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Productivity improvement in Korean rice farming: parametric and non-parametric analysis

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  • Kwon, Oh Sang
  • Lee, Hyunok
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    Abstract

    The published empirical literature on frontier production functions is dominated by two broadly defined estimation approaches – parametric and non‐parametric. Using panel data on Korean rice production, parametric and non‐parametric production frontiers are estimated and compared with estimated productivity. The non‐parametric approach employs two alternative measures based on the Malmquist index and the Luenberger indicator, while the parametric approach is closely related to the time‐variant efficiency model. Productivity measures differ considerably between these approaches. It is discovered that measures of efficiency change are more sensitive to the choice of the model than are measures of technical change. Both approaches reveal that the main sources of growth in Korean rice farming have been technical change and productivity improvements in regions of the country that have been associated with low efficiency.

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    File URL: http://purl.umn.edu/117965
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    Bibliographic Info

    Article provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural and Resource Economics.

    Volume (Year): 48 (2004)
    Issue (Month): 2 (June)
    Pages:

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    Handle: RePEc:ags:aareaj:117965

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    Related research

    Keywords: Crop Production/Industries; Productivity Analysis;

    References

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    1. Ferrier, Gary D. & Lovell, C. A. Knox, 1990. "Measuring cost efficiency in banking : Econometric and linear programming evidence," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 229-245.
    2. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    3. Sumner, Daniel A. & Lee, Hyunok & Hallstrom, Daniel G., 1999. "Implications of trade reform for agricultural markets in northeast Asia: a Korean example," Agricultural Economics, Blackwell, vol. 21(3), pages 309-322, December.
    4. Fulginiti, Lilyan E. & Perrin, Richard K., 1998. "Agricultural productivity in developing countries," Agricultural Economics, Blackwell, vol. 19(1-2), pages 45-51, September.
    5. Cornwell, Christopher & Schmidt, Peter & Sickles, Robin C., 1989. "Production Frontiers With Cross-Sectinal And Time-Series Variation In Efficiency Levels," Working Papers 89-18, C.V. Starr Center for Applied Economics, New York University.
    6. Huang, Yiping & Kalirajan, K. P., 1997. "Potential of China's grain production: evidence from the household data," Agricultural Economics, Blackwell, vol. 17(2-3), pages 191-199, December.
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    Cited by:
    1. Johannes Sauer & Klaus Frohberg & Henrich Hockmann, 2006. "Stochastic efficiency measurement: The curse of theoretical consistency," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 139-166, May.
    2. Chang, Hung-Hao & Wen, Fang-I, 2008. "Off-farm Work, Technical Efficiency, and Production Risk: Empirical Evidence from a National Farmer Survey in Taiwan," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6164, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Sauer, J.F., 2005. "“Efficiency Flooding”: Black-Box Frontiers and Policy Implications," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 2(1), pages 17-52.
    4. Mary Graham, 2008. "Developing a Social Perspective to Farm Performance Analysis," Economics Series 2008_17, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
    5. Margaret Brock & Monica Keneley, 2004. "Section 46: The High Court, Dawson and The Senate: A Review of the Recent Debate," Economics Series 2004_18, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
    6. Mary Graham, 2008. "Developing an Integrated Measure of Farm Performance," Economics Series 2008_18, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
    7. Mehmet Ulubasoglu & Nejat Anbarci, 2005. "Endogenous Liberalization and Within-Country Inequality: A Theoretical and Empirical Analysis," Economics Series 2005_18, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
    8. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.

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