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Non-Parametric Analysis of Technical Efficiency: Factors Affecting Efficiency of West Java Rice Farms

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  • Frantisek Brazdik

Abstract

The objectives of this analysis are to evaluate the technical and scale efficiency of rice farms in West Java and to identify determinants affecting farms’ efficiency. Further, the farm size–productivity relation is investigated. Data Envelopment Analysis is used to estimate technical efficiency scores. Additionally, Tobit regression is used to explain the variation in the efficiency scores related to farm-specific factors. I conclude that farm size is one of the most important factors of farm’s technical efficiency and that high land fragmentation was the main source of the technical inefficiency during the final period of the intensification era, known as the Green Revolution.

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Bibliographic Info

Paper provided by The Center for Economic Research and Graduate Education - Economic Institute, Prague in its series CERGE-EI Working Papers with number wp286.

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Date of creation: Jan 2006
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Handle: RePEc:cer:papers:wp286

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Keywords: Rice farms; data envelopment analysis.;

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  1. Lilyan E. Fulginiti & Richard K. Perrin, 2005. "LDC Agriculture: Non-parametric Malmquist productivity indexes," Development and Comp Systems 0502025, EconWPA.
  2. Grigorian, David A. & Manole, Vlad, 2002. "Determinants of commercial bank performance in transition - an application of data envelopment analysis," Policy Research Working Paper Series 2850, The World Bank.
  3. Llewelyn, Richard V. & Williams, Jeffery R., 1996. "Nonparametric analysis of technical, pure technical, and scale efficiencies for food crop production in East Java, Indonesia," Agricultural Economics, Blackwell, Blackwell, vol. 15(2), pages 113-126, November.
  4. Seiford, Lawrence M. & Thrall, Robert M., 1990. "Recent developments in DEA : The mathematical programming approach to frontier analysis," Journal of Econometrics, Elsevier, Elsevier, vol. 46(1-2), pages 7-38.
  5. William C. Horrace & Peter Schmidt, 2002. "Confidence Statements for Efficiency Estimates from Stochastic Frontier Models," Econometrics, EconWPA 0206006, EconWPA.
  6. Viliam Druska & William C. Horrace, 2004. "Generalized Moments Estimation for Spatial Panel Data: Indonesian Rice Farming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 86(1), pages 185-198.
  7. Townsend, R.F. & Kirsten, J. & Vink, N., 1998. "Farm size, productivity and returns to scale in agriculture revisited: a case study of wine producers in South Africa," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 19(1-2), September.
  8. Barrett, Christopher B., 1996. "On price risk and the inverse farm size-productivity relationship," Journal of Development Economics, Elsevier, Elsevier, vol. 51(2), pages 193-215, December.
  9. Fare, Rolf & Grosskopf, Shawna, 1994. "Estimation of returns to scale using data envelopment analysis: A comment," European Journal of Operational Research, Elsevier, Elsevier, vol. 79(2), pages 379-382, December.
  10. Chieko Umetsu & Thamana Lekprichakul & Ujjayant Chakravorty, 2003. "Efficiency and Technical Change in the Philippine Rice Sector: A Malmquist Total Factor Productivity Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 85(4), pages 943-963.
  11. Subodh Kumar & R. Robert Russell, 2002. "Technological Change, Technological Catch-up, and Capital Deepening: Relative Contributions to Growth and Convergence," American Economic Review, American Economic Association, American Economic Association, vol. 92(3), pages 527-548, June.
  12. Basanta R. Dhungana & Peter L. Nuthall & Gilbert V. Nartea, 2004. "Measuring the economic inefficiency of Nepalese rice farms using data envelopment analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 347-369, 06.
  13. Abdul Wadud & Ben White, 2000. "Farm household efficiency in Bangladesh: a comparison of stochastic frontier and DEA methods," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 32(13), pages 1665-1673.
  14. 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, Foundation for the European Review of Agricultural Economics, vol. 23(1), pages 79-93.
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Cited by:
  1. Singh, Kehar & Dey, Madan Mohan & Rabbani, Abed G. & Sudhakaran, Pratheesh O. & Thapa, Ganesh, 2009. "Technical Efficiency of Freshwater Aquaculture and its Determinants in Tripura, India," Agricultural Economics Research Review, Agricultural Economics Research Association (India), Agricultural Economics Research Association (India), vol. 22(2).
  2. Watkins, K. Bradley & Hristovska, Tatjana & Mazzanti, Ralph & Wilson, Charles E., Jr., . "Measuring Technical, Allocative, and Economic Efficiency of Rice Production in Arkansas using Data Envelopment Analysis," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida, Southern Agricultural Economics Association 142962, Southern Agricultural Economics Association.
  3. Thibbotuwawa, Manoj & Mugera, Amin & White, Ben, 2013. "Production Efficiency and Technology Gap in Irrigated and Rain-fed Rice Farming Systems in Sri Lanka: Non Parametric Approach," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia, Australian Agricultural and Resource Economics Society 152181, Australian Agricultural and Resource Economics Society.
  4. Thibbotuwawa, Manoj & Mugera, Amin W. & White, Benedict, 2012. "A Non-Parametric Analysis of Rice Production Efficiency in Sri Lanka," 2012 Conference (56th), February 7-10, 2012, Freemantle, Australia, Australian Agricultural and Resource Economics Society 124423, Australian Agricultural and Resource Economics Society.

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