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Drivers of Farm Efficiency in Turkey: A Stochastic Frontier Analysis

Author

Listed:
  • Hasan Dudu

    () (European Commission, Joint Research Center, Institute for Prospective Technological Studies)

  • Erol H. Cakmak

    (TED University, Department of Economics)

  • Nadir Ocal

    (Middle East Technical University, Department of Economics)

Abstract

This paper analyzes the efficiency structure of Turkish agriculture in farm household level by using various models of stochastic frontier analysis. A household level survey conducted in 2002 and 2004 is used in the analysis. Firstly, an efficient production frontier is estimated by a panel data model. By using these estimates, relative importance of inputs and their interaction with various farm characteristics are inspected. The parameters of production frontier show that agricultural production is crucially dependent on land and there is an excessive employment of labor. Secondly, the efficiency scores are estimated at farm household level. The results are reported according to NUTS-I regional classification and many other farm specific characteristics. The western parts of the country are found to be relatively more efficient and there is a high deviation in the mean efficiencies of different regions. There is an increase in mean efficiencies of all regions from 2002 to 2004. Besides, crop patterns, farm size, education level of household chief and irrigation are found to be effective on efficiency.

Suggested Citation

  • Hasan Dudu & Erol H. Cakmak & Nadir Ocal, 2015. "Drivers of Farm Efficiency in Turkey: A Stochastic Frontier Analysis," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 1(1), pages 45-63, June.
  • Handle: RePEc:ana:journl:v:1:y:2015:i:1:p:45-63
    DOI: 10.22440/EconWorld.J.2015.1.1.HD.0005
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    File URL: http://journal.econworld.org/index.php/econworld/article/download/5/1
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    Keywords

    Technical Efficiency; Farm Efficiency; Turkish Agriculture; Stochastic Frontier Analysis;

    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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