Production Technical Efficiency Research Articles

Panel VAR study on the effects of technical efficiency, market competition, and firm value on environmental performance

This study provides evidence on the interactions among four interconnected firm performance profiles: environmental performance (environmental score and pollutant emissions), production technical efficiency, firm market power, and firm market value. We employ two sophisticated econometric methodologies to a sample of almost 2500 observations covering about 430 US-listed manufacturing firms from 2002 to 2020. First, stochastic frontier analysis allows us to estimate time-varying technical efficiency in firm production; next, we apply an atheoretical model, the panel vector autoregression model , to identify the dynamic and causal relationships between the corporate profiles’ performance. Our results show that inefficiency is the weak point of the environmental score for the listed US manufacturing firms. Moreover, monopolistic rents enact a detrimental externality on firms’ ecological awareness. Finally, market dominance appears be a Pareto inefficiency condition. • This study provides evidence on the interactions among four interconnected firm performance profiles. • Inefficiency is the weak point of the environmental score for the listed U.S. manufacturing firms. • Monopolistic rents enact a detrimental externality on firms’ ecological awareness. • Market dominance appears be a Pareto inefficiency condition.

Daya Saing Bawang Putih di Indonesia

Demand for garlic in Indonesia tends to increase, but only a little (< 5 percent) of it was met by national production. This study aims to analyze the competitiveness of Indonesian garlic and identify its determinants. Data used on garlic farming was obtained from the Agricultural Census 2013-Central Bureau of Statistics (BPS), consisting of 121 sample farmers in West Nusa Tenggara province and 98 farmers in Central Java province. The Policy Analysis Matrix (PAM) method was used to measure comparative and competitive advantages which were grouped according to the technical efficiency of production. Efficiency is estimated by the Data Envelopment Analysis (DEA) method. The results showed that garlic has a comparative and competitive advantage in only 55 percent of the total sample. The comparative and competitive advantages of garlic were significantly determined by the technical efficiency of production. Further analysis showed that the competitiveness of Indonesian garlic was sensitive to changes in productivity and output prices. Productivity is the most decisive factor in the competitiveness of Indonesian garlic. Government policies related to input prices and output prices caused farmers to pay lower input prices and accepted output prices higher than their social prices. From this study can be concluded that in general Indonesian garlic was not competitive being produced domestically. Garlic can be produced domestically as an import substitution if it is produced with high productivity and efficiency. It is recommended to improve the technical efficiency of production by utilizing the potential land and technology production optimally.

EFFECT OF SUPPLEMENTARY IRRIGATION SYSTEM ON WHEAT PRODUCTION EFFICIENCY USING A STOCHASTIC FRONTIER ANALYSIS

This study was aimed to director wheat production's technical efficiency grown under two irrigation systems(fixed and pivot sprinkler irrigation systems)using random border analysis.Samples were collected randomly from267farmers from Salah Al-Din Governorate/Iraq.The samples were divided into two groups;187farmers used a pivot sprinkler irrigation system with three categories of possession(80,60and120dunums),while the other group used a fixed sprinkler irrigation system with four categories of possession(40,30,20and10dunums).Transcendent production function was used to study the effect of production factors on wheat yield. The results indicated that the mechanization work and the amount of added irrigation water increased by 1% while the wheat yield increased by0.08and0.15%,respectively.The pivot sprinkler irrigation system's technical efficiency averaged0.86,while the fixed sprinkler irrigation system's efficiency was0.84.The technical efficiency and experience increased with the farmers' experience with supplementary irrigation, the cultivated area and age. On the other hand, technical efficiency and experience decreased with the family's size and wheat cultivating experience. Furthermore, farmers who owned mechanization were more efficient than the lessors. The sprinklers' highest productivity was in the pivot sprinkler irrigation system at120dunums and was 108,930 kg. The highest productivity per water unit was0.86in the fixed sprinkler irrigation system of10 and 40 dunums. The efficiency of water use was 86% when the cultivated area was120dunums with the pivot sprinkler irrigation system and87% at40 dunums with the fixed sprinkler irrigation system.

