Value Of Technical Efficiency Research Articles

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.

Energy Efficiency of Kenaf Cultivation in Kelantan, Malaysia by Using Data Envelopment Analysis

Agricultural production has become aggressive energy concentrated in a determination to supply more food to the increasing population and provide sufficient and adequate essentials. The limited natural resources and the effect of the use of different energy sources on the environment and human health such as global warming, it is necessary to investigate energy consumption patterns in agriculture. In this study data envelopment analysis method approach has been used to determine the efficiencies of kenaf farmers concerning energy use in kenaf cultivation production activities in Kelantan, Malaysia. The study’s empirical result will help to segregate the 15 most efficient farmers and inefficient ones. Other than that, the data envelopment analysis method also will help to identify wasteful uses of energy from different sources by inefficient farmers and to suggest reasonable savings in energy uses from different sources of inputs. The rank method and distribution of virtual inputs are used to get insights into the individual Kenaf farmer performance, rank efficient farmers and identify the improved operating practices followed by a group of truly efficient Kenaf farmers. The result of the analysis indicates the average value of technical efficiency, Pure technical efficiency and Scale efficiency scores of kenaf cultivation production were 0.854, 0.962 and 0.887 respectively. These results imply that all inefficient farmers operate at optimum scale size and 11.3% energy saving is possible without affecting Kenaf yield level. Result also reveals higher potential contribution to total energy saving is from fertilizer (86.5%), Diesel (13%), Pesticides (0.3%) and human labor (0.2%).

Efficiency Analysis of Aromatic Ginger Farming (Kaempferia galangal L.) in Kudus Regency, Indonesia

Farm efficiency were influenced by the use of inputs as well as production factors to manage a farm. The study aimed were to analyze technical, allocative, and economic efficiency of Aromatic Ginger Farming (Kaempferia galangal L.) in Kudus Regency. Survey was used in this research. The research location was chosen purposively, based on biggest production in Kudus Regency, namely Dawe District and Jekulo District. Determination of respondents was using quota sampling, with 180 respondents. Data was analysed using analysis of technical, allocative, and economic efficiency. The results illustrate that Aromatic Ginger farming was technically efficient with an average technical efficiency value of 0.9962. The production elasticity value of 0.979 means that the production scale was in a reasonable condition.

Technical efficiency of traditional agriculture based on local knowledge of smallholder farmers

Increasing productivity is a challenge for small farmers in managing their farms. The objectives of this study were to analyze the technical efficiency of potato farming using local knowledge of traditional agriculture and to analyze the variables that contribute to the technical inefficiency of potato farming in the Arfak Mountains. This study was conducted in three districts of the Arfak Mountains Regency of West Papua Province: Anggi, Sururey, and Hingk. This study used cross-sectional data obtained from structured interviews with 140 farmers. The determinants and efficiency levels were estimated using stochastic frontier analysis. The findings of this study indicate that farmers who implement traditional farming systems with local knowledge have an average technical efficiency of 52%, equivalent to the average technical efficiency value of potatoes in other developing countries without local knowledge of 40–70 percent. The variables of extension frequency, total household income, degree of output commercialization, distance between the farmer’s house and the farm location, and fallow length are the determining factors for farmers' technical efficiency. The implication is that traditional farmers can improve their technical efficiency through technological improvements, the use of appropriate inputs, infrastructure improvements, intensive counseling, and assistance in correctly managing their farms.

Comparison of Hospitals in Jakarta as Decision-Making Unit for Technical Efficiency and Cost Values: Application of DEA and SFA

The implementation of national health insurance in Indonesia in 2014 as an effort to provide universal health care was known asthe BPJS program. It was named after the responsible agency: Badan Penyelenggara Jaminan Sosial (Health Social Security Administrator). In its early years of implementation, it was indicated that it was not financially optimal because it made a significant financial loss. Therefore, this research was conducted to examine the efficiency level of several hospitals in Jakarta from a technical and cost perspective. The 2018 data was obtained from the Ministry of Health and BPJS. The survey covered 36 hospitals from various regions in Jakarta and was analyzed using Data Envelopment Analysis and Stochastic Frontier Analysis. DEA Solver LV 8 and Frontier 4.1 were the primary tools in this study. There were two significant results of this study. First, most hospitals in Jakarta were efficient in terms of technical efficiency score of DEA (0.73) and SFA (0.52), whereas cost efficiency was mediocre with a score of DEA (0.56) and SFA (0.50). Second, three indices (regional technical efficiency score, regional cost efficiency score, and ownership cost efficiency score) showed similar patterns for DEA and SFA efficiency scores except for the ownership technical efficiency index. It is recommended that the government should immediately improve the centralized national database for hospitals and decide strategic policy to arrange for cooperation between hospitals primarily by sharing their data on hospitals’ load and staff availability.

Evaluation of Urban Flood Governance Efficiency Based on the Data Envelopment Analysis Model and Malmquist Index: Evidence from 30 Provincial Capitals in China

Urban flooding disasters endanger people’s lives and property while causing significant economic damage to cities. To further improve the efficiency of urban flooding governance and promote the optimal allocation of resources, this article selects the number of people in flood control, medical and health security, financial expenditure on flood control, affected population, and direct economic loss as evaluation indicators from the input–output perspective; it measures the efficiency of urban flooding governance in 30 provincial capitals in China from 2012 to 2021 using the DEA model and Malmquist index method and identifies the key factors affecting the efficiency of urban flooding governance. The research results show that in 2021, the average value of the comprehensive technical efficiency of flood disaster governance in 30 provincial capitals in China was 0.408, the development trend was not optimistic, and the constraint factor was scale efficiency. The interannual average value of the total factor productivity index of urban flood disaster governance from 2012 to 2021 was 0.976, and the overall trend was decreasing year by year, during which some cities were able to achieve a yearly increase in governance efficiency, but most cities still faced a severe situation in flood disaster governance. The total factor productivity index varied enormously across towns with the variation in annual precipitation; the greater the annual precipitation, the greater the total factor productivity index of urban flooding disaster governance in the urban agglomerations, and the comprehensive technical efficiency change was consistent with its trend change. This consistency has a positive contribution to the total factor productivity index of urban flooding disaster governance.