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Regional differences in technical efficiency and technological gap of Norwegian dairy farms: a stochastic meta-frontier model

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  • Habtamu Alem
  • Gudbrand Lien
  • J. Brian Hardaker
  • Atle Guttormsen

Abstract

This paper compares technical efficiencies (TEs) and technological gap ratios (TGRs) for dairy farms in regions of Norway, accounting for differences in working environments. We used the state-of-the-art stochastic meta-frontier approach to estimate TEs and TGRs to account for regional heterogeneity, and the ‘true’ random-effect model to account for farm effects. The dataset used was farm-level balanced panel data for 24 years (1992–2014), with 5442 observations from 731 dairy farms. The results of the analysis provide empirical evidence of small regional differences in TEs, TGRs, and input use. Furthermore, the results may provide support for the more regionally specific agricultural policy, in terms of support schemes and structural regulations.

Suggested Citation

  • Habtamu Alem & Gudbrand Lien & J. Brian Hardaker & Atle Guttormsen, 2019. "Regional differences in technical efficiency and technological gap of Norwegian dairy farms: a stochastic meta-frontier model," Applied Economics, Taylor & Francis Journals, vol. 51(4), pages 409-421, January.
    • Handle: RePEc:taf:applec:v:51:y:2019:i:4:p:409-421
    DOI: 10.1080/00036846.2018.1502867
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    8. Tleubayev, Alisher & Bobojonov, Ihtiyor & Götz, Linde, 2022. "Agricultural policies and technical efficiency of wheat production in Kazakhstan and Russia: Evidence from a stochastic frontier approach," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 54(3), pages 407-421.
    9. Zdeňka Náglová & Tamara Rudinskaya, 2021. "Factors Influencing Technical Efficiency in the EU Dairy Farms," Agriculture, MDPI, vol. 11(11), pages 1-14, November.
    10. Dogba, Kollie B. & Kosura, Willis Oluoch & Chumo, Chepchumba, 2021. "Stochastic meta-frontier function analysis of the regional efficiency and technology gap ratios (TGRs) of small-scale cassava producers in Liberia," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 16(1), March.
    11. Habtamu Alem, 2023. "The role of green total factor productivity to farm-level performance: evidence from Norwegian dairy farms," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-16, December.
    12. Habtamu Alem, 2021. "The Role of Technical Efficiency Achieving Sustainable Development: A Dynamic Analysis of Norwegian Dairy Farms," Sustainability, MDPI, vol. 13(4), pages 1-11, February.
    13. Tanko, Mohammed & Ismaila, Salifu, 2021. "How culture and religion influence the agriculture technology gap in Northern Ghana," World Development Perspectives, Elsevier, vol. 22(C).
    14. Elizabeth Ahikiriza & Jef Meensel & Xavier Gellynck & Ludwig Lauwers, 2021. "Heterogeneity in frontier analysis: does it matter for benchmarking farms?," Journal of Productivity Analysis, Springer, vol. 56(2), pages 69-84, December.
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    16. Owusu, Rebecca & Kwadzo, Moses & Ghartey, William, 2022. "Regional Productivity Differential and Technology Gap In African Agriculture: A Stochastic Metafrontier Approach," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 10(1), January.
    17. Lungelo P. Cele & Thia Hennessy & Fiona Thorne, 2023. "Regional technical efficiency rankings and their determinants in the Irish dairy industry: A stochastic meta‐frontier analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 727-743, July.
    18. Runqi Lun & Qiyou Luo & Mingjie Gao & Guojing Li & Tengda Wei, 2023. "How to Break the Bottleneck of Potato Production Sustainable Growth—A Survey from Potato Main Producing Areas in China," Sustainability, MDPI, vol. 15(16), pages 1-16, August.
    19. Alem, Habtamu, 2020. "Performance of the Norwegian dairy farms: A dynamic stochastic approach," Research in Economics, Elsevier, vol. 74(3), pages 263-271.
    20. Abebayehu Girma Geffersa & Frank Wogbe Agbola & Amir Mahmood, 2022. "Modelling technical efficiency and technology gap in smallholder maize sector in Ethiopia: accounting for farm heterogeneity," Applied Economics, Taylor & Francis Journals, vol. 54(5), pages 506-521, January.
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