Technical Efficiency Research Articles

Impact of digital economy development on corporate green governance efficiency

ABSTRACT This study investigates the impact of regional digital economy development on firms’ Green Total Factor Productivity (GTFP), aiming to understand its role in enhancing green governance efficiency. Using panel data from Chinese listed firms and cities from 2011 to 2019, we empirically analyse the impact. Our findings reveal that regional digital economy development significantly improves firm GTFP by enhancing technical efficiency, fostering ICT agglomeration, and advancing industrial structure. Additionally, the impact varies based on city traits (e.g. fossil-fuel reliance, low-carbon focus, and Yangtze River Economic Belt location) and firm specifics (e.g. state-owned enterprises and financially constrained firms), as well as market competition. These results highlight the importance of tailored strategies to leverage digitalisation for firm-level green transition, and infer promoting the digital economy, fostering ICT agglomeration, and developing region-specific strategies considering diverse contexts (i.e. city traits, firm specifics and market) to enhance firm GTFP and support sustainable growth.

Exploring the corruption‐inefficiency nexus using an endogenous stochastic frontier analysis

AbstractSeveral scholars report that, due to reverse causality, the endogeneity problem makes it difficult to identify the real effect of institutional factors at the local level, such as corruption, on firm efficiency. This study employs a panel stochastic frontier analysis that endogenizes production efficiency and robustly assesses the effect of corruption at the local level on firms' technical efficiency. We analyze a large panel of Italian firms operating in the building sector from 2013 to 2019 showing that the determinants of local institutional quality affects firms' performance, with the rule of law and control of corruption playing a preeminent role. Controlling for endogeneity, the magnitude of the effects of institutional quality factors at the local level significantly increase. Our findings are robust to alternative IV strategies, alternative specifications of the production function, and the inclusion of other factors that may affect firm efficiency.

A New Approach Using the Lindley Distribution in Stochastic Frontier Analysis

Abstract Stochastic Frontier Analysis plays a crucial role in assessing technical efficiency and modelling production processes across various disciplines. Traditionally, SFA assumes specific error distributions, such as the normal distribution for random effects and the half-normal distribution for technical efficiency. However, the choice of error distributions can significantly impact model estimation and interpretation. This study proposes a novel approach by incorporating the Lindley distribution as a flexible error distribution in SFA, termed Lindley Stochastic Frontier Analysis (L-SFA). This extension offers a more detailed representation of the error structure, potentially enhancing the accuracy of efficiency estimates. The derivation and solution of maximum likelihood estimators for the theoretical foundations of L-SFA are provided. Furthermore, a simulation study demonstrates the advantages of L-SFA over traditional SFA. The findings underscore the importance of flexible error distributions in capturing the complexities of production processes with this new SFA extension. Keywords: Efficiency, Error distribution, Lindley stochastic frontier analysis, Maximum likelihood estimation, Simulation

The Impact of African Swine Fever on the Efficiency of China’s Pig Farming Industry

African Swine Fever (ASF) is a severe viral disease that has significantly impacted the pig farming industry in China. It first broke out in China in 2018 and quickly spread to multiple provinces, significantly affecting the production efficiency of the pig farming industry. This study utilized pig production data from 17 provinces in China from 2010 to 2022 and applied the Malmquist production efficiency index and panel regression methods to assess the impact of the ASF epidemic on the efficiency of the pig farming industry. The results indicated that the outbreak of ASF significantly reduced overall production efficiency, which magnified the vulnerabilities of the production system. Although there was a general decline in technological change and pure technical efficiency, the increase in scale efficiency suggested effective resource optimization by farmers under resource-constrained conditions. In light of these findings, it is recommended to strengthen biosecurity education and epidemic prevention measures in the pig farming industry and to enhance technological innovation and the application of smart technologies to improve production efficiency and disease response capabilities. Additionally, timely adjustments in farming scale and resource optimization will be key to addressing future challenges. Through these strategies, the pig farming industry can maintain stable production efficiency during future epidemics and push towards a more efficient and refined production model.

Effects of public procurement on corporate total-factor carbon productivity: evidence from China

Using balanced panel data for listed Chinese industrial firms from 2016 to 2021, this study examines the effect of public procurement (PP) on corporate total-factor carbon productivity (CTFCP) and the related mechanisms. The results show that (1) there is a positive correlation between PP and CTFCP. (2) PP exerts a more pronounced incentivizing effect on CTFCP for state-owned enterprises, larger corporations, and those with weaker financing constraints. (3) We decompose CTFCP into technological progress (TECH), pure technical efficiency (PTE), and scale efficiency (SE) and find that PP improves TECH and PTE, and the effect differs according to firm ownership, scale, and financing constraints. (4) PP promotes CTFCP through labor productivity (LP), capital productivity (CP), and corporate green innovation (CGI) while the mediating role of environmental productivity (EP) is not significant. This study contributes to theoretical discourse on PP’s influence on CTFCP and has practical implications for PP agencies and enterprises.

