IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v36y2004i11p1233-1243.html
   My bibliography  Save this article

Assessing the impact of economic liberalization across countries: a comparison of dairy industry efficiency in Canada and the USA

Author

Listed:
  • Morteza Haghiri
  • James Nolan
  • Kien Tran

Abstract

This paper examines and compares the technical efficiency measures of Ontario and New York dairy producers for the period 1992 to 1998. A nonparametric stochastic frontier model is introduced to estimate technical efficiency. The backfitting algorithm of Breiman and Friedman is used to estimate the frontier. Empirical results indicate that during the period of study, New York dairy farmers produced milk more efficiently than Ontario dairy producers, but the magnitude of the difference was small. The estimated mean technical efficiency for the former group is 0.602 as compared to 0.532 for the latter. The results also indicated that over time, dairy farms in both regions improved their level of technical efficiency. Furthermore, no correlation was found between farm size and estimated technical efficiency.

Suggested Citation

  • Morteza Haghiri & James Nolan & Kien Tran, 2004. "Assessing the impact of economic liberalization across countries: a comparison of dairy industry efficiency in Canada and the USA," Applied Economics, Taylor & Francis Journals, vol. 36(11), pages 1233-1243.
    • Handle: RePEc:taf:applec:v:36:y:2004:i:11:p:1233-1243
    DOI: 10.1080/0003684042000247406
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000247406
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/0003684042000247406?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tauer, Loren W. & Belbase, Krishna P., 1987. "Technical Efficiency Of New York Dairy Farms," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 16(1), pages 1-7, April.
    2. Catherine Benjamin & Alexandre Gohin & Hervé Guyomard, 1999. "The Future of European Union Dairy Policy," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 47(5), pages 91-101, December.
    3. Catherine Benjamin & Alexandre Gohin & Hervé Guyomard, 1999. "The future of European Union dairy policy," Post-Print hal-01931505, HAL.
    4. Chen, R. & Härdle, Wolfgang & Linton, O. B. & Severance-Lossin, E., 1995. "Nonparametric Estimation of Additive Seperable Regression Models," SFB 373 Discussion Papers 1995,50, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    5. KNEIP, Alois & SIMAR, Léopold, 1995. "A General Framework for Frontier Estimation with Panel Data," LIDAM Discussion Papers CORE 1995060, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. Dominique Deprins & Léopold Simar & Henry Tulkens, 2006. "Measuring Labor-Efficiency in Post Offices," Springer Books, in: Parkash Chander & Jacques Drèze & C. Knox Lovell & Jack Mintz (ed.), Public goods, environmental externalities and fiscal competition, chapter 0, pages 285-309, Springer.
    7. Boris E. Bravo-Ureta & Laszlo Rieger, 1991. "Dairy Farm Efficiency Measurement Using Stochastic Frontiers and Neoclassical Duality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 421-428.
    8. Schmidt, Peter & Sickles, Robin C, 1984. "Production Frontiers and Panel Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 2(4), pages 367-374, October.
    9. repec:cor:louvrp:-571 is not listed on IDEAS
    10. Konstantinos Giannakas & Kien C. Tran & Vangelis Tzouvelekas, 2003. "On the choice of functional form in stochastic frontier modeling," Empirical Economics, Springer, vol. 28(1), pages 75-100, January.
    11. Ackerman, Karen Z. & Smith, Mark & Suarez, Nydia R., 1995. "Agricultural Export Programs: Background for 1995 Farm Legislation," Agricultural Economic Reports 262013, United States Department of Agriculture, Economic Research Service.
    12. Kumbhakar, Subal C & Biswas, Basudeb & Bailey, DeeVon, 1989. "A Study of Economic Efficiency of Utah Dairy Farmers: A System Approach," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 595-604, November.
    13. B. E. Bravo‐Ureta & L. Rieger, 1990. "Alternative Production Frontier Methodologies And Dairy Farm Efficiency," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(2), pages 215-226, May.
    14. L. Martin Cloutier & Robin Rowley, 1993. "Relative Technical Efficiency: Data Envelopment Analysis and Quebec's Dairy Farms," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 41(2), pages 169-176, July.
    15. Kopp, Raymond J. & Diewert, W. Erwin, 1982. "The decomposition of frontier cost function deviations into measures of technical and allocative efficiency," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 319-331, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Elskamp, Rebecca & Hailu, Getu, 2013. "Do Efficient Dairy Producers Purchase Quota?," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149678, Agricultural and Applied Economics Association.
    2. Alexander Bilson Darku & Stavroula Malla & Kien C. Tran, 2016. "Sources and Measurement of Agricultural Productivity and Efficiency in Canadian Provinces: Crops and Livestock," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(1), pages 49-70, March.
    3. Alphonse Singbo & Bruno Larue, 2016. "Scale Economies, Technical Efficiency, and the Sources of Total Factor Productivity Growth of Quebec Dairy Farms," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(2), pages 339-363, June.
    4. Jean‐Paul Chavas & Doris Läpple & Bradford Barham & Emma Dillon, 2022. "An economic analysis of production efficiency: Evidence from Irish farms," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(2), pages 153-173, June.
