Value Of Technical Efficiency Research Articles

Digitalization and Operational Efficiency in Fisheries: Evidence from China

Fisheries contribute significantly to the global economy while playing a crucial role in environmental conservation, food security, and socio-economic development. Analyzing the operational efficiency of the fisheries industry not only enhances its economic and social benefits but strengthens the sector’s capacity for sustainable growth. This study initially evaluates the operational efficiency of Chinese fishery-listed companies using the DEA-BCC model and Malmquist index, both statically and dynamically, from 2012 to 2022. It then investigates the impact of digital transformation on the operational efficiency of these companies using the Tobit regression model. The findings reveal that the mean values of comprehensive, technical, and scale efficiency for Chinese fishery-listed firms are below 1, with scale efficiency exhibiting particularly low mean values under static conditions. Additionally, during the observation period, these companies’ average total factor productivity decreased by 0.1% annually compared to the base period. From a dynamic perspective, the decline in total factor productivity can primarily be attributed to reduced technical efficiency resulting from decreased scale efficiency. Ultimately, it can be reasonably concluded that the operational efficiency of listed fishing firms can be significantly enhanced by implementing digital transformation. This underscores the potential of digitalization as a critical factor in advancing the fisheries sector, facilitating modernization, and enabling intelligent upgrading across the industry.

Analysis of the relationship among technical efficiency, competitive strategy, and export performance in the cocoa agroindustry in Indonesia

The goals of the current study are to analyze the technical efficiency of the Decision Making Unit (DMU) of the cocoa agroindustry and the relationship among technical efficiency, export performance, and competitive strategy in the cocoa agroindustry in Indonesia. Respondents in this study are production and marketing managers at 42 active DMUs. The results show that the average DMU technical efficiency value is 0.963 and 0.985 based on the models of Constant Returns to Scale (CRS) and Variable Returns to Scale (VRS), with the distribution of the full technical efficiency category of 80.95%, the high category of 16.67%, the medium category of 2.38%, and the low category of 0%. This study finds a model for increasing the export performance of the cocoa agroindustry, in which the technical efficiency variable has a significant positive effect on the export performance variable with competitive strategy variables as an intervening variable.

Economic Efficiency Of Pineapple Farming Using The Stochastic Frontier Approach

Central Aceh Regency is the province's largest pineapple producer. However, pineapple farming is facing the problem of low pineapple productivity and input use efficiency. The research aims to analyze the factors that influence the level of technical efficiency and the allocative and economic efficiency of pineapple farming in Pegasing District, Central Aceh Regency. The sampling process employs the stratified random sampling method. The total sample consisted of 62 respondents. The stochastic frontier is used. The research revealed that the production factor of land area, with a variable coefficient value of 0.0312, seeds with a variable coefficient value of seeds of 1.0152, and pesticides with a coefficient value of 5.6239, significantly influenced pineapple farming production in Pegasing District. Conversely, the labor factor, with a coefficient value of 0.0408, and fertilizer, with a coefficient value of 0.1198, had an insignificant effect. The use of inputs in pineapple farming has reached technical efficiency values, but there are ​still opportunities to increase optimally. However, neither allocatively nor economically have we achieved efficiency. The technical efficiency value for pineapple farmers was 0.80, the allocative efficiency value reached 0.427, and the economic efficiency was 0.351. Farmers, as actors in farming activities, need to pay attention to the use of the right combination of inputs; economic efficiency will be obtained from the use of production factors so that pineapple farmers' income will increase.