Determining Technical and Resource-Use Efficiency in Rice Production in East Java

This study aimed to determine the technical and resource-use efficiency of East Java. The secondary data were used from the Paddy Cultivation Household Survey ST2013 handled by BPS-Statistics Indonesia. The data was cross-sectional and were derived from ST2013 in 2014. The stochastic frontier analysis analyzed the factors that drive rice output and quantified rice production's technical efficiency. In contrast, the marginal value product-marginal factor cost (MVP-MFC) approach was used to quantify resource-use efficiency in rice production. The SFA indicated that these factors positively affect rice output except for seed, fertilizer, labor, and land utilization. However, other factors were considered apart from the land size, such as exaggerated land and labor advantage in production and bad seed and fertilizer utilization. Technical efficiency varies considerably among rice farmers, ranging from 1 percent to 100 percent, with an average of 89 percent. Their technical inefficiency was influenced by their group membership, irrigation, credit, education level, and farmer age - external farm insect pests. The government and the private sector are involved in the programs through farmer groups. Keywords: agricultural production, allocative efficiency, resource-use efficiency, parametric frontier, ST2013, technical efficiency

DETERMINANTS OF TECHNICAL EFFICIENCY IN CROP PRODUCTION AMONG SOME COMMERCIAL CROP FARMERS IN NIGER STATE, NIGERIA

The study was designed to find out the determinants of technical efficiency in production of some commercial crops in Niger State. Primary data was used for the study. Crop production was found to be inelastic with a decreasing return to scale for the farmers. The distribution and level of technical efficiencies for the farmers examined was found to be 74.2%. There was a significant difference in the technical efficiency level obtained. The determinants of technical efficiency observed in the study were age, household size, education level, farming experience and credit access for the farmers. The result showed that there was a statistically significant relationship between the socio-economic factor and technical efficiency in crop production. It further indicated that 3.9% of the total variation in aggregate food crop production by these farmers was due to technical inefficiency. The study concluded that crop farmers are yet to achieve their best, as shown by their low technical efficiency (TE) value and low output levels, thus, calling for critical examination of technical efficiency, as a means of examining the role of higher efficiency level on agricultural output, particularly in the study area.

Patterns of production and sustainability of cattle ranching in the state of Pará - Brazilian Amazon

The aim of this study was to analyze the production patterns present in rural properties producing cattle in the micro-regions that make up the state of Pará. Exploratory Factor Analysis (EFA) was applied to identify the patterns, and these data are used to evaluate correlation between the heterogeneity of rural properties and the environmental impact on the identified patterns. The theoretical contribution is based on discussions on global impacts of food production and environmental sustainability and the impacts of livestock production systems in Brazil and the Amazon. Survey data were taken from the 2017 Agricultural Census, available for the 144 municipalities in the state, and pooled into 22 micro-regions. Three patterns of rural properties were identified: the first related to conservation management practices and called transition management; the second highlights aspects associated with information technology and communication (ICT) and productivity called technical productive efficiency; the third indicates the importance of social organization and access to information called social participation. With these patterns, it was possible to develop the Traditional Performance Indicator (TPI), in which the micro-regions of São Félix do Xingu, Itaituba and Conceição do Araguaia were those with the highest values of this indicator, water protection practices are present in the properties, however, in precarious conditions, and conservation practices are rarely used. The correlation between heterogeneity, measured by the size of pasture area in each microregion, and the TPI is positive, strong and significant. In this transition context, public policies are essential to provide access to infrastructure, credit and good animal health and biotechnology practices

Evaluation of technical efficiency of some rain-fed cereal and legume crops production in Syria: does crisis matter?

