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Determinants Of Technical Efficiency In Agriculture And Cattle Ranching: A Spatial Analysis For The Brazilian Amazon

  • Danilo Camargo Igliori

The determinants of technical efficiency in agriculture and cattle ranching are closely related with the debate involving the conservation-development trade-off in the Brazilian Amazon. Concerned with balancing development and environmental conservation, policy makers and academics have emphasized the importance of choosing ways of selecting areas where land use restrictions would be established. In order to understand the relationship between spatial patterns of deforestation and the associated distribution and characteristics of economic activity, issues regarding technical efficiency are clearly important. This paper aims to identify the socio-economic and environmental determinants of technical efficiency in agriculture and cattle ranching in the Brazilian Amazon emphasizing their relationship with spatial processes of deforestation and development. The study is structured in two parts. The first part is concerned with measuring technical efficiency for agriculture and cattle ranching in each geographical unit focusing on the production relationship between inputs and outputs. The second one focuses on the variation in the efficiency measure explained by exogenous factors and includes the spatial analysis. We adopt the model proposed by Battese and Coelli (1995) where the production function and the exogenous effects influencing technical efficiency are estimated simultaneously.

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Paper provided by ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics] in its series Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33th Brazilian Economics Meeting] with number 137.

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Date of creation: 2005
Date of revision:
Handle: RePEc:anp:en2005:137
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  1. Chomitz, Kenneth M. & Thomas, Timothy S., 2001. "Geographic patterns of land use and land intensity in the Brazilian Amazon," Policy Research Working Paper Series 2687, The World Bank.
  2. Sherlund, Shane M. & Barrett, Christopher B. & Adesina, Akinwumi A., 2002. "Smallholder technical efficiency controlling for environmental production conditions," Journal of Development Economics, Elsevier, vol. 69(1), pages 85-101, October.
  3. 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.
  4. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
  5. Loretta J. Mester, 1992. "Efficiency in the savings and loan industry," Working Papers 92-14, Federal Reserve Bank of Philadelphia.
  6. Reifschneider, David & Stevenson, Rodney, 1991. "Systematic Departures from the Frontier: A Framework for the Analysis of Firm Inefficiency," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(3), pages 715-23, August.
  7. Nelson, Gerald C., 2002. "Introduction to the special issue on spatial analysis for agricultural economists," Agricultural Economics, Blackwell, vol. 27(3), pages 197-200, November.
  8. Coelli, Tim J., 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(03), December.
  9. Otsuki, Tsunehiro & Reis, Eustaquio Jose, 1999. "The Implication Of Property Rights For Joint Agriculture-Timber Productivity In The Brazilian Amazon," 1999 Annual meeting, August 8-11, Nashville, TN 21617, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  10. Mertens, B. & Poccard-Chapuis, R. & Piketty, M.G. & Lacques, A.E. & Venturieri, A., 2002. "Crossing spatial analyses and livestock economics to understand deforestation processes in the Brazilian Amazon: the case of Sao Felix do Xingu in South Para," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 27(3), November.
  11. 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), April.
  12. van der Vlist, Arno & Withagen, Cees & Folmer, Henk, 2005. "Testing Porter's Hypothesis: A Stochastic Frontier Panel Data Analysis of Dutch Horticulture," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24641, European Association of Agricultural Economists.
  13. Loretta J. Mester, 1996. "Measuring efficiency at U.S. banks: accounting for heterogeneity is important," Working Papers 96-11, Federal Reserve Bank of Philadelphia.
  14. Florax, R. & Folmer, H., 1991. "Specification and Estimation of Spatial Linear Regression Models: Monte Carlo Evaluation of Pre-Test Estimator," Mansholt Working Papers 1991-4, Wageningen University, Mansholt Graduate School of Social Sciences.
  15. Eustaquio Reis & Diana Weinhold, 2004. "Land Use and Transportation Costs in the Brazilian Amazon," Urban/Regional 0410003, EconWPA.
  16. Pascual, Unai, 2005. "Land use intensification potential in slash-and-burn farming through improvements in technical efficiency," Ecological Economics, Elsevier, vol. 52(4), pages 497-511, March.
  17. Kumbhakar, Subal C & Ghosh, Soumendra & McGuckin, J Thomas, 1991. "A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms," Journal of Business & Economic Statistics, American Statistical Association, vol. 9(3), pages 279-86, July.
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