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Assessing the Perspectives of EU Cotton Farming: Technical and Scale Efficiencies of Greek Cotton Growers

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  • Pantzios, Christos J.
  • Rozakis, Stelios
  • Tzouvelekas, Vangelis

Abstract

Utilizing the stochastic frontier approach, this paper estimates output and input-oriented technical and scale efficiency levels for a sample of cotton-growing farms in Thessaly, Greece. The empirical results suggest that Greek cotton farm operations are technically and scale inefficient. There is a considerable scope for improvement in resource use and thereby in farm income of cotton farms; Greek cotton farmers could reduce production costs by 20.4%, making more efficient utilization of the existing production technology. Factors responsible for the technical efficiency differentials observed among cotton-growers include the farmer's age and education as well as the farm's land fragmentation and output specialization.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 2002 International Congress, August 28-31, 2002, Zaragoza, Spain with number 24844.

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Date of creation: 2002
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Handle: RePEc:ags:eaae02:24844

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Keywords: Technical and scale inefficiency; stochastic frontier models; cotton production; Greece; Crop Production/Industries; C33; D24; O13;

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  1. 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.
  2. Reifschneider, David & Stevenson, Rodney, 1991. "Systematic Departures from the Frontier: A Framework for the Analysis of Firm Inefficiency," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(3), pages 715-23, August.
  3. Tzouvelekas, Vangelis & Pantzios, Christos J. & Fotopoulos, Christos, 2001. "Economic Efficiency In Organic Farming: Evidence From Cotton Farms In Viotia, Greece," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 33(01), April.
  4. Atkinson, Scott E & Cornwell, Christopher, 1994. "Estimation of Output and Input Technical Efficiency Using a Flexible Form and Panel Data," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(1), pages 245-55, February.
  5. repec:jaa:jagape:v:33:y:2001:i:1:p:35-48 is not listed on IDEAS
  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.
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  9. 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.
  10. Giannis Karagiannis & Christos J. Pantzios, 2002. "To Comply or not to Comply with Policy Regulations - the Case of Greek Cotton Growers: a Note," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(2), pages 345-351.
  11. Bravo-Ureta, Boris E. & Evenson, Robert E., 1994. "Efficiency in agricultural production: the case of peasant farmers in eastern Paraguay," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 10(1), January.
  12. Alfons Weersink & Calum G. Turvey & Abdulahi Godah, 1990. "Decomposition Measures of Technical Efficiency for Ontario Dairy Farms," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 38(3), pages 439-456, November.
  13. Stijn Reinhard & C.A. Knox Lovell & Geert Thijssen, 1999. "Econometric Estimation of Technical and Environmental Efficiency: An Application to Dutch Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 44-60.
  14. Giannis Karagiannis & Christos Pantzios, . "To comply or Not to Comply with Policy Regulations: The Case of Greek Cotton Growers," Working Papers 9817, University of Crete, Department of Economics.
  15. Kopp, Raymond J, 1981. "The Measurement of Productive Efficiency: A Reconsideration," The Quarterly Journal of Economics, MIT Press, vol. 96(3), pages 477-503, August.
  16. Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, vol. 38(3), pages 387-399, July.
  17. Kumbhakar, Subal C & Ghosh, Soumendra & McGuckin, J Thomas, 1991. "A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms," Journal of Business & Economic Statistics, American Statistical Association, vol. 9(3), pages 279-86, July.
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  19. Stevenson, Rodney E., 1980. "Likelihood functions for generalized stochastic frontier estimation," Journal of Econometrics, Elsevier, vol. 13(1), pages 57-66, May.
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