ANALYSIS OF PRODUCTION EFFICIENCY IN HYBRID CORN SEED FARMING IN RANDUBLATUNG DISTRICT BLORA REGENCY

Efficiency is important to know to see the success of a farming business. Farming activities in producing a product cannot be separated from the use of production factors. Using production factors appropriately and efficiently will provide benefits for farmers, namely maximum productivity. This research aims to analyze the factors that influence hybrid corn seed production, as well as analyzing technical, allocative and economic efficiency. The research location is Randublatung District, Blora Regency, Central Java. The research method used was a case study of seed breeder farmers in Randublatung District using saturated sampling with a total sample of 53 farmers. The analytical method used is quantitative descriptive analysis which includes influence analysis, technical, allocative and economic efficiency analysis using Stochastic Frontier. The results of the research show that there is a simultaneous influence between land variables, seeds, urea fertilizer, phonska fertilizer, pesticides and labor on hybrid corn production results. The variables of land area, seeds and urea fertilizer partially have a significant effect on production results, while the variables of phonska fertilizer, pesticides and labor partially have no effect on production results. The technical efficiency results of hybrid corn farming in Randublatung District are quite technically efficient with an average technical efficiency value of 0.878. The results of the analysis of allocative and economic efficiency show that it is not yet efficient with average values of 0.337 and 0.293 respectively. Opportunities to increase the efficiency of hybrid corn seed farming in Randublatung District include farmers better allocating inputs according to their needs so that input costs are not large, providing more intensive counseling and assistance to farmers regarding hybrid corn seed cultivation techniques, especially in the use of inputs so that they are more proportional in accordance with recommendations from relevant agencies.

Research on Financing Efficiency of Intelligent Manufacturing Enterprises in China --Empirical analysis based on DEA-Malmquist modeling

Smart manufacturing is leading the way in the development of manufacturing quality in China. Based on the DEA-Malmquist model, this paper analyses the financing efficiency of 88 listed smart manufacturing enterprises in China from 2017 to 2021.The results of DEA static analysis show that: in terms of industry types, the comprehensive technical efficiency of the light textile industry is the highest, the resource processing industry has serious internal polarisation, and the machinery and electronic manufacturing industries are mainly affected by pure technical efficiency. Malmquist dynamic analysis shows that: the average total factor productivity index of listed enterprises in intelligent manufacturing is 0.9835, of which, the change value of pure technical efficiency leads to the annual average financing efficiency. The value of efficiency change leads to an average annual decline of 1.65% in financing efficiency. Therefore, the financing efficiency of Chinese intelligent manufacturing enterprises can be improved from the dimensions of improving the bond financing support system and constructing advanced manufacturing innovation system.

Technical efficiency of teff farms in Ethiopia: Do neighborhood effects matter? A copula stochastic frontier and spatial Durbin regression

Teff is essential to most Ethiopians, but its production is hampered by farmers' characteristics and spatially related neighborhood variables. This study analyzes the neighborhood effect on the technical efficiency of teff farms in Ethiopia using panel data from the Ethiopian socioeconomic survey. The spatial Durbin regression models (SDM) and Copula stochastic frontier were used with 858 teff-growing farmers. The mean value of teff's technical efficiency was found to be 53 %, meaning that farmers had a 47 % likelihood of improving teff farm efficiency. The results from the SDM indicate a significant contribution of neighborhood effects for improving technical efficiency in teff farms. Thus, policymakers could explore implementing localized interventions and knowledge-sharing initiatives to disseminate best practices, innovative technologies, and agronomic knowledge within specific spatial clusters. By doing so, they can leverage the observed influence of neighborhood dynamics on teff farm efficiency.

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<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,

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&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.

Evaluation of the Environmental Impact and Energy Utilization Efficiency of Wastewater Treatment Plants in Tumen River Basin Based on a Life Cycle Assessment + Data Envelopment Analysis Model

The environmental impacts from energy consumption account for a high percentage of the environmental impacts of wastewater treatment plants (WWTPs) throughout their life cycle; therefore, controlling energy use in WWTPs could bring substantial benefits to the environment. In this study, according to the different percentages of electricity generation from renewable energy compared to fossil energy, the global warming, acidification, eutrophication, human toxicity, and photochemical smog, the environmental impacts of WWTP operation were considered. Furthermore, to explore a more sustainable way of operating WWTPs under the “dual-carbon” strategic decision, the environmental impacts and energy utilization efficiency of different power allocation scenarios at present and in the next 40 years were compared based on the LCA+DEA integrated model. The study revealed that in scenarios 1–5, as the proportion of renewable energy power generation gradually increased, all LCA results showed a gradual decrease, of which GWP decreased by 83.32% and human toxicity decreased by 93.34%. However, in scenarios 2–5, the contribution ratio (proportion) of gas and electricity to GWP and POCP gradually increased, reaching 77.11% and 59.44%, respectively, in scenario 5. The contribution ratio (proportion) of biomass generation to AP and EP gradually increased as well, reaching 65.22% and 68.75%, respectively, in scenario 5. Meanwhile, the combined technical efficiency in energy utilization in the five scenarios showed a decreasing trend; only scenario 1 was fully efficient, and the combined efficiency was 1. The values of combined technical efficiency in scenarios 2, 3, 4, and 5 gradually decreased and were 0.7386, 0.4771, 0.2967, and 0.1673, respectively. This study discusses whether the use of renewable energy in place of fossil energy power elicits an environmental impact in WWTPs. We explore the feasibility of achieving energy savings and emission reductions in WWTPs within the Tumen River Basin, to provide a theoretical basis for their sustainable development.

