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Eficiencia técnica en la producción de café en Nicaragua: Un análisis de fronteras estocásticas
[Technical efficiency in coffee production: a stochastic frontier analysis for Nicaragua]

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  • Urbina, Jilber

Abstract

This article analyses the technical efficiency of coffee production in Nicaragua. We apply a stochastic frontier model to estimate the technical efficiency which reaches 60%; this means that Nicaraguan coffee producers have chances to improve the way they get things done. This level of efficiency prevents Nicaragua from capturing 340 million dollars for coffee exports. At the end of 2015, revenues from coffee exports represented 3.09 percent of gross domestic product (GDP), if 100 percent productive efficiency had been achieved, the relative importance of this item would have represented 5.77 percent of GDP. A counterfactual analysis shows the gains that would be derived from achieving technical efficiency.

Suggested Citation

  • Urbina, Jilber, 2017. "Eficiencia técnica en la producción de café en Nicaragua: Un análisis de fronteras estocásticas
    [Technical efficiency in coffee production: a stochastic frontier analysis for Nicaragua]
    ," MPRA Paper 82690, University Library of Munich, Germany, revised Sep 2017.
  • Handle: RePEc:pra:mprapa:82690
    as

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    File URL: https://mpra.ub.uni-muenchen.de/82690/1/MPRA_paper_82690.pdf
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    References listed on IDEAS

    as
    1. Abdulai, Awudu & Eberlin, Richard, 2001. "Technical efficiency during economic reform in Nicaragua: evidence from farm household survey data," Economic Systems, Elsevier, vol. 25(2), pages 113-125, June.
    2. Coelli, Tim & Fleming, Euan, 2004. "Diversification economies and specialisation efficiencies in a mixed food and coffee smallholder farming system in Papua New Guinea," Agricultural Economics, Blackwell, vol. 31(2-3), pages 229-239, December.
    3. Kalaitzandonakes, Nicholas G. & Dunn, Elizabeth G., 1995. "Technical Efficiency, Managerial Ability And Farmer Education In Guatemalan Corn Production: A Latent Variable Analysis," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 24(1), pages 1-11, April.
    4. Kennedy, Peter E, 1981. "Estimation with Correctly Interpreted Dummy Variables in Semilogarithmic Equations [The Interpretation of Dummy Variables in Semilogarithmic Equations]," American Economic Review, American Economic Association, vol. 71(4), pages 801-801, September.
    5. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
    6. Joachim Binam & Kalilou Sylla & Ibrahim Diarra & Gwendoline Nyambi, 2003. "Factors Affecting Technical Efficiency among Coffee Farmers in Côte d’Ivoire: Evidence from the Centre West Region," African Development Review, African Development Bank, vol. 15(1), pages 66-76.
    7. Kalaitzandonakes, N.G. & Dunn, E.G., 1995. "Technical Efficiency, Managerial Ability and Farmer Education in Guatemalan Corn Production: A Latent Variable Analysis," Agricultural and Resource Economics Review, Cambridge University Press, vol. 24(01), pages 36-46, April.
    8. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-475, June.
    9. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
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    More about this item

    Keywords

    technical efficiency; coffee; stochastic frontier model; Nicaragua;

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • C87 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Econometric Software
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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