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Efficiency in South African Agriculture: A Two-Stage Fuzzy Approach

Author

Listed:
  • Goodness C. Aye

    (Department of Economics, University of Pretoria, Pretoria)

  • Rangan Gupta

    (Department of Economics, University of Pretoria, Pretoria)

  • Peter Wanke

    (COPPEAD Graduate Business School, Federal University of Rio de Janeiro)

Abstract

This paper presents an efficiency assessment of agricultural production in South Africa from 1970-2014, using an integrated two-stage fuzzy approach. More precisely, Fuzzy TOPSIS is used to assess the relative efficiency of agriculture in South Africa over the course of the years. In the second stage, fuzzy regressions based on different rule-based systems are used to predict the impact of socio-economic and demographic variables on agricultural efficiency. They are confronted with the bootstrapped truncated regressions with conditional α-levels proposed in Wanke et al. (2016a). The results reveal that R&D, land quality, health expenditure-population growth ratio have a significant, positive impact on efficiency levels, besides the GINI index. Specifically in terms of accuracy, fuzzy regressions outperformed the bootstrapped truncated regressions with conditional α-levels. Policy implications are derived.

Suggested Citation

  • Goodness C. Aye & Rangan Gupta & Peter Wanke, 2016. "Efficiency in South African Agriculture: A Two-Stage Fuzzy Approach," Working Papers 201658, University of Pretoria, Department of Economics.
    • Handle: RePEc:pre:wpaper:201658
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    More about this item

    Keywords

    Agriculture; South Africa; Fuzzy TOPSIS; Fuzzy Regression; Performance;
    All these keywords.

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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