scholarly journals Economic Efficiency of Extensive and Intensive Shrimp Production under Conditions of Disease and Natural Disaster Risks in Khánh Hòa and Trà Vinh Provinces, Vietnam

2020 ◽  
Vol 12 (5) ◽  
pp. 2140 ◽  
Author(s):  
Kim Anh Thi Nguyen ◽  
Tram Anh Thi Nguyen ◽  
Curtis Jolly ◽  
Brice Merlin Nguelifack
Keyword(s):  
Economic Efficiency ◽  
Stocking Density ◽  
Stochastic Production Frontier ◽  
Frontier Analysis ◽  
Use Of Resources ◽  
Shrimp Production ◽  
Change Events ◽  
Alternative Power ◽  
The Government ◽  
Average Size

Uncertainty about efficiency and sustainability of shrimp production due to diseases and climatic events may prevent Vietnam from attaining US $10 million target from shrimp exports by 2025. We surveyed 120 and 159 shrimp farmers from Khánh Hòa and Trà Vinh provinces, respectively, to obtain information on their input use, production levels and the effects of diseases and climate change events on their farm profitability. Stochastic production frontier analysis (SFA) discovered that the number of workers, crops and seed costs positively influenced farmers’ profits, while cost of chemicals and labour negatively affected the profit of Khánh Hòa farmers. The number of workers and chemical costs positively affected profits in Trà Vinh, while cost of labour and energy, the number of crops and average stocking density negatively influenced farmer profit in Trà Vinh. Number of years of schooling, experience and average size of ponds positively influenced economic efficiency, while the number of ponds and climatic change events negatively influenced efficiency in Khánh Hòa province. Age and alternative power source positively affected economic efficiency, while disease prevalence affected efficiency of Trà Vinh. All farms practicing intensive or extensive shrimp production achieved 90% efficiency. The government should encourage the wise use of resources, high-quality seeds and a sensitive balance between intensive and extensive culture to sustainably attain its national production and export goals.

scholarly journals Economic Efficiency of Rice Farming:

2020 ◽  
Vol 58 (4) ◽  
Author(s):  
Kazeem Aboaba
Keyword(s):  
Economic Efficiency ◽  
Informal Education ◽  
Production Efficiency ◽  
Smallholder Farmers ◽  
Policy Issue ◽  
Rice Production ◽  
Frontier Analysis ◽  
Rice Farmers ◽  
Use Of Resources ◽  
Public Market

The future of agriculture is dependent on increase in the use of resources at disposal, it is therefore imperative that strategies to increase agricultural growth should be directed towards increasing efficiency of smallholder farming operations and resource utilization. This study examined the economic efficiency of rice production. Multistage sampling procedure was used to select 240 rice farmers with the aid of a structured questionnaire. Data collected were analyzed with descriptive techniques, Stochastic Frontier Analysis (SFA) and Tobit regression model. The SFA result revealed that input variables such as seed, herbicide and pesticide were positive and had significant effect on rice output. The rice farmers were able to maximize their output by 74% at lowest minimum cost possible. Furthermore, economic efficiency was positively influenced by age, level of education, membership of farmers association, access to public market and access to health facilities while household size, farming experience, bad road condition and distance to nearest market had negative effects. The study concluded that rice farmers were inefficient. Therefore, in order to raise rice production efficiency and improve the livelihood of smallholder farmers, farmers should attend formal and informal education as it is a key policy issue in the study area, farmers should strengthen the existing association structures and organize new farmer’s associations. Also, the local and regional governments were encouraged to provide good road networks, and public market that will enable farmers dispose their produce at attractive places and prices of their choice.

scholarly journals Analysis of technical efficiency of small-scale commercial farmers in Vhembe district

2021 ◽  
Vol 49 (1) ◽  
pp. 91-104
Author(s):  
M. Muzekenyi ◽  
J. Zuwarimwe ◽  
B.M. Kilonzo
Keyword(s):  
Technical Efficiency ◽  
Rural Areas ◽  
Stochastic Frontier Analysis ◽  
Limpopo Province ◽  
Small Scale ◽  
Stochastic Production Frontier ◽  
Frontier Analysis ◽  
Commercial Farming ◽  
The Government ◽  
Vhembe District

