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Algorithmizing of an efficiency estimation’s procedure in agricultural enterprises by the DEA method

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  • Dolhikh, Yana

Abstract

The purpose of the article is to develop an algorithm for estimating efficiency of agricultural enterprises by the DEA method and dynamics of change their efficiency. Research methods. In the research process have been used the following scientific methods: econometric method for checking quality of input and output parameters of the research objects; the DEA method for estimating level of net technical efficiency of the investigated agricultural enterprises. Research results. The theoretical and methodological aspects of determination of net technical efficiency of agricultural enterprises by DEA method have been analysed. The expediency of using VRS, namely input model for the estimation of net technical efficiency of production activity of agricultural enterprises, has been substantiated. Features of analysis of the change in their efficiency in relation to the previous period by the DEA method have been determined. Algorithm of estimation of net technical efficiency of agricultural enterprises and dynamics of its change has been offered. In the research proposed on basis of statistical information for 2016-2017, the method DEA has been used to define values of net technical efficiency of agricultural enterprises of Ukrainian regions in production and sale of grain crops. Dynamics of efficiency in the period between 2016 and 2017 has been analysed. According to calculations, during 2016 and 2017 a share of regions whose agricultural enterprises formed an effective front fell by 4.2% worth 37.5% in 2017. Thus, 62.5% of the regions can improve production performance by reducing the amount of resources used in production. The average value of the Malmqvist index calculated for 2016 and 2017 has indicated that an average amount of resources used in production of the same number of products has practically remained unchanged. Elements of scientific novelty. The algorithm of estimation of net technical efficiency of agricultural enterprises and their dynamics has been developed. Practical significance. Research results can be used to rank the agricultural enterprises of Ukraine by efficiency, for estimation dynamics in their effectiveness, identify causes of these changes. Tabl.: 5. Refs.: 17.

Suggested Citation

  • Dolhikh, Yana, 2018. "Algorithmizing of an efficiency estimation’s procedure in agricultural enterprises by the DEA method," Ekonomika, Journal for Economic Theory and Practice and Social Issues, Society of Economists Ekonomika, Nis, Serbia, vol. 25(10).
  • Handle: RePEc:ags:sereko:411588
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