BackgroundSyria is a developing country whose economy is still dominated by the agricultural sector. The agricultural sector is considered as the main source of food in Syria and a major source of employment and income generation. Food and agricultural policies in Syria focus heavily on achieving food security and improving its four pillars (availability, accessibility, stability and utilization). As a result, until 2011, a good progress has been attained in food availability. The food security situation deteriorated in Syria after 2011 crisis, with the number of people facing acute food insecurity rising from 7.9 million in 2020 to a staggering 12.4 million in 2021. This is the result of many shocks that the agricultural sector has been exposed to, such as the relative decrease in cultivated areas, high costs of production, reduced input availability including labour, prevailing violence, related damage to farm equipment, and abandoned land. In view of the changes that the agricultural sector has been exposed to in Syria as a result of the crisis, the study concerns measuring the technical efficiency of production of some rain-fed cereal and legume crops in Syria and comparing it in the pre and post-crisis period, which has started in 2011. A non-parametric (DEA) method is applied for measuring technical efficiency during the time period 2003–2010 (pre-crisis) and the period 2011–2018 (post-crisis) with censored regression (the tobit model) to investigate the determinants of technical efficiency. A t test is used to test the null hypothesis (H0) that there was no difference in technical efficiency of the production of studied crops before and after the crisis in Syria and the alternative hypothesis (Ha) that there was a significant difference in technical efficiency.ResultsThe findings show low level of technical efficiency in the post-crisis period. The results verified differences in the technical efficiency of pre- and post-crisis period. The use of censored regression with dummy for crisis has shown negative and significant effect on technical efficiency of each of the durum wheat and lentil crops, while it had no significant effect on the other studied crops.ConclusionsThis study can provide important information to the government to pursue a new policy for recovery and improving the agricultural production and productivity. There is an urgent need to adopt new policies that focus on providing production requirements in the form of low-interest loans, sustainable use of resources, providing support for the marketing process, and focusing on the export markets of some study crops (chickpeas and lentils). Government should improve agricultural extension services for farmers and encouraging them to adopt new technologies.

Impact of Rototiller Fertilizer Applicators on Technical Efficiency of Coconut Plantations in North Western Province, Sri Lanka

As a major plantation crop, coconut contributes directly and immensely to the economy of Sri Lanka. With the aim of enhancing the efficiency of the industry, rototillers have been introduced recently as fertilizer applicators. Hence, the purpose of this study was to assess the impact of such application on technical efficiency and productivity of the coconut plantations. Data were collected randomly from 60 growers: 30 rototiller users and 30 non-users. Stochastic frontier production function was used to measure the technical efficiency of production using the maximum likelihood method. The productivity of the estates was used as the output, and inputs were education level, off farm income, farming experience, water availability, availability of irrigation system, cropping system, land extent, labour days, fertilizer cost and other costs. The highest technical efficiency was recorded by increasing land extent. The variables such as land area, labour days, fertilizer cost and other costs were also significant on technical efficiency. The mean efficiency of rototiller users was 71 % and non-users was 62 % owing to a less labour requirement for fertilizer incorporation. Three percent of the rototiller users was smallholders with less than three hectares of land, and their efficiency ranged between 30 -50 %. The results of the study will help coconut growers and policy makers to promote rototillers in coconut cultivations.

What Affects the Production Technology of Labor-Intensive Agricultural Industries in the Context of Labor Aging? An Empirical Study Based on the Garlic Production in Lanling

While the aging of agricultural labor force and its impact on agricultural production have been attracting extensive attention, little is known about the relationship between aging of agricultural labor force and technical efficiency in the garlic production. Based on the survey data of garlic growers in Lanling County, Shandong Province, the Data envelopment analysis (DEA) model is used to measure the production technical efficiency of garlic growers in 84 villages in Lanling County, Shandong Province, with the aging of the labor force. The distribution characteristics and changing trends of garlic production technology efficiency are analyzed in terms of family characteristics and garlic planting characteristics, and regression analysis is performed on the differences of the results. The study found the following: (1) Garlic growers in Lanling County, Shandong Province, accounted for a high proportion of laborers over 60 years old, and their physical health status was weaker than that of young laborers, which reduced the technical efficiency of garlic planting and production. (2) The number of garlic varieties grown by garlic growers and the number of garlic planted in acres have a significant negative impact on the technical efficiency of garlic planting by farmers. (3) There is a significant positive correlation between the annual household income of farmers and the production technology efficiency of garlic growers; when the number of garlic training is not more than three times, it has a positive impact on the production technology efficiency of garlic planting by farmers, and more than three times are related to garlic production technology. The efficiency is negatively correlated.

