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Productivity Growth and Technical Efficiency Changes in Rice Farms: An Input-Oriented Study Using Biosolid

In: Handbook on Data Envelopment Analysis in Business, Finance, and Sustainability Recent Trends and Developments

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  • Carlos Alberto Zúniga-González

Abstract

This chapter focuses on evaluating the efficiency of applying Biosolid Xolotlan (BX) on farms in western Nicaragua as a bio-input business. It measures efficiency and productivity for each farm engaged in bioinput operations. The data collected for the measurement process were gathered from each farm. The evaluation employed the DEA approach alongside the Malmquist index methodology to assess impact, while stochastic frontier methods were utilized to estimate econometric frontiers. The results indicate that the contribution of wage laborers (Li) and investment cost (Ki) positively influences farms that implemented BX. Additionally, the findings reveal an average technical efficiency of 48% in BX utilization, which had a positive impact on implementing farms. Farms that achieved higher production levels (frontiers) stood out: farm 9 at 88%, farm 5 at 86%, and farm 3 at 79%. Ultimately, it was discovered that the investment made by producers to enhance soil nutrient levels using BX for bioremediation of degraded soils significantly improved production efficiency.

Suggested Citation

  • Carlos Alberto Zúniga-González, 2024. "Productivity Growth and Technical Efficiency Changes in Rice Farms: An Input-Oriented Study Using Biosolid," World Scientific Book Chapters, in: Sabri Boubaker & Thanh Ngo (ed.), Handbook on Data Envelopment Analysis in Business, Finance, and Sustainability Recent Trends and Developments, chapter 19, pages 551-574, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9781800615786_0019
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    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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