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Technical Inefficiency of Chili Farms in Thailand

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  • Krasachat, Wirat

Abstract

The primary purpose of this study is to measure and investigate factors affecting technical inefficiency of chili farms in Thailand. This study applies a stochastic frontier production function approach to measure farm-specific technical inefficiency using the 2013 farm-level cross-sectional survey data of Thai chili farms in a single estimation technique applying the maximum likelihood estimation method. The non-negative technical inefficiency effects are modeled as a function of farm-specific management and socio-economic factors. The empirical results suggest two important findings. First, there is confirmation that the difference in variety used has influenced the technical inefficiency of chili farms. Second, good agricultural practice (GAP) also has different impacts on technical inefficiency in Thai chili production in different farms.

Suggested Citation

  • Krasachat, Wirat, 2017. "Technical Inefficiency of Chili Farms in Thailand," 91st Annual Conference, April 24-26, 2017, Royal Dublin Society, Dublin, Ireland 258655, Agricultural Economics Society.
    • Handle: RePEc:ags:aesc17:258655
    DOI: 10.22004/ag.econ.258655
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    References listed on IDEAS

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    7. Vo Hung Son, Tran & Coelli, Tim & Fleming, Euan, 1993. "Analysis of the technical efficiency of state rubber farms in Vietnam," Agricultural Economics, Blackwell, vol. 9(3), pages 183-201, September.
    8. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    9. 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.
    10. Sharma, Khem R. & Leung, PingSun & Zaleski, Halina M., 1999. "Technical, allocative and economic efficiencies in swine production in Hawaii: a comparison of parametric and nonparametric approaches," Agricultural Economics, Blackwell, vol. 20(1), pages 23-35, January.
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    Cited by:

    1. Morais, G. & Braga, J.M., 2018. "Irrigation and farm efficiency in Brazil," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275987, International Association of Agricultural Economists.

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    Keywords

    Agricultural and Food Policy; Crop Production/Industries; Productivity Analysis;
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