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Stochastic Production Frontiers and Decomposition of Output Growth: The case of citrus-growing farms in Tunisia

  • Dhehibi, Boubaker
  • Elloumi, Mohamed

The aim of this paper is to investigate the relative contribution of technical efficiency, technological change and increased input use to the output growth of the Tunisian citrus growing farms using a stochastic frontier production function approach applied to panel data for the period 2003-2005. Knowledge of the relative contribution of factors productivity and input use to output growth and improvements in technical efficiency is crucial to provide a comprehensive view of the state of the citrus producing sector in the country and help farm managers and policy makers draw appropriate policy measures. The proposed methodology is based on the use of a flexible translog functional form. Results indicate that technical efficiency of production in citrus producing farms investigated ranges from a minimum of 11.19% to a maximum of 96.82% with an average technical efficiency estimate of 49.97%. This suggests that citrus producers may increase their production by as much as 50.03% through more efficient use of production inputs. Furthermore, the production is characterized by increasing returns to scale, which on average was 1.057. Finally, investigation of the sources of production growth reveals that the contribution of total factor productivity is found to be the main source of that growth.

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Paper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 49953.

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Date of creation: 2009
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Handle: RePEc:ags:iaae09:49953
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  1. W, Y, 1995. "Productivity Growth, Technological Progress, and Technical Efficiency Change in China: A Three-Sector Analysis1," Journal of Comparative Economics, Elsevier, vol. 21(2), pages 207-229, October.
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  7. Giannis Karagiannis & Vangelis Tzouvelekas, . "Self-Dual Stochastic Production Frontiers and Decomposition of Output Growth: The Case of Olive Growing Farms in Greece," Working Papers 9913, University of Crete, Department of Economics.
  8. Pitt, Mark M. & Lee, Lung-Fei, 1981. "The measurement and sources of technical inefficiency in the Indonesian weaving industry," Journal of Development Economics, Elsevier, vol. 9(1), pages 43-64, August.
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  10. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 7(3-4), October.
  11. Ahmad, Munir & Boris E., Bravo-Ureta, 1995. "An econometric decomposition of dairy output growth," MPRA Paper 37678, University Library of Munich, Germany.
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