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Technical Efficiency of Pepper Farms in Sarawak

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  • Jaafar, Abdul Hamid

    (Department of Agricultural Economics and Resource Faculty of Economics Universiti Kebangsaan Malaysia 43600 Bangi, Selangor D.E.)

  • jusoh, mansor

    (Department of Statistical Economics Faculty of Economics Universiti Kebangsaan Malaysia 43600 Bangi, Selangor D.E.)

Abstract

Pepper is an important crop in Sarawak. This is especially so for the interior population as the crop can be stored for a long period of time without any treatment. Pepper in Sarawak are cultivated by bumiputeras and non-bumiputeras. This paper has two objectives, the first is to determine the overall technical efficiency of the pepper cultivation industry in Sarawak and the second is to ascertain whether there is any difference in the technical efficiency of the bumiputera and non-bumiputera pepper farms. The method of technical efficiency measurement is calculated based on the Kopp technical efficiency measure while for the comparison of technical efficiency between ethnic groups, the method as suggested in Mansor Jusoh and Hamid Jaafar (1989) was utilized. The results indicate that the overall technical efficiency of pepper cultivation industry in Sarawak is very low. This implies that a greater output can be achieved with the present level of input usage. Further the results also indicate that the bumiputera farms are relatively less technically efficient than the non- bumiputera farms. Thus, appropriate measures must be taken so that scarce factors of production are used optimally.

Suggested Citation

  • Jaafar, Abdul Hamid & jusoh, mansor, 1997. "Technical Efficiency of Pepper Farms in Sarawak," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 31, pages 71-85.
    • Handle: RePEc:ukm:jlekon:v:31:y:1997:i::p:71-85
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    References listed on IDEAS

    as
    1. Raymond J. Kopp, 1981. "The Measurement of Productive Efficiency: A Reconsideration," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 96(3), pages 477-503.
    2. Jusoh, Mansor & Jaafar, Hamid, 1989. "A Nonparametric Approach To Estimating And Testing The Productive Efficiency Differential," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 12(1), pages 1-17, June.
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