Smallholder farmers’ climate change adaptation practices contribute to crop production efficiency in southern Ethiopia

AbstractClimate‐smart practices that have added benefits of improving agricultural productivity are an imperative for improving smallholder farming. However, there are few insights into how smallholder climate‐smart adaptation practices influence their technical (in)efficiency. Thus, the objective of this study was to evaluate the impact of smallholders’ climate‐smart adaptation practices on their crop production technical efficiency (TE) in the Lemo district of southern Ethiopia. We used focus group discussion, experts’ consultations and household survey to collect data from 600 smallholder crop producers across six rural kebeles. We computed smallholder farmers’ climate change adaptation indices based on experts' consultations and estimated the TE of the smallholder farmers using Stochastic Frontier Analysis. The smallholder farmers in the Lemo district have adopted climate‐smart agricultural practices such as terracing, crop diversification, improved soil amendment practices, varying planting or harvesting schedules, and crop rotation. The smallholder farm households practicing more adaptation strategies on a larger scale were more technically efficient than their counterparts with their TE averaging 11.31, 8.62, and 6.71% for major crops, wheat (Triticum aestivum L.), and teff [Eragrostis tef) (Zucc.) Trotter] production, respectively. Our model also revealed that adaptation to climate change has a positive and significant contribution to the technical efficiency of major crops, wheat, and teff production. Other key determinants of TE are farming experience, education, access to extension services, livestock holdings, and farm household income. Overall, our study suggests a policy shift to promote smallholder farmers adaptation to climate change using climate‐smart practices for an effective response to climate change impact while enhancing TE.

DIFFERENT SUBSTRATES AND IRRIGATION DEPTHS ON PRODUCTION COMPONENTS OF THE ‘BIQUINHO’ PEPPER*

The present work had the primary objective of evaluating the production response and water use efficiency of the Biquinho pepper for different irrigation depths and substrates. The experiment was conducted in a greenhouse located at the Alegrete campus of the Federal University of Pampa. We performed an entirely randomized 2 x 5 two-factor experimental design (two substrate compositions and five irrigation depths). The substrate composition treatments used were a commercial substrate and the mixture of commercial substrate + carbonized rice hull. The treatments for the water replacement depths were 25, 50, 75, 100, and 125% of the water holding capacity for each substrate. At the end of the cycle, we assessed the following components: crop yield, production, water use efficiency, and fruit diameter, length, average weight, and number. The yield and water use efficiency components were more significant when using the commercial substrate + carbonized rice hull composition. The maximum technical production efficiency was obtained for an irrigation depth of 101.7% of the water holding capacity. On the other hand, the water use efficiency was higher when using a depth of 69.17%.

Prospek Swasembada Beras di Provinsi Kalimantan Timur

Rice self-sufficiency in Indonesia remains a national priority program since rice is a staple food of the majority of the population. This national program has become an economic development agenda in almost all local governments at the provincial and district levels. East Kalimantan Province is one of the provinces that set the rice self-sufficiency on the local medium-term planning (RPJMD) 2013-2018. This research generally aimed at analyzing the prospect of rice self-sufficiency in East Kalimantan Province. Specifically, the research aimed to measure the potential for developing rice in East Kalimantan Province and to analyze the production technical efficiency of rice farming. The data used in this research were national and provincial agriculture land area and 337 units of rice farm from Agricultural Census 2013. Using LQ (Location Quotient) method indicated that economically rice was not a basic commodity of East Kalimantan Province. At the provincial level, there were only two out of four districts that had rice as a basic commodity. Stochastic production frontier analysis showed that the technical efficiency of rice production was 0.64, which indicated that rice production in the province was 36 per cent below its production frontier. Planting patterns and land status significantly improved technical efficiency. From this research can be concluded that the self-sufficiency program in East Kalimantan Province was not supported by regional potential of rice production nor by technically efficient rice production at the farm level.

