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Technical efficiency of the agricultural sector in Mexico: An overview of data envelopment analysis

  • Osvaldo U. Becerril-Torres

    ()

    (Universidad Autónoma del Estado de México, Facultad de Economía, Cerro de Coatepec s/n, Ciudad Universitaria, Toluca, Estado de México, C. P. 50120, México.)

  • Gabriela Rodríguez Licea

    ()

    (Universidad Autónoma del Estado de México, Facultad de Economía, Cerro de Coatepec s/n, Ciudad Universitaria, Toluca, Estado de México. C. P. 50120.)

  • Javier Jesús Ramírez Hernández

    ()

    (Universidad Autónoma del Estado de México, Centro Universitario UAEM Tenancingo, Tenancingo, Estado de México. C. P. 52400.)

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    The aim of this paper is to understand the agricultural sector in Mexico by looking at the way productive factors are being used and its technical efficiency. By means of data envelopment analysis, the empirical evidence shows that the northern states of the country are leaders in the sector, the north-central states determine the efficient production frontier and only eight of them operate efficiently under variable returns to scale, while 24 operate in the segment decreasing returns to scale. The overall efficiency of the states is 0.49, so there is the possibility of increasing output by 51% by making a better use of capital and labor.

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    Article provided by Instituto de Investigaciones Económicas y Sociales (IIES). Facultad de Ciencias Económicas y Sociales. Universidad de Los Andes. Mérida, Venezuela in its journal Economía.

    Volume (Year): 36 (2011)
    Issue (Month): 31 (January-june)
    Pages: 85-110

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    Handle: RePEc:ula:econom:v:36:y:2011:i:31:p:85-110
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    1. Ablanedo-Rosas, José Humberto & Gemoets, Leopoldo A., 2010. "Measuring the efficiency of Mexican airports," Journal of Air Transport Management, Elsevier, vol. 16(6), pages 343-345.
    2. Boisso, Dale & Grosskopf, Shawna & Hayes, Kathy, 2000. "Productivity and efficiency in the US: effects of business cycles and public capital," Regional Science and Urban Economics, Elsevier, vol. 30(6), pages 663-681, December.
    3. Fare, Rolf & Knox Lovell, C. A., 1978. "Measuring the technical efficiency of production," Journal of Economic Theory, Elsevier, vol. 19(1), pages 150-162, October.
    4. Joaquin Maudos & Jose Manuel Pastor & Lorenzo Serrano, 2003. "Human capital in OECD countries: Technical change, efficiency and productivity," International Review of Applied Economics, Taylor & Francis Journals, vol. 17(4), pages 419-435.
    5. Jens Kaüger & Uwe Cantner & Horst Hanusch, 2000. "Total factor productivity, the east Asian miracle, and the world production frontier," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 136(1), pages 111-136, March.
    6. Seiford, Lawrence M. & Thrall, Robert M., 1990. "Recent developments in DEA : The mathematical programming approach to frontier analysis," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 7-38.
    7. Griffin, Wade L. & Woodward, Richard T., 2011. "Determining policy-efficient management strategies in fisheries using data envelopment analysis (DEA)," Marine Policy, Elsevier, vol. 35(4), pages 496-507, July.
    8. Maudos, Joaquin & Pastor, Jose Manuel & Serrano, Lorenzo, 1999. "Total factor productivity measurement and human capital in OECD countries," Economics Letters, Elsevier, vol. 63(1), pages 39-44, April.
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