    5. Morteza Haghiri, 2013. "Applied Nonparametric Regression Analysis: the Choice of Generalized Additive Models," Review of Economics & Finance, Better Advances Press, Canada, vol. 3, pages 25-34, February.
    6. Ruhul Salim & Amzad Hossain, 2006. "Market deregulation, trade liberalization and productive efficiency in Bangladesh agriculture: an empirical analysis," Applied Economics, Taylor & Francis Journals, vol. 38(21), pages 2567-2580.
    7. Azza El-Shinnawy, 2010. "Trends of Total Factor Productivity in Egypt’s Pharmaceutical Industry: Evidence from the Nonparametric Malmquist Index Approach," Working Papers 524, Economic Research Forum, revised 05 Jan 2010.
    8. Johannes Sauer, 2011. "The Empirical Identification of Heterogenous Technologies and Technical Change," Post-Print hal-00768585, HAL.
    9. Johannes Sauer & Catherine J. Morrison Paul, 2013. "The empirical identification of heterogeneous technologies and technical change," Applied Economics, Taylor & Francis Journals, vol. 45(11), pages 1461-1479, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tim J. Coelli, 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 219-245, December.
    2. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
    3. Ahmad, Munir & Boris E., Bravo-Ureta, 1996. "Technical efficiency measures for dairy farms using panel data: a comparison of alternative model specifications," MPRA Paper 37703, University Library of Munich, Germany.
    4. Bravo-Ureta, Boris E. & Pinheiro, Antonio E., 1993. "Efficiency Analysis Of Developing Country Agriculture: A Review Of The Frontier Function Literature," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 22(1), pages 1-14, April.
    5. Tzouvelekas, Vangelis & Pantzios, Christos J. & Fotopoulos, Christos, 2001. "Economic Efficiency in Organic Farming: Evidence from Cotton Farms in Viotia, Greece," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 33(1), pages 35-48, April.
    6. Bravo-Ureta, Boris E. & Rieger, Laszlo & Quiroga, Ricardo E., 1990. "Fixed Effects and Stochastic Frontier Estimates of Firm-Level Technical Efficiency," 1990 Annual meeting, August 5-8, Vancouver, Canada 270867, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Richards, Timothy J. & Jeffrey, Scott R., 2000. "Efficiency And Economic Performance: An Application Of The Mimic Model," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(1), pages 1-20, July.
    8. Pierani, Pierpaolo & Rizzi, Pier Luigi, 2003. "Technology and efficiency in a panel of Italian dairy farms: an SGM restricted cost function approach," Agricultural Economics, Blackwell, vol. 29(2), pages 195-209, October.
    9. Bellio, Ruggero & Grassetti, Luca, 2011. "Semiparametric stochastic frontier models for clustered data," Computational Statistics & Data Analysis, Elsevier, vol. 55(1), pages 71-83, January.
    10. Areal, Francisco J. & Tiffin, Richard & Balcombe, Kelvin G., 2012. "Provision of environmental output within a multi-output distance function approach," Ecological Economics, Elsevier, vol. 78(C), pages 47-54.
    11. Zhu, Xueqin & Milán Demeter, Róbert, 2012. "Technical efficiency and productivity differentials of dairy farms in three EU countries: the role of CAP subsidies," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 13(1), pages 1-27.
    12. Luis R. Murillo‐Zamorano, 2004. "Economic Efficiency and Frontier Techniques," Journal of Economic Surveys, Wiley Blackwell, vol. 18(1), pages 33-77, February.
    13. Timo Kuosmanen & Mika Kortelainen, 2012. "Stochastic non-smooth envelopment of data: semi-parametric frontier estimation subject to shape constraints," Journal of Productivity Analysis, Springer, vol. 38(1), pages 11-28, August.
    14. Munir Ahmad & Boris E. Bravo-Ureta, 1995. "An Econometric Decomposition of Dairy Output Growth," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(4), pages 914-921.
    15. Subal C. Kumbhakar & Christopher F. Parmeter & Valentin Zelenyuk, 2022. "Stochastic Frontier Analysis: Foundations and Advances I," Springer Books, in: Subhash C. Ray & Robert G. Chambers & Subal C. Kumbhakar (ed.), Handbook of Production Economics, chapter 8, pages 331-370, Springer.
    16. Guy Nkamleu, 2004. "Productivity Growth, Technical Progress and Efficiency Change in African Agriculture," African Development Review, African Development Bank, vol. 16(1), pages 203-222.
    17. Nguyen Khac Minh & Nguyen Viet Hung & Pham Van Khanh & Ha Quynh Hoa, 2014. "Do Direct Foreign Investments Increase Efficiency Convergence at Firm Level? The Case of Vietnam, 2000-2011," International Journal of Business and Social Research, LAR Center Press, vol. 4(7), pages 109-119, July.
    18. W. Cooper & C. Lovell, 2011. "History lessons," Journal of Productivity Analysis, Springer, vol. 36(2), pages 193-200, October.
    19. Nguyen Khac Minh & Nguyen Viet Hung & Pham Van Khanh & Ha Quynh Hoa, 2014. "Do Direct Foreign Investments Increase Efficiency Convergence at Firm Level? The Case of Vietnam, 2000-2011," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 4(7), pages 109-119, July.
    20. Musemwa, L. & Mushunje, Abbyssinia & Muchenje, V. & Aghdasi, F. & Zhou, L., 2013. "Factors affecting efficiency of field crop production among resettled farmers in Zimbabwe," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161443, African Association of Agricultural Economists (AAAE).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:36:y:2004:i:11:p:1233-1243. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.