Research on the impact of China's reform to delegate power, streamline administration, and optimize government services on the technology innovation efficiency of the pharmaceutical manufacturing industry.

The government has recently implemented reforms aimed at delegating power, streamlining administration, and optimizing government services. This reform has eliminated barriers that impede the growth of various industries, thereby unleashing innovative potential. Additionally, there have been several medical policies, including changes to medical insurance and centralized volume-based procurement. China's pharmaceutical market has undergone significant changes, leading to increased demands for innovation technology efficiency in pharmaceutical manufacturing. The three-stage BCC theory was employed to assess the effectiveness of technology innovation in the industry under this reform. Calculate precise comprehensive technical efficiency values, pure technical efficiency values, and scale efficiency values for technological innovation in the pharmaceutical industry across 30 provinces from 2018 to 2020, after removing environmental factors. In 2020, Jiangsu and Shandong and nine other provinces reached the comprehensive technical efficiency frontier surface, joining Tianjin, Zhejiang, and Guangdong provinces. However, Gansu, Qinghai, Ningxia, and Xinjiang still need to catch up due to their smaller industrial scale and lack of technology. To ensure the effectiveness of reforms, it is crucial to fully consider provincial differences. Articulating national and provincial policies is necessary to allow efficient provinces to continue and allocate resources toward less efficient provinces to improve overall efficiency.

Technical Efficiency Analysis of Rice Farming in Deli Serdang Regency: A Data Envelopment Analysis (DEA) Approach

Deli Serdang Regency is the leading rice producer in North Sumatra Province. The fact is that productivity in Deli Serdang Regency has stagnated. The problem experienced by farmers is that farmers still apply monoculture cropping patterns, namely farming with only one type of crop each year, climate change, and rising input prices. This study aims to determine whether rice farming is run by farmers in Deli Serdang Regency, whether or not it is efficient, and to find out the socio-economic factors that influence technical efficiency in Deli Serdang Regency. Our study uses the Data Envelopments Analysis (DEA) method and Tobit regression to measure the technical efficiency of 400 rice farmers. Our study found that the value of technical efficiency based on the CRS, VRS, and SE assumptions was 0.576, 0.806, and 0.717. These three values mean that inefficient rice farming must reduce inputs by 42.6%, 19.4%, and 28.3%, respectively, so inefficient farming becomes efficient. Our study also found that factors that increase technical efficiency are education, access to credit, access to irrigation, distance to markets, experience, and crop diversification. Factors reducing technical efficiency are climate change and rising input prices.

Feasibility Analysis and Efficiency of Porang Farming in Gowa Regency

This study aimed to analyze the profitability and efficiency of porang farming in Majannang Village, Parigi District, Gowa Regency. The method used in this research was schontatic frontier analysis performed to 30 farmer respondents. The results showed that porang farming in Majannang Village obtained an average value of the total revenue cost ratio of 1.67 (>1), while the average value of the total benefit cost ratio was 0.67 (<1) which means the B/C ratio is unbeneficial. Therefore, porang farming in Majannang Village. The technical efficiency of porang farming was inefficient with an average technical efficiency value of 0.849 (<1). The allocative price efficiency of Porang farming was inefficient shown by the efficiency value of 2.87 (>1) and based on the value of technical efficiency at the efficient price, the value of economic efficiency was 2.43 (>1) which means it was economically inefficient.