Analysis of Technical Efficiency of Fertilizer Subsidy Program in Coffee Farming, A Case study of Kenya

Fertilizer subsidy program is used to boost productivity by availing fertilizer to farmers at a cheaper price than the market price. This research sought to determine the technical efficiency of fertilizer subsidy program on coffee farming in Kenya. Coffee is a major cash crop of small-scale farmers, which has been experiencing declining productivity. The study adopted non-experimental cross-section research design. The study was carried out in Mukurwe-ini Sub-County, in Nyeri country, Kenya. Structured questionnaire were used to collect primary data from coffee farmers. Stochastic frontier production function (SFA) was used to evaluate the technical efficiency of coffee farming by analysing the relationship between coffee inputs and outputs. The SFA results revealed that fertilizer subsidy has a significant effect on technical efficiency. The technical efficiency for the individual farmers was found to range between 10.44% and 95.15% with a mean of 77.87%. The results revealed that about 76% of the coffee farmers were operating above 70 percent or more technical efficiency levels. Additionally, about 94% of the coffee farmers were operating at a technical efficiency level of above 50%. The coffee cooperative societies had variance in their technical efficiency - Rumukia at 80.65%, Ruthaka at 76.12%, Rugi at 79.97% and Gikaru at 79.24%. Technical inefficiency was found to be significantly influenced by age of the farmers and cooperative societies’ management. The study recommends development of inclusive policies that address income disparities among coffee farmers, improvement of cooperative societies’ management, and enhancing farmers’ trainings

Clinical comparison of aspiration to stentriever-mediated aspiration thrombectomy for M2 occlusions

ObjectiveWhile revascularization for M2 occlusions is generally recommended and considered beneficial, the optimal approach (aspiration vs stentriever/combined) is less well defined in the literature. We sought to compare outcomes after thrombectomy with manual aspiration thrombectomy alone (MAT) or stentriever-mediated aspiration thrombectomy (SMAT) Materials and MethodsTo circumvent inter-operator technical variability, patients underwent thrombectomy for M2 occlusions by a single operator and were stratified by first pass approach: manual aspiration thrombectomy (MAT/aspiration alone) and stentriever-mediated manual aspiration thrombectomy (SMAT/combination). Efficacy outcomes included good reperfusion (mTICI score ≥2b) and a favorable 90-day functional outcome (mRS score of ≤2). Safety outcomes included 90-day mortality and symptomatic intracranial hemorrhage. ResultsOne hundred three patients were identified: 57 underwent MAT whereas 46 underwent SMAT. Good reperfusion (TICI 2b or greater) was comparable between groups (93.5 % vs. 87.7 %, P=0.33). The intracranial hemorrhage rate was higher with SMAT compared to MAT (13 % vs. 1.8 %, P=0.04). Puncture-to-recanalization time was longer in SMAT (34.4 vs. 19.9 minutes, P<0.001). In multivariable analysis, complete or good reperfusion was associated with shorter puncture-recanalization time (adjusted odds ratio [aOR], 0.85) or less total passes (aOR, 0.58), respectively. In a propensity score matched analysis of 66 patients with comparable baseline and technical efficiency, the safety outcomes were not different between SMAT and MAT groups. ConclusionsSMAT compared with MAT did not result in an improved revascularization rate or functional outcome, while it was related to more hemorrhagic complications and mortality. Given cost and time savings with manual aspiration alone, this approach may be optimal as first line for M2 occlusions.

The efficiency evaluation of traditional Chinese medicine hospitals by data envelopment analysis in Zhengzhou, China.