Small-scale commercial farmers are regarded as the strategic avenue to achieve meaningful development in rural areas of South Africa.  The government acknowledged that the inclusion of small-scale commercial farming in its development strategies. The paper aims to measure the efficiency of small-scale commercial farming enterprises in Vhembe District in Limpopo Province. Quantitative data were collected from 217 small-scale commercial farmers using structured questionnaires. The data were standardized using a farming enterprise budget system and analysed using the maximum likelihood and stochastic frontier analysis. The results revealed that aggregate output was positive and significantly influenced by age, education level, farm experience, farm labour, and government grants. However, the projected stochastic production frontier model combined with the efficiency parameters showed that labour and credit computed a negative effect on technical efficiency. The results indicated that the average level of technical efficiency ranged between 20% and 96% with a mean of 54%. This indicates that there is potential to increase production among small-scale commercial farmers in the study area by 46 % through efficient use of existing resources. As such, the local government should provide necessary supports such as formal agriculture training, access to credit and information to increase productivity.

scholarly journals Productivity and Competitiveness of Garlic Production in Pasuquin, Ilocos Norte, Philippines

2021 ◽  
Vol 18 (1) ◽  
pp. 50-63
Author(s):  
Ceptryl S. Mina ◽  
◽  
Salvador P. Catelo ◽  
Carolyn D. Jimenez ◽  
◽  
...  
Keyword(s):  
Stochastic Frontier Analysis ◽  
Group Membership ◽  
Stochastic Frontier ◽  
The Philippines ◽  
Farm Size ◽  
Cost Ratio ◽  
Frontier Analysis ◽  
Use Of Resources ◽  
The Government ◽  
Productivity And Competitiveness

A total of 124 garlic farmers were selected and interviewed to evaluate the productivity and competitiveness of garlic farming in Pasuquin, Ilocos Norte, Philippines. The Technical efficiency (TE) was estimated using a stochastic frontier analysis or SFA based on the Cobb-Douglas production functional form, while the competitiveness of local garlic production was determined based on the ratio between import parity price and domestic resource cost ratio. The mean TE was 81 percent while the estimated gamma value was 0.92. These values indicate that 92 percent of the variation in garlic output is due to inefficiency factors and that total garlic output can further be increased with efficient use of resources. The analysis further revealed that seed rate and insecticides were statistically significant production factors. The results also show that group membership, farm size, and distance to the farm-to-market road (FMR) were statistically significant. Inefficiency factors and distance to the FMR have positive relationships while group membership and farm size have negative relationships with the garlic output. Price and cost ratios show that garlic from Pasuquin, Ilocos Norte could not yet compete with imported garlic from China in 2018. However, simulations show that if the Philippines can increase its national average by at least 20 percent (4.08 mt/ ha), it can have a competitive advantage in garlic production. The results of the analyses highlight the need to revisit the output and input policies and programs of the government to increase the productivity and competitiveness of garlic farming in Ilocos Norte. These programs include investing in quality seed, joining farmers’ organizations, and providing better farming infrastructure.

scholarly journals Agricultural Productivity, Efficiency, and Rural Poverty in Irrigated Pakistan: A Stochastic Production Frontier Analysis

2003 ◽  
Vol 42 (3) ◽  
pp. 219-248 ◽  
Author(s):  
Munir Ahmad
Keyword(s):  
Rural Areas ◽  
Stochastic Frontier ◽  
Agricultural Productivity ◽  
Rural Poverty ◽  
Stochastic Production Frontier ◽  
Production Frontier ◽  
Frontier Analysis ◽  
Farm Productivity ◽  
The Poor ◽  
The Government

The main objective of this study is to estimate the input elasticities of production for poor and non-poor farms. The study estimates the stochastic frontier production function. The results show that the elasticities of production differ for poor and non-poor farms. The production elasticity of land is substantially higher on rich farms as compared to the farms belonging to poor farmers. This implies higher returns on investment on land by the rich farmers. The salinity/sodicity problem and the tail-end location of the plot adversely affect farm productivity and efficiency, particularly at the poor farms. Moreover, the average cost of the existence of technical inefficiencies is about 43 percent in terms of loss in output, with wide variations across farms ranging from 17 percent to 62 percent. The study further concludes that the least efficient group is not only operating far below the frontier but it also operates at the lower portion of the production frontier. Consequently, increasing access to the inputs would likely raise productivity and reduce poverty. The results imply that the land distribution using the notion of land reforms in favour of poor/small farmers in the presence of existing farm structure, rural infrastructure, and the weak farm-supporting institutions is not expected to raise farm productivity and reduce poverty among the poor farmers. The results call for a strong and active role of the government in close partnership with the private sector to initiate income-generating activities and inputs supply chains in the rural areas to break the nexus of poverty, land degradation, and low agricultural productivity.

scholarly journals EFISIENSI DAN KEBERLANJUTAN USAHA PURSE SEINE DI KABUPATEN MALUKU TENGAH DAN KOTA AMBON

2019 ◽  
Vol 3 (1) ◽  
pp. 38-51
Author(s):  
Margie Wattimury
Keyword(s):  
Technical Efficiency ◽  
Development Policy ◽  
Appropriate Technology ◽  
Purse Seine ◽  
Stochastic Production Frontier ◽  
Production Frontier ◽  
Frontier Analysis ◽  
Average Return ◽  
Use Of Resources ◽  
Stochastic Production

