical efficiency in the Kamang cracker home industry in Kamang Hilir Kenagarian, and 2) Analyze what factors influencing the level of technical efficiency in the Kamang cracker home industry in Kamang Hilir Kenagarian. This research was carried out deliberately in Kenagarian Kamang Hilir, Kamang Magek District, Agam Regency. Respondents in this study using the Slovin formula, totaling 51 Kamang cracker home industry entrepreneurs using a simple random sampling technique. Using primary and secondary data, while the data analysis used is qualitative descriptive analysis and the Cobb-Douglass production function method which is converted into logarithmic form, then data analysis uses Stochastic Frontier. The analysis results showed that the average level of technical efficiency was 0.5792, proving that the hypothesis in this research was proven correct. Can be concluded that the Kamang cracker home industry is technically efficient and the factors that influence technical efficiency are raw materials, salt, hours people work, age, number of family members while green onions, pertalite and gas fuel, education, business experience are not significant in the Kamang cracker home industry

Technical efficiency in several levels of adoption of garlic farming standard operating procedures in production centre in Indonesia

The relevance of this study lies in overcome obstacles to garlic development in Indonesia, such as low productivity and limited use of technology, which can hinder self-sufficiency and import-reducing programs. The purpose of this study was to identify the technical efficiency, the determinants of technical inefficiency, and the level of technical efficiency at various levels of adoption of the standard operating procedures of garlic farming in production centres in Indonesia. The cross-sectional data was gathered through interviews with 227 farmers chosen using a simple random selection technique. The Cobb-Douglass production function and the stochastic frontier analysis were used to determine the factors influencing garlic production, the technical efficiency level, and the determinants of technical inefficiency. The Maximum Likelihood Estimation was used to analyse the data. The level of technical efficiency at various levels of standard operating procedures adoption was measured using descriptive statistical analysis. Farm size, seeds, urea and NPK fertiliser, herbicides, yellow sticky traps, family labour, mulch, and farmers’ participation in garlic development programs significantly affected garlic production. The technical efficiency varied within 0.37-0.99, with a mean of 0.71. Farmers’ practices and standard operating procedure adoption significantly reduced technical inefficiency. Generally, the level of standard operating procedure adoption is moderate. In the high standard operating procedure adoption group, the mean technical efficiency is 0.77, while in the moderate level group, it is 0.68. The findings of this study can be used as a model for other garlic-importing countries to enhance production and strengthen food security

The Production Efficiency of Small Medium Enterprises in West Sumatera Province

The purpose of this study is to determine the effect of capital, labor, and resources on the technical efficiency production of SMEs in West Sumatra and to see whether the SMEs production in West Sumatra is technically efficient. The type of data used in this study is panel data for 19 regencies/cities in West Sumatra from 2015 to 2021 using the Stochastic Frontier Analysis (SFA) approach. This research examines production efficiency technically at SMEs in the West Sumatra region. The result of this study indicates that the production factors of capital and resources have a positive and significant effect on the production of SMEs in West Sumatra, while labor has a negative and insignificant effect on the production of SMEs in West Sumatra. The result of the technical efficiency calculation shows that the mean level of technical efficiency of the SMEs production in West Sumatra from 2015 to 2021 is 0.543 or 54.3 percent, which means that production in SMEs is technically inefficient. This research implies that the government can compile regulations and road maps that can increase the productivity of SMEs in the West Sumatra region, and for SMEs to be able to engage more broadly with sustainable programs for production efficiency such as attending training and business guidance, using the rural business credit program from the government, as well as establishing cooperation partners for raw materials with other SMEs.

Evaluation of technical efficiency traditional agriculture among smallholder maize farmers in East Java

The low productivity of maize in traditional agriculture has worsened the demand and supply of maize production. This gap indicates the important role of the small farmer sector in producing maize. However, this also indicates that there will be serious consequences for food security in Indonesia if maize farmers experience crop failure. Because of these conditions, this article will analyze the technical efficiency of traditional maize farming using a randomly selected sample of 70 farmers. This research uses a stochastic frontier model of technical efficiency analysis through a linearized Cobb-Douglas production function to determine the input production elasticity coefficient, technical efficiency, and the determining factors of technical efficiency. This study found that maize production responded positively to increasing the amount of seed, urea fertilizer, and NPK fertilizer. Efficiency analysis shows that traditional farming activities for smallholder maize farmers are classified as technically efficient with a Technical Efficiency value of 0.821, which means farmers can combine inputs to produce optimal output. The results of this research empirically prove that small-scale agriculture in maize farming activities has a better level of technical efficiency. The results of this research also highlight the role of farmer groups in improving technical efficiency through better agricultural extension services and other access.

Determinants of technical and allocative efficiencies in catfish (Clarias gariepinus) Production in South-East, Nigeria

The study analysed technical and allocative efficiencies and their determinants in Southeast zone of Nigeria with the objectives of examining and identifying the socioeconomic characteristics of the catfish farmers in the area, the technical and allocative efficiency levels of the farmers, the determinants of technical and allocative efficiencies in catfish production, and the effect of pond systems on technical and allocative efficiencies. Multi stage and simple random sampling procedures were adopted in the selection of 384 respondents for the study. The results showed that majority of the farmers were males, educated up to secondary school level, with the mean fish production experience of 9.6 years, and high use of family labour. It was also found that average stocking rate was 2,500 per production phase with average duration of production of 6months. The result on the efficiency distribution showed that the mean technical and allocative efficiency levels of the farmers were 0.73 and 0.87 respectively. The results further pointed out that the socio-economic characteristics included in the study significantly contributed to technical and allocative efficiencies of catfish farmers in the area with experience standing out as the most important. Lastly, it was found that farmers who farmed in earthen ponds allocated their resources more efficiently.