This study aimed to evaluate the operational efficiency of traditional Chinese medicine (TCM) hospitals in China. Pearson's analysis was used to test the correlation between the input and output variables. Data envelopment analysis (DEA) was utilized to analyze the input and output variables of 16 TCM hospitals, and each hospital efficiency score was computed by Deap 2.1, assuming variable return to scale (VRS), which is an input-oriented model. t tests were conducted to confirm the significant difference of efficiency scores at the hospital level and by hospital type, and ANOVA was used to test for significant differences in efficiency scores according to hospitals' size. The correlation coefficient of the input and output indicators was between 0.613 and 0.956 (p < 0.05). The difference in number of doctors (ND) and numbers of pharmacists (NP) were statistically significant (p < 0.05) at the hospital level. The mean efficiency scores for technical efficiency (TE), pure technical efficiency (PTE), and scale efficiency (SE) in secondary TCM hospitals were 0.766, 0.919, and 0.838, respectively. Additionally, the lowest TE, PTE, and SE were 0.380, 0.426, and 0.380, respectively. Eight TCM hospitals in this study were DEA efficient, with an efficiency score of 1. There were no statistically significant differences in TE, PTE, and SE among hospital levels, hospital types or hospital sizes groups (p > 0.05). This study revealed that tertiary TCM hospitals had a greater level of efficiency than secondary TCM hospitals. In our study, 50% of TCM hospitals had inefficient management. Therefore, to activate the new development power of TCM hospitals, it is necessary to reform and improve the management system and mechanism of TCM hospitals, optimize the development environment of TCM hospitals and formulate development plans and measures based on local conditions.

Heterogeneous Porter Effect or Crowded-Out Effect: Nonlinear Impact of Environmental Regulation on County-Level Green Total Factor Productivity of Pigs in the Yangtze River Basin of China

Green total factor productivity (GTFP) is critical to both the economic and ecological objectives of pig breeding. This research utilizes the SBM-ML model to calculate the GTFP of pig breeding in 381 counties within the Yangtze River Basin from 2014 to 2021. Then the GTFP is further decomposed into technical efficiency (MLEC) and technical progress (MLTC) to conduct in-depth exploration. The regression results reveal that: (1) Environmental regulation (ER) has significant double-threshold effects on GTFP, MLEC, and MLTC. (2) MLTC is the main force of GTFP growth, and stronger ER does not always lead to better GTFP growth. (3) GTFP is boosted by mechanization enhancement and industrial agglomeration limitation. (4) Counties in non-provincial capital cities and those closer to the river exhibit greater ER threshold effects. (5) Both pig price and transportation efficiency play a moderating role. (6) Further analysis demonstrates that ER simultaneously reduces pig production capacity and carbon emissions, as well as improves the water quality. And the reduction of ER, although beneficial for capacity, has a significant negative impact on GTFP. Finally, this study concludes with policy recommendations to boost the new quality productivity in the pig industry.

Determinants of smallholder membership in farmers’ groups in the pigeon pea-based farming system in Uganda

BackgroundMembership in farmers’ group (FGs) is an important social aspect of agricultural development. Little is known about the relative importance and benefits from participation in FGs in Uganda, specifically for pigeon pea smallholders in northern Uganda.MethodsWe conducted a cross-sectional survey with 257 smallholders to examine the factors that motivate farmer’s group membership and its influence on pigeon pea yield and technical efficiency (TE) in northern Uganda. We applied the Stochastic Production Frontier (SPF) model and complementary models to assess membership impact on pigeon pea yield and TE determinants, respectively. TE is defined as the degree to which smallholders use the minimum feasible farm inputs to produce a given level of pigeon pea grain.ResultsResults show that FG members were generally older and more experienced, and had better access to extension services (76%) and credit (43%) compared to non-members. Smallholders’ age, access to agricultural training, extension services, and the distance travelled to market centres were statistically significant (p < 0.05), thus limiting the likelihood of FG membership. TE for both groups was low and quite similar, at 63% and 59% for members and non-members, respectively, implying that both groups did not use the available farm resources to maximize pigeon pea yield.ConclusionOur results confirm that FG membership enhances smallholder’s access to extension, agricultural training services and credit. For northern Uganda, the study provides recommendations for increased government investment in the human, financial and physical capacity of extension agents as a strategy for rural development and improved livelihoods. In addition, policy incentives can encourage farmers to seek membership in farmers’ groups and related associations.

