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Technical efficiency and decision to exit: evidence from the dairy farms in Sukabumi district, West Java, Indonesia

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  • Maman Setiawan

Abstract

This research investigates technical efficiency and its effect on the decision to exit of the dairy farms in Sukabumi district, West Java, Indonesia. Farm-level data obtained from survey are used to estimate the technical efficiency using a bootstrapped data envelopment analysis. The results show that dairy farms in Sukabumi are technically inefficient. The technical efficiency also has a negative effect on the decision to exit. This implies that the dairy farms with higher technical efficiency scores tend to have lower probabilities to exit from the business.

Suggested Citation

  • Maman Setiawan, 2019. "Technical efficiency and decision to exit: evidence from the dairy farms in Sukabumi district, West Java, Indonesia," World Review of Entrepreneurship, Management and Sustainable Development, Inderscience Enterprises Ltd, vol. 15(4), pages 428-440.
  • Handle: RePEc:ids:wremsd:v:15:y:2019:i:4:p:428-440
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