Evaluation of the double-cycle benefits of international engineering cooperation and the Western economy - based on the SFA methodology

Abstract In the era of globalization and development, international engineering cooperation is crucial to the improvement of economic efficiency in the West. This paper selects panel data from six regions in the West from 2019-2022 and selects reasonable input-output indicators and environmental variable indicators. At the first stage of the three-stage DEA model, the static measurement of Western economic efficiency is first measured using the variable scale compensation (BCC) model. The SFA model is utilized to decompose the slack variables during the first stage and adjust the input variables without affecting environmental variables. In addition, the Malmquist index model is used to analyze the efficiency of the Western economy dynamically in order to have a more comprehensive evaluation of the double-cycle efficiency of the Western economy from the perspective of dynamic and static. The results of the study show that after removing the effects of environmental factors and random errors, the average values of technical efficiency, pure technical efficiency, and scale efficiency in the third stage of all western regions have increased by 0.0175, 0.0193, and 0.0194 compared with those in the first stage, and the annual average total factor productivity index has shown a decreasing and then increasing trend. The SFA method used in the study can effectively eliminate the influence of environmental factors and random factors and evaluate the double-cycle efficiency situation of international engineering cooperation and the Western economy more comprehensively.

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.

Analysis of technical efficiency and yield gap of potato farmers in Nepal

The productivity of potato production in Nepal is low compared to neighbouring countries because of a range of production constraints. Potatoes are an important staple crop and commodity for many communities throughout Nepal, thus imperative to improve their performance for the benefit of smallholder producers and consumers. This study aims to identify the technical efficiency and yield gap of potato farmers. Farm-level data from 300 potato farmers randomly selected from three districts of Nepal is used to estimate a stochastic frontier model. The model allows us to estimate the production elasticity coefficients of inputs, determinants of efficiency and technical efficiency of potato farmers. Results showed that among the production variables, seed rate and labour used were positive towards potato production, whereas seed source, extension contact, variety type, and irrigation used were negatively significant factors that influences the technical inefficiency. The mean technical efficiency value of potato farmers was 68%, and there was clear scope to increase potato production by 32% with the better use of available resources. The potential yield gap can be reduced if the adoption of proper agricultural practices such as the use of improved potato varieties with formal seed sources with recommended seed rates along with irrigation application. Such efforts from policymakers and other concerned stakeholders would help improve domestic production and reduce the dependency on potato imports.

Power Mechanism and Practical Path of Agricultural Insurance to Help Rural Revitalization

Abstract This paper firstly explores the power mechanism of agricultural insurance to help rural revitalization from three aspects of agriculture, farmers and rural three farmers, respectively, and constructs the rural revitalization development index system by combining the entropy power method. Then, the three-stage DEA model and the three-stage Malmquist index model are used to measure the efficiency of agricultural insurance boosting rural revitalization by combining the selected agricultural insurance boosting indicators. Finally, taking province A as an example, after descriptive statistical analysis, the method of this paper is combined with empirical analysis, and the practical path of agricultural insurance to help farmers is proposed from the three aspects of the insurance system, publicity as well and supply. The results show that after the optimization of agricultural insurance, the value of technical efficiency is distributed in [0.600, 0.738], the value of pure technical efficiency is distributed in [0.716, 0.826], and the value of scale efficiency is distributed in [0.738, 0.833] from 2010 to 2019. The mean value of the agricultural technical efficiency index in each city is 1.091, the mean value of the progress index is 1.033, and the mean value of total factor productivity is 1.029, which is an upward trending technology, and all of them have a growth rate of more than 5%. Based on this study, agricultural insurance can help improve the efficiency of rural revitalization.

Efisiensi Alokatif Usahatani Sorgum Di Desa Ondorea Barat Kabupaten Ende

Sorghum plants have the potential to be developed in Ende Regency, this commodity has been passed down from generation to generation and has become an alternative food to replace rice, but its productivity is still relatively low. Research objectives (1) to find out whether sorghum farming has achieved efficiency both technically and allocatively (2) to find out the factors that influence the technical efficiency of sorghum farming. The sample method uses simple random sampling, the sample size is 92 farmers. Data analysis, stochastic frontier production function. Sorghum farming is said to be allocatively efficient if the marginal product value (NPM) of production factors is the same as the price. Factors that influence production, seeds, land area and labor. Maximum technical efficiency value 0.92, minimum 0.70. Average technical efficiency 0.83. NPMx/Px for seeds, land area and labor < 1, the conclusion is that these three variables are not allocatively efficient. Factors that influence technical efficiency are age, farming experience, formal education dummy, farmer group membership and family size.

Efficiency trends of essential public health services and possible influencing factors since the new round health reform in China: a case study from Hainan Province.