Strategies to Inelasticize the Halal Food Industry in Indonesia

This research has three main objectives. First, to analyze the potential and prospects of the halal food industry in Indonesia. Second, analyze the elasticity of the halal food industry in Indonesia. Finally, formulate a strategy to inelasticize the halal food industry in Indonesia. The research approach used in this study is mixed methods, which combines quantitative and qualitative research. There are several important findings in this study. First, the potential and projection of the halal food industry in Indonesia, which is based on estimates for 2021, continues to grow. Second, the factors that influence the demand for halal food in Indonesia are income, price, advertising, and halal labeling, and the highest -lowest short-term elasticity values are price elasticity, halal labeling, advertising, and income. Finally, the strategy to inelasticize the halal food industry in Indonesia is divided into two, namely priority strategies and supporting strategies. Priority strategies include: Maintain the stability of people's income; Increase production efficiency (technical efficiency and price efficiency); Improve the quality of Human Resources (HR) and technology improvement; Application of tax incentives; Improving the quality and quantity of advertising; Socialization of halal labeling; Halal certification management; Development of halal supply; Development of halal logistics. Supporting strategies consisting of Need for innovation in the development of halal food industry products; Guarantee of legal certainty and quality of halal food products; Increased ease of location and access; Service innovation; Improved facilities.

Decreasing Productivity in the Primary Healthcare: A Study of the Brazilian Case

ABSTRACT: In 2015, the United Nations (UN) proposed the 2030 Agenda, a resolution that outlines the global goals for sustainable development. This report focuses on promoting health and well-being, emphasizing the importance of primary healthcare (PHC). However, Brazil faces challenges in managing its healthcare system, exacerbated by fiscal policy changes that have reduced public sector expenditures after 2015. This study was motivated by these recent changes in Brazil’s fiscal policy. We evaluated potential fluctuations in total factor productivity (TFP) in 5,524 Brazilian municipalities’ primary healthcare from 2015 to 2019. TFP, a measure of efficiency and production technology in PHC, was computed using the bootstrapping Malmquist productivity index (MPI) derived from the Data Envelopment Analysis (DEA) algorithm. This study focused on the economic recession and austerity measures initiated in 2015. Moreover, it’s essential to highlight that the SARS-CoV-2 pandemic in Brazil in 2020 brought significant changes to the country’s economic, social, and health dynamics. Therefore, this research intentionally concentrated on the pre-pandemic period. Our results revealed that TFP in the PHC sector in Brazil decreased between 2015 and 2019. It was possible to note that three out of every four Brazilian municipalities experienced either stagnation or a decline in the TFP of primary healthcare, with more pronounced challenges in the Midwest and Northeast regions. Looking at the TFP elements, we could see a continuous drop in technical efficiency everywhere in the country, markedly in the Midwest and Northeast. Conversely, there was a considerable uptick in Brazil’s technological component. These results implied that there might have been advancements in PHC’s technological infrastructure, preventing even less favorable outcomes in the TFP indicator. We concluded that the productivity of primary healthcare in Brazil declined when the 2015 fiscal ceiling was implemented. This decrease in performance was evident in the sluggish growth rate of primary healthcare inputs, a diminution in vaccination coverage indicators, and an increase in hospitalizations for preventable causes. Given that health is a crucial component of social well-being, it is vital to highlight the need for comprehensive efforts to guarantee the effective operation and advancement of primary healthcare services, even during economic downturns.

Application of data envelopment for technical efficiency analysis of the electrohydraulic forming process using the aluminum alloy sheets for automotive panels

Application of data envelopment for technical efficiency analysis of the electrohydraulic forming process using the aluminum alloy sheets for automotive panels

Macro, meso, and micro decomposition of energy consumption in Ghana: Role of shocks (local and global) and energy policy interventions

This study conducted a macro, meso, and micro index decomposition analysis of energy consumption in Ghana from 2013 to 2020, highlighting the roles of local (e.g., power crisis) and global (e.g., COVID-19) shocks, as well as energy policy initiatives on technical efficiency improvement. We found that technical efficiency improvements varied at different times of the implementation period of energy policy initiatives and across various macro, meso, and micro-sectors of the economy. Technical efficiency improvement varied significantly across these sectors but worsened much more in service sector during periods of local and global shocks. Additionally, the importance of activity, structural, and intensity effects differed over time and across the macro, meso, and micro-sectors of the economy. We discuss the policy implications of these findings.

How does urban industrial structure upgrading affect green productivity? The moderating role of smart city development

The concept of the smart city, which has recently gained prominence as a new urbanization model, represents a practical approach to achieving a balance between economic development and environmental protection. This article analyzes the effect of upgrading urban industrial structures on green total factor productivity (GTFP) and addresses a gap in evaluating the mediating role of smart city development. Utilizing panel data from Chinese prefecture-level cities, the study finds that internal advancements and diversification in industrial structures significantly enhance GTFP, while industrial structure rationalization displays a complex, non-linear correlation with GTFP. Moreover, smart city development is found to positively moderate the relationship between industrial structure and productivity, particularly in terms of outer-advancement, diversification, and rationalization. The moderating effect is evident in green technical efficiency rather than green technological innovation. Cluster analysis reveals significant effects in regions characterized by irrational, diversified, and naturally rational industrial structures. Additionally, the study identifies five impact mechanisms facilitated by smart cities, namely ICT, finance development, digitalization, smart governance, and social trust. These conclusions are of material significance to promote high-quality urban development.

