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Economic Efficiency In Organic Farming: Evidence From Cotton Farms In Viotia, Greece

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  • Tzouvelekas, Vangelis
  • Pantzios, Christos J.
  • Fotopoulos, Christos

Abstract

Using recent advances in the stochastic production frontier framework, this paper presents an empirical analysis of technical, allocative and economic efficiency of a sample of organic and conventional cotton farms located in Greece. The results suggest that both farm types in the sample examined are technically, allocatively and economically inefficient. Farmer's age and education and farm size are important factors in explaining differentials in efficiency estimates. In comparative terms, organic farms exhibit lower efficiency scores vis-Ã -vis their conventional counterparts in terms of technical and economic efficiency; regarding allocative efficiency both farm types are almost equally inefficient. Low efficiency scores in both types of farming may be attributed to the respective intervention policies of the last 20 years.

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File URL: http://purl.umn.edu/15288
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Bibliographic Info

Article provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.

Volume (Year): 33 (2001)
Issue (Month): 01 (April)
Pages:

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Handle: RePEc:ags:joaaec:15288

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Web page: http://www.saea.org/jaae/jaae.htm
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Related research

Keywords: cotton; efficiency; organic farming; stochastic production frontier; Productivity Analysis;

References

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  1. Kumbhakar, Subal C & Biswas, Basudeb & Bailey, DeeVon, 1989. "A Study of Economic Efficiency of Utah Dairy Farmers: A System Approach," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 595-604, November.
  2. Seale, James M, Jr, 1990. "Estimating Stochastic Frontier Systems with Unbalanced Panel Data: The Case of Floor Tile Manufactories in Egypt," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 5(1), pages 59-74, January-M.
  3. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
  4. Hallam, David & Machado, Fernando, 1996. "Efficiency Analysis with Panel Data: A Study of Portuguese Dairy Farms," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 23(1), pages 79-93.
  5. Kopp, Raymond J. & Diewert, W. Erwin, 1982. "The decomposition of frontier cost function deviations into measures of technical and allocative efficiency," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 319-331, August.
  6. Bravo-Ureta, Boris E. & Evenson, Robert E., 1994. "Efficiency in agricultural production: The case of peasant farmers in eastern Paraguay," Agricultural Economics, Blackwell, vol. 10(1), pages 27-37, January.
  7. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics, Blackwell, vol. 7(3-4), pages 185-208, October.
  8. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-98, January.
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Citations

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Cited by:
  1. 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.
  2. Argiles, Josep M. & Brown, Nestor Duch, 2010. "A comparison of the economic and environmental performances of conventional and organic farming: evidence from financial statements," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 11(1), January.
  3. Charyulu Kumara D. & Biswas, Subho, . "Economics and Efficiency of Organic Farming vis-à-vis Conventional Farming in India," IIMA Working Papers WP2010-04-03, Indian Institute of Management Ahmedabad, Research and Publication Department.
  4. Steven C. Blank & Gary D. Thompson, 2004. "Can/Should/Will A Niche Become the Norm? Organic Agriculture's Short Past and Long Future," Contemporary Economic Policy, Western Economic Association International, vol. 22(4), pages 483-503, October.
  5. Margarita Genius & Christos Pantzios & Vangelis Tzouvelekas, . "Information Acquisition and Adoption of Organic Farming Practices: Evidence from Farm Operations in Crete, Greece," Working Papers 0305, University of Crete, Department of Economics.
  6. Cisilino, Federica & Madau, Fabio A., 2007. "Organic and Conventional Farming: a Comparison Analysis through the Italian FADN," MPRA Paper 21786, University Library of Munich, Germany.
  7. Lohr, Luanne & Park, Timothy A., 2006. "Technical Efficiency of U.S. Organic Farmers: The Complementary Roles of Soil Management Techniques and Farm Experience," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(2), October.
  8. Arandia, Amaia & Aldanondo-Ochoa, A., 2008. "Social Versus Private Efficiency: A Comparison of Conventional and Organic Farming Systems in Vineyard Production," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44416, European Association of Agricultural Economists.
  9. Dimara, Efthalia & Pantzios, Christos J. & Skuras, Dimitris & Tsekouras, Kostas, 2005. "The impacts of regulated notions of quality on farm efficiency: A DEA application," European Journal of Operational Research, Elsevier, vol. 161(2), pages 416-431, March.
  10. Pantzios, Christos J. & Rozakis, Stelios & Tzouvelekas, Vangelis, 2002. "Assessing the Perspectives of EU Cotton Farming: Technical and Scale Efficiencies of Greek Cotton Growers," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24844, European Association of Agricultural Economists.
  11. Fletschner, Diana K. & Zepeda, Lydia, 2002. "Efficiency Of Small Landholders In Eastern Paraguay," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(02), December.
  12. D. Kumara Charyulu & Subho Biswas, 2010. "Economics and Efficiency of Organic Farming vis-à-vis Conventional Farming in India," Working Papers id:2497, eSocialSciences.
  13. Iraizoz, Belen & Rapun, Manuel & Zabaleta, Idoia, 2003. "Assessing the technical efficiency of horticultural production in Navarra, Spain," Agricultural Systems, Elsevier, vol. 78(3), pages 387-403, December.
  14. Funtanilla, Margil & Lyford, Conrad P. & Wang, Chenggang, 2009. "An Evaluation of the Organic Cotton Marketing Opportunity," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49359, Agricultural and Applied Economics Association.
  15. Madau, Fabio A., 2005. "Technical Efficiency in Organic Farming: An Application on Italian Cereal Farms Using a Parametric Approach," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24545, European Association of Agricultural Economists.
  16. Bhuyan, Sanjib & Postel, Michael, 2009. "Determinants of Organic Dairy Farm Profitability: Some Evidence from the Northeast United States," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49934, Agricultural and Applied Economics Association.
  17. Sauer, Johannes & Park, Timothy A. & Graversen, Jesper T., 2007. "Organic Farming In Denmark-Productivity, Technical Change And Market Exit," 47th Annual Conference, Weihenstephan, Germany, September 26-28, 2007 7618, German Association of Agricultural Economists (GEWISOLA).
  18. Sauer, Johannes & Graversen, Jesper T. & Park, Timothy A., 2006. "Breathtaking or Stagnating? - Productivity, Technical Change and Structural Dynamics in Danish Organic Farming," 2006 Annual meeting, July 23-26, Long Beach, CA 21481, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  19. Salhofer, Klaus & Kargiannis, Giannis & Sinabell, Franz, 2012. "Scale Efficiency in Organic and Conventional Dairy Farming," Congress Papers 124119, Italian Association of Agricultural and Applied Economics (AIEAA).

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