This article aimed to evaluate the efficiency trends and influencing factors of essential public health services in Hainan Province after the healthcare reform launched in 2009 in China. The efficiency of essential public health services (EPHS) at primary health institutions was assessed using data envelopment analysis (DEA), and the efficiency change was analyzed by employing the Malmquist productivity index (MPI). We used Tobit regression to identify the influence of environmental factors on the efficiency of public health services. The bootstrap method was adopted to reduce the impact of random errors on the result. The bootstrapping bias-corrected efficiency revealed that the average values of technical efficiency, pure technical efficiency, and scale efficiency were 0.7582, 0.8439, and 0.8997, respectively, which meant that the EPHS in Hainan Province were not at the most effective state. The average bias-corrected MPI was 1.0407 between 2010 and 2011 and 1.7404 between 2011 and 2012. MPIs were less than 1.0000 during other periods investigated, ranging from 0.8948 to 0.9714, indicating that the efficiency of EPHS has been decreasing since 2013. The Tobit regression showed that the regression coefficients of per capita GDP, population density, the proportion of older people aged over 65, and the proportion of ethnic minority population were 0.0286, -0.0003, -0.0316, and - 0.0041 respectively, which were statistically significant (p < 0.05). There was a short-term improvement in the efficiency of EPHS in Hainan after the launch of the new round of health reform. However, this trend has not been sustained after 2013. In particular, equalized financial investment in essential public health could not fulfill the needs of poor counties. This has resulted in the inability to improve scale efficiency in some counties, which in turn has affected the improvement of overall EPHS efficiency. Therefore, to promote EPHS efficiency sustainably, it is suggested that under this model of provincial control of counties, the equity of resource allocation should be effectively improved while further advancing the technology of service delivery.

An empirical study on the measurement and influencing factors of carbon emission efficiency in China's transportation industry

&lt;p&gt;The severe climate problem has forced the Chinese government to put forward the goal of "carbon peak" and "carbon neutrality", and the transportation industry is a key area of carbon emission reduction. Based on this background, this paper introduces the BCC model and the Malmquist-Luenberger index model to measure the carbon emission efficiency of China's provincial transportation industry from the static and dynamic perspectives from 2014 to 2020. At the same time, the Tobit model is used to estimate the influencing factors of carbon emission efficiency. The results show that: (1) The overall transportation carbon emission efficiency level is low. The comprehensive efficiency of 30 provinces is at [0.6634,0.7154], which needs to be improved urgently. (2) The carbon emission efficiency of transportation is in a growing trend, and the ML index is 1.142, which is significantly higher than 1.0. In addition, the mean value of technical efficiency is 1.015, and the mean value of technological progress efficiency is 1.125. The two factors jointly affect comprehensive efficiency. (3) The carbon emission efficiency of different regions is heterogeneous. The carbon emission efficiency of East China and North China is better than that of Northeast China and South China, while the carbon emission efficiency of Northwest China and Southwest China is at the middle level in China. (4) External environmental factors, such as regional GDP, resident population and consumption level, have a significant impact on the carbon emission efficiency of transportation.&lt;/p&gt;&#x0D;

The Impact of the Farming Insurance Program on the Efficiency of Lowland Rice Farming in Rias Village, South Bangka Regency

The rice farming insurance program (AUTP) aims to support farmers in their rice production. This study aimed to analyze the effect of farmers’ participation in the AUTP program on the technical efficiency of lowland rice farming in Rias Village. The sample was determined using purposive sampling, which included 30 AUTP participants and 30 non-AUTP participants. The data was analyzed using the stochastic frontier production function and independent sample t-test. The results showed that the total surface area of farming, the amount of phosphorus and potassium fertilizer significantly affected rice production (α = 5 percent). Average value of technical efficiency of lowland farming was 0.50 (AUTP participating farmers) and 0.34 (non-AUTP participating farmers), which was below the threshold of the average technical efficiency (0.70). Thus, lowland rice farming was technically inefficient. The lowland rice farming of AUTP participants was slightly more efficient than non-AUTP participant farmers, but was not enough to redeem efficiency. Farmers’ age, education, number of family of farmers, duration of farmers joined a farmers group and farmers’ participation in the AUTP programs had significant effects on TE in lowland rice farming (α = 5 percent). Intensive assistance from the agricultural extension workers regarding the technical management of lowland rice farming would be beneficial.