The level of purse seine business income is determined by the efficient allocation of resources for alternative capture fisheries activities. If resources are not used efficiently, there will be unexploited potential to increase income and create surpluses. Conversely, if resources are allocated efficiently, additional capture fisheries can be obtained through growth-oriented development efforts. Therefore, it is important to identify the efficient use of resources to determine the existence of purse seine fisheries. The results show that the estimated technical efficiency of the catch with SPF (Stochastic Production Frontier) analysis for purse seine fisheries in Central Maluku Regency and Ambon was influenced by the length and width of fishing gear, number of fishermen, amount of investment value and time of capture operations. The minimum value of catch technical efficiency is 0.10 and the maximum is 0.99 with an average 0.48. Factors influencing the technical inefficiency of fishing are the experience of captain and the education level of fishermen. Purse seine fishery business in Central Maluku Regency and Ambon City is feasible to be developed, showing by NPV value Rp. 30,514,684 / year, IRR 23.97% and B / C ratio 5.85. The average return on investment (PP) based on the analysis is 2.16 years, with BEP price Rp. 6,606 and BEP production 3,765 kgs. The main priorities of purse seine fisheries development policy strategy in Central Maluku Regency and Ambon are the development of assistance to fishing groups, the development of appropriate technology to handle catches, increase fisheries production, and infrastructures development.

The Pricing Of Petroleum Products In Pakistan

1982 ◽  
Vol 21 (3) ◽  
pp. 231-244
Author(s):  
Mia A M. De Kuijper
Keyword(s):  
Economic Efficiency ◽  
Minimum Cost ◽  
Petroleum Products ◽  
Social Benefits ◽  
The Government

In Pakistan the prices of petroleum products are set by the government, to raise revenues, stabilize prices, and achieve redistribution and social objectives. But in addition to these benefits, government31 taxes and subsidies for petroleum pro• ducts result in losses in economic efficiency through the misallocation of resources. How do the benefits compare with these losses? Are revenues raised in a manner that minimizes economic waste? Do the subsidies achieve equity or other social benefits at minimum cost?

Does a Diversified Crop Portfolio Make Farmers More Efficient? A Stochastic Production Frontier Analysis of Farm-level Data from Assam, India

2021 ◽  
pp. 097300522199758
Author(s):  
Raju Mandal ◽  
Shrabanti Maity
Keyword(s):  
Positive Impact ◽  
Northeast India ◽  
Government Support ◽  
Stochastic Production Frontier ◽  
Production Frontier ◽  
Frontier Analysis ◽  
Farm Level ◽  
Agriculture Sector ◽  
Level Data ◽  
Stochastic Production

The agriculture sector in India is beset with twin limitations of shrinking cultivable area and absence of major technological breakthroughs in the recent past. In such a situation, a judicious management of the farm in the form of adjustment in a crop portfolio can be quite useful to maximise output and minimise wastage of resources. This article seeks to examine whether a diversified crop portfolio makes the farmers more efficient using farm-level survey data collected from geographically diverse areas of Assam, a state in northeast India. The results of a stochastic production frontier analysis show that adoption of a diversified crop portfolio across crops and seasons makes the farmers more efficient in cultivation by helping them reduce weather-induced damages to crops and reap better returns from farming. This efficiency-enhancing effect of crop diversification is found to be heterogeneous among the regions. However, too much diversification reduces the efficiency of farmers. The results have important implications for Assam where floods cause extensive damage to crops every year. Moreover, access to extension services and government support are found to make the farmers more efficient. On the other hand, fixed-rent form of tenancy reduces efficiency of the farmers while household size has a positive impact on the same.

COMPARATIVE ALLOCATIVE EFFICIENCY AND PROFITABILITY OF DIFFERENT SCALES OF POULTRY-EGG PRODUCTION IN JOS METROPOLIS, PLATEAU STATE, NIGERIA

2021 ◽  
Vol 4 (4) ◽  
pp. 259-273
Author(s):  
Solomon T. Folorunso ◽  
T. Omosebi ◽  
D. A. Agbonika
Keyword(s):  
Egg Production ◽  
Large Scale ◽  
Allocative Efficiency ◽  
Sampling Technique ◽  
Primary Data ◽  
Small Scale ◽  
Stochastic Production Frontier ◽  
Stochastic Production ◽  
Plateau State ◽  
The Government