Adoption of climate-smart agricultural practices and their influence on the technical efficiency of maize production under extreme weather events

Malawi experiences frequent and intense extreme weather events that affect rain-fed household maize production. Thus, households have adopted various climate-smart agriculture (CSA) practices to cushion maize production from the adverse effects of extreme weather events, particularly drought episodes. This study examines the drivers of CSA practices' adoption and their influence on the technical efficiency of maize production among drought-affected households. Based on a conditional logit model, the study finds drought episodes substantively enhancing the adoption of organic manure by 76% and soil and water conservation by 29%. The Cobb-Douglas Stochastic Frontier Analysis reveals that households are 63% technically efficient, implying that they can increase current maize production by 37%. A two-stage Tobit model further shows that concurrent adopting organic manure and inorganic fertilizers in the same farm significantly improves maize production's technical efficiency by 18% and is more noticeable among drought-affected households. This study, therefore, advocates for simultaneous adoption of organic and inorganic fertilizers to enhance the effect of CSA practices on the technical efficiency of maize production under intensifying drought episodes. Besides, the study recommends championing gender-targeting extension services to augment the benefits of CSA practices among female farmers. Ultimately, the study results contribute to the existing literature on improving agricultural productivity under varying weather conditions.

Technical efficiency of cocoa farming in Gorontalo Province

Cocoa is an export oriented strategic plantation commodity that contributes to foreign exchange in Indonesia. It is mostly planted in Sulawesi Island, therefore, serves as a source of income for farmers. The purpose of this study was to analyze the efficiency of cocoa farming in Pohuwato Regency, Gorontalo. A total of 55 respondents were selected by simple random sampling. Furthermore, the Cobb Douglas stochastic frontier production function was used to analyze technical production efficiency and factors affecting it. Cocoa farming can be categorized as profitable, as the farmer reached average profit IDR 6,312,679/ha/year. However, in general cocoa farmers have not yet technically efficient because their technical efficiency value was only 0.52. The cocoa production efficiency was positively and significantly affected by land area, fertilizer, pesticides and labor. The increase in farmer age causes a positive and significant rise in inefficiency. Conversely, education and the number of family members have a negative effect, although not significant. Therefore, it requires to increase cocoa farming efficiency by increasing farmers’ access to production inputs such as fertilizers and pesticides, and improving the management of cocoa cultivation.

PENENTUAN TINGKAT EFISIENSI ALOKATIF DAN EFISIENSI TEKNIS PADA USAHATANI JAGUNG MANIS ( Zea mays saccharata L. ) DI KECAMATAN KUPANG TIMUR

Research about the determining of allocative and technical efficiency level of sweet corn farming in East Kupang Sub District aims to find out the effect of the use of production factors toward sweet corn production; to analyze the level of allocative efficiency of its use; and to analyze the level of production technical efficiency of sweet corn. The research location was chosen by purposive sampling with the consideration that Oesao village and Pukdale are villages where produce sweet corn in East Kupang Sub District. The sample of research respondents was taken by simple random sampling with 79 respondents consisting of 35 farmers from Oesao village and 44 farmers from Pukdale village. The collect of data had been carried out as long as February to March 2020. The reseach results showed that the factors of land, seed, and urea production significantly affected the production of sweet corn, while the factors of NPK, pesticides and labor production had no significant effect. The level of efficiency can be reached through allocate production inputs precisely. In this case, by reducing the use of land and urea fertilizer, on the other hand, by adding the use of seeds. Also, the farmer production level technically is not efficient yet with the average of actual production level is 10,408 grains or around 1,487 kg, while the average frontier production level is 28,146.64 grains or around 4,021 kg. There are 39 farmers who their technical efficiency in low level category, than, 28 farmers in moderate level category, and as many as 12 farmers have reached a level of technical efficiency.

Technical Efficiency of Irish Potato (Solanum tuberosum L.) Production in Molo Sub County, Kenya

This study focused on measuring farm level technical efficiency among smallholder Irish potato farmers in Molo Sub County and its determinants. Descriptive research design was applied. Cross-sectional data was collected through multistage sampling from smallholder Irish potato farmers located in Molo Sub County from April to June 2019. A Stochastic frontier approach assuming a Cobb-Douglas production function was adopted to analyze the level of technical efficiency and explain variations in this technical efficiency across farmers and estimation was done by applying the maximum likelihood method. Mean technical efficiency was 70.7%. The statistically significant variables with respect to the farm inputs were land (0.262), seed (0.629), fertilizer (-0.299) and fungicide (0.131) variables respectively. However, fertilizer variable had negative effects on Irish potato production. Education (-0.061), gender (-0.262), access to extension services (-0.078) and farmer group (-0.217) variables were significant and influenced technical inefficiency negatively.Increase in smallholder farmers’ literacy level, accessibility to extension services and farmer groups may improve Irish potato production technical efficiency. However, gender contribution towards Irish potato production technical efficiency needs a deeper understanding.

