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Efficiency and productivity of the Mongolian livestock sector in an open economy


  • Enerelt Murakami

    () (University of Tokyo)


In the early 1990s, Mongolia initiated a transition from a command to a market economy; accordingly, significant changes took place in the livestock sector, including decollectivization, privatization, and greater exposure to international trade. Taking into account these changes, this study measures technical efficiency and its sources—including trade openness—of the Mongolian livestock sector by using a stochastic production frontier model on province-level panel data for the period 2001–2011. Furthermore, we measure and decompose changes in total factor productivity (TFP) by using the results from the stochastic frontier analysis and the Malmquist TFP index. Our results suggest that trade openness is one of the most important determinants increasing efficiency of the sector, in addition to herd size and access to electricity. TFP increased during 2001–2011, but at a decreasing rate. The technical change was progressive until 2009, but turned regressive afterwards, suggesting a pressing need for technical improvements in the sector.

Suggested Citation

  • Enerelt Murakami, 2013. "Efficiency and productivity of the Mongolian livestock sector in an open economy," Economics Bulletin, AccessEcon, vol. 33(4), pages 2617-2626.
  • Handle: RePEc:ebl:ecbull:eb-13-00635

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    References listed on IDEAS

    1. Dragan Miljkovic & Silvia H. Miranda & Saleem Shaik, 2013. "Trade openness and technical efficiency in Brazilian agriculture," Applied Economics Letters, Taylor & Francis Journals, vol. 20(2), pages 103-106, February.
    2. George E. Battese & Greg S. Corra, 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 21(3), pages 169-179, December.
    3. Miljkovic, Dragan & Shaik, Saleem, 2010. "The Impact of Trade Openness on Technical Efficiency in U.S. Agriculture," 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida 56334, Southern Agricultural Economics Association.
    4. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    5. Jarrett Hart & Dragan Miljkovic & Saleem Shaik, 2015. "The impact of trade openness on technical efficiency in the agricultural sector of the European Union," Applied Economics, Taylor & Francis Journals, vol. 47(12), pages 1230-1247, March.
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    More about this item


    Technical efficiency; productivity; livestock sector; Mongolia; stochastic frontier analysis;

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture


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