The study compared the allocative efficiency and profitability of poultry-egg farmers in Jos metropolis of Plateau State, Nigeria, across different scales. To select 143 respondents, a two-stage sampling technique was used.   Using well-structured questionnaire and interview schedules, primary data on socioeconomic variables were collected. Collected data were analyzed using budgetary technique and stochastic production frontier model. Result of allocative efficiency showed the following: The mean allocative efficiency of the small, medium and large scales was 0.68, 0.12 and 0.11 respectively; the minimum allocative efficiency for small, medium and large scales was 0.30, 0.10 and 0.10 respectively. The maximum allocative efficiency was 0.59, 0.18 and 0.11 respectively for small, medium and large scale farmers. The profitability result indicated that egg production for small, medium and large-scale farms was profitable in the study area with N675, 671.79, N4, 897,236.09 and N16, 327,633.66 per farmer. The rate of return on investment per bird was found to be 19.51%, 31.21% and 83.13% respectively for small, medium and large farm sizes. For small, medium and large-scale farmers respectively, the capital turnover per bird was N 1.20, N1.31 and N1.83. Also, the profitability indices for the small, medium and large scales are N0.16, N0.24 and N0.45. The study recommends that; Farmers should be advised to increase production from small scale to large scale through policies that will promote such, special intervention is needed from the government at all levels through farmers’ cooperatives in the area of inputs subsidy, price efficiency of the farmers could

An Efficiency Analysis of Micro Units in a Fragile Zone: A Panel Study of the Firms in J&K, India

2021 ◽  
pp. 097492922110448
Author(s):  
Javaid Iqbal Khan ◽  
Mehak Majeed ◽  
Saeed Owais Mushtaq
Keyword(s):  
Stochastic Frontier Analysis ◽  
Small And Medium Enterprises ◽  
Panel Study ◽  
Stochastic Frontier ◽  
Negative Relationship ◽  
Jel Classification ◽  
Tobit Regression ◽  
Jammu And Kashmir ◽  
Frontier Analysis ◽  
The Government

The micro, small and medium enterprises (MSMEs) are the backbone of the community development in the developing world. In the fragile and backward regions, it is the micro enterprise that is considered to be the engine of growth and development. Being labour-intensive and requiring lesser capital input, the micro unit start-ups demand lesser investment in plant and machinery, attracting more and more potential entrepreneurs. Over the time, such units gain experience and knowledge becoming more efficient. This article studies the firms located in the fragile and geographically remote region of Jammu and Kashmir. The article uses a panel of 15 years from 2002 to 2016 based on the Annual Survey of Industries data. Using the Stochastic Frontier Analysis, the article studies the MSMEs and the micro units. From the post-estimation, technical efficiency scores are attained for both MSMEs and the micro units. The results reveal that the micro units are more efficient than the MSMEs in general. Tobit regression is used to estimate the technical inefficiency model to determine the factors that contribute to the inefficiency present in the micro units. The results show that there is a negative relationship between the efficiency of the micro unit firms and the asset-liability ratio and the loan-liability ratio, while there is a positive relationship between the private ownership of the firm and the efficiency level. Age of the firm is considered separately to validate the ‘learning theory’ by Jovanovic. The article concludes by suggesting that the government must provide adequate boost and a big-push to the micro units in order to eradicate the widespread unemployment and fragility in the region. JEL Classification: F61, L25

Rent-seeking and firm value: Chinese evidence

2017 ◽  
Vol 20 (2) ◽  
pp. 239-272 ◽  
Author(s):  
Sihai Li ◽  
Huiying Wu ◽  
Xinfeng Jiang
Keyword(s):  
Firm Value ◽  
Production Efficiency ◽  
Corporate Philanthropy ◽  
Stock Exchange ◽  
Analytical Framework ◽  
Rent Seeking ◽  
Economic Benefits ◽  
Weak Institutions ◽  
Use Of Resources ◽  
The Government

AbstractWe examine whether engagement in rent-seeking improves firm value in China. Rent-seeking is defined as a firm's use of resources to establish a relationship with the government to obtain government-controlled resources. We incorporate political rents and associated costs into an analytical framework to examine the relationship between rent-seeking and firm value. Using a sample of non-state-owned firms listed on the Shenzhen Stock Exchange and the Shanghai Stock Exchange from 2007 to 2013, we find evidence of the presence of political rents in the form of government subsidies and evidence of associated costs in the forms of corporate philanthropy and excess management remuneration, which largely explains the insignificant relationship found between rent-seeking and firm value. Our further analysis shows that rent-seeking behavior of firms reduces production efficiency, providing additional evidence to support our thesis that engagement in rent-seeking does not enhance firm value in the Chinese context. In an economy with weak institutions, in particular with weak protection for shareholders, managers and politicians can become rent-seekers and take a considerable share of the economic benefits derived from rent-seeking.

Sign in / Sign up

Export Citation Format

Share Document