Nonparametric economic analysis of the level of technical efficiency of cattle meat production in the Krasnodar Krai in 2013-2018

Calculations of estimates of the technical efficiency of production activities of agricultural organizations of the Krasnodar Krai that produce live weight gains of cattle in 2018 were performed. For this purpose, a nonparametric method is used, which compares the actual and potentially possible maximum production volumes calculated using the linear programming method for each specific commodity producer in a representative sample of enterprises and forming a broken boundary production function. The size of the potential for growth in the production of meat cattle products based on the existing livestock in the region was determined and priority areas for its implementation was identified. It was established that the main factors hindering the development of meat cattle breeding in the Krasnodar Krai are low potential of biological productivity of the livestock breeds used, use of unbalanced feed rations that lead to a large overspend of certain types of feed, and low labor productivity.

ВЛИЯНИЕ ПРОИЗВОДСТВЕННОГО РИСКА И ТЕХНИЧЕСКОЙ ЭФФЕКТИВНОСТИ НА ПРОИЗВОДСТВО ПРОДУКЦИИ РАСТЕНИЕВОДСТВА В САРАТОВСКОЙ ОБЛАСТИ

ВЛИЯНИЕ ПРОИЗВОДСТВЕННОГО РИСКА И ТЕХНИЧЕСКОЙ ЭФФЕКТИВНОСТИ НА ПРОИЗВОДСТВО ПРОДУКЦИИ РАСТЕНИЕВОДСТВА В САРАТОВСКОЙ ОБЛАСТИ

Empirical Analysis of Railway Efficiency in Pakistan

This paper estimates change in Pakistan Railways (PR) efficiency over time. It is important to see the performance in a dynamic context. Based on the fundamental CCR-BCC (Charnes, Cooper and Rhodes, 1978; Banker, Charnes and Cooper, 1984) model, we use an extended Data Envelopment Analysis (DEA) model developed to deal with time series method for the period 1966-2017. The PR became financially inefficient from 1985 onwards. Fewer and redundant inputs were used for service delivery which caused product inefficiency. Rising expenditures increased cost of operations which became the source of allocative inefficiency. Both resulted in train closures and shrinking business. Our results show pure technical efficiency of production at 69 per cent, indicating the output waste of 31 per cent. The empirical findings suggest that the pure technical efficiency of production outweighs the pure technical efficiency of allocation. The main policy implication is that steady investment under an autonomous and professional management is required for a turn around. Keywords: Efficiency, Data Envelopment Analysis, Pakistan Railways, Transportation Policy

TECHNICAL EFFICIENCY IN ARABLE CROP PRODUCTION UNDER GORONYO IRRIGATION PROJECT OF SOKOTO STATE, NIGERIA

The study examined the technical efficiency in arable crop production under Goronyo irrigation project of Sokoto State, Nigeria. Multi-stage sampling technique was used to sample 246 farmers and the limited cost-route approach was used with the aid of questionnaire. Stochastic frontier production function (SFPF) model was used in estimating farm level technical efficiency. The study also revealed the average technical efficiency index of rice, maize, cowpea and tomato farms to be 0.87, 0.79, 0.45 and 0.76, respectively and that technical inefficiency effect existed among the farmers. Estimates of technical efficiency of farmers revealed that average sampled farms operate 13%, 21%, 55% and 24% below the frontier output levels for rice, maize, cowpea and tomato farms under consideration. Farmers are fairly efficient technically in deriving maximum output from rice, maize and tomato farm and less technically efficient in the production of cowpea. Extension contact was one of the major factor that influences technical efficiency in the area, therefore, sustained farmers extension contact should be encourage by increasing frequency of contact where new techniques will be disseminated to the farmers to improve the use of available resource.