Technical Efficiency of Combine Harvester in Mindugading Village

Technical Efficiency of Combine Harvester in Mindugading Village

Development of Geotechnical Seismic Isolation System in the Form of Vertical Barriers: Effectiveness and Perspective

This paper discusses the concept of geotechnical seismic isolation (GSI) systems, characterized by new principles of action, to reduce seismic loads on buildings. The advantages and disadvantages of GSIs and their environmental and economic reliability are analyzed. The aim of the study is to develop a geotechnical seismic isolation system in the form of vertical barriers, using a rubber–soil mixture (RSM). The novelty of the work lies in the definition of effective structural and technical solutions of vertical seismic barriers made of RSM, characterized by reliability in providing seismic isolation. The ground and superstructure interactions are modeled in PLAXIS 2D software from 2021, using the finite element method, using the accelerogram of the Kobe and Northridge earthquakes. The results confirm the positive impact of using an RSM as an effective GSI geometrical. The results show that the GSI system using an RSM reduces horizontal accelerations by 60%. Significant acceleration reductions of 40–60% are also observed when the thickness and depth of GSI seismic barriers are increased. The results of the study contribute to the substantiation of methodology and scientific and technical efficiency of geotechnical seismic isolation as an economically favorable design alternative to the traditional seismic isolation system.

Capital Inflow and Technical Efficiency: A Comparative Analysis Between India and China

This article empirically investigates the impact of foreign direct investment (FDI) on the technical efficiency of manufacturing firms in India and China. We apply the first-stage, stochastic frontier analysis (SFA), to the translog production frontier. The first-stage method estimates simultaneously consider exogenous technical efficiency determinants and translog production function factors. We take foreign ownership and foreign inputs as exogenous determinants of technical efficiency with control variables and foreign technology input in the production frontier. Empirical results find that foreign technology shifts the production frontier by enhancing productivity for Chinese firms, not for Indian firms. Furthermore, domestic firms which use foreign inputs and foreign firms are more efficient. JEL Classification: F14, O31, O32

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

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

Technical efficiency and its determinants in health service delivery of public health centers in East Wollega Zone, Oromia Regional State, Ethiopia: Two-stage data envelope analysis

BackgroundPriority-setting becomes more difficult for decision-makers when the demand for health services and health care resources rises. Despite the fact that the Ethiopian healthcare system places a strong focus on the efficient utilization and allocation of health care resources, studies of efficiency in healthcare facilities have been very limited. Hence, the study aimed to evaluate efficiency and its determinants in public health centers.MethodsA cross-sectional study was conducted in the East Wollega zone, Oromia Regional State, Ethiopia. Ethiopian fiscal year of 2021–2022 data was collected from August 01–30, 2022 and 34 health centers (decision-making units) were included in the analysis. Data envelope analysis was used to analyze the technical efficiency. A Tobit regression model was used to identify determinants of efficiency, declaring the statistical significance level at P < 0.05, using 95% confidence interval.ResultsThe overall efficiency score was estimated to be 0.47 (95% CI = 0.36–0.57). Out of 34 health centers, only 3 (8.82%) of them were technically efficient, with an efficiency score of 1 and 31 (91.2%) were scale-inefficient, with an average score of 0.54. A majority, 30 (88.2%) of inefficient health centers exhibited increasing return scales. The technical efficiency of urban health centers was (β = -0.35, 95% CI: -0.54, -0.07) and affected health centers’ catchment areas by armed conflicts declined (β = -0.21, 95% CI: -0.39, -0.03) by 35% and 21%, respectively. Providing in-service training for healthcare providers increased the efficiency by 27%; 95% CI, β = 0.27(0.05–0.49).ConclusionsOnly one out of ten health centers was technically efficient, indicating that nine out of ten were scale-inefficient and utilized nearly half of the healthcare resources inefficiently, despite the fact that they could potentially reduce their inputs nearly by half while still maintaining the same level of outputs. The location of health centers and armed conflict incidents significantly declined the efficiency scores, whereas in-service training improved the efficiency. Therefore, the government and health sector should work on the efficient utilization of healthcare resources, resolving armed conflicts, organizing training opportunities, and taking into account the locations of the healthcare facilities during resource allocation.