scholarly journals TECHNICAL EFFICIENCY ANALYSIS IN INDONESIAN FISHERY PROCESSING INDUSTRY: A CASE OF FISHERY CANNED PRODUCT FIRMS

2019 ◽  
Vol 9 (1) ◽  
pp. 53
Author(s):  
Munawar Asikin ◽  
Arief Daryanto ◽  
Machfud . ◽  
Subagio Dwijosumono

This study aims to analyze technical efficiency and evaluate the effect of some sources of inefficiency in the Indonesian fishery canned firms during the period of 1990-2015. We calculate technical efficiency using the Stochastic Frontier Analysis (SFA) method with Time Varying Decay. The average of technical efficiency in this industry during the period of 1990-2015 was only 57%. It indicates that firms in this industry still encounter a problem in allocating the resources in efficient manner.  However, during the period of 1994-2015, the efficiency in the Indonesian fishery canned industry has declined. We also employed the Ordinary Least Square (OLS) method to evaluate the sources of inefficiency. The results showed that eight variables affected to the efficiency in this industry, thereby it will reduce fishery product competitiveness in the future

2017 ◽  
Vol 9 (2) ◽  
pp. 658-662
Author(s):  
R. Vasanthi ◽  
B. Sivasankari ◽  
J. Gitanjali

A comparative study between Stochastic frontier production function and corrected Ordinary Least Square (OLS) were estimated to determine technical efficiency in paddy production. Further, the study has assessed the effect of farm specific socio economic factors affecting the technical efficiency. This study was conducted in Cauvery delta zone of seven taluks about canal irrigation. The number of farmers in canal irrigated region about 109 from seven taluks is considered. The data were obtained from the cost of cultivation scheme of Tamil Nadu centre. The results of Cobb Douglas stochastic production function indicated that fertilizer, seed, pesticide and machine hours significantly influenced yield of paddy. The results also indicated that it will be highly profitable to increase the use of seed, and need to rationalize the labour use and pesticide usage. The effect of qualitative variable namely age and education of the farmer would indicate that the older farmers technical efficiency become less compared to the younger farmer, and also implying that investments on human capital take away their participation from agriculture. As a comparative study in general, COLS produced the lowest mean technical efficiency with 85 percent while the Stochastic frontier analysis produced the highest mean technical efficiency with 90 per cent.


2017 ◽  
Vol 23 (6) ◽  
pp. 787-795 ◽  
Author(s):  
Joanicjusz NAZARKO ◽  
Ewa CHODAKOWSKA

The primary problems pertaining to productivity or – more precisely – efficiency are: how to define it and how to measure it. This article studies technical efficiency in Stochastic Frontier Analysis (SFA) – the input-oriented frontier model – in the construction industry and compares it with Data Envelopment Analysis (DEA) results. The models ex­plored in this paper were constructed on the basis of two outputs and personnel cost as an input. The research sample consisted of European countries. The aim was to determine whether there are substantial differences in estimation of ef­ficiency derived from those two alternative frontier approaches. The comparison of results according to the models may translate into higher reliability of the undertaken labour efficiency analysis in construction and its conclusions. Although the results are not characterized by high compatibility, the conducted analysis indicated the most attractive countries taking into account labour cost to profit and turnover ratios of enterprises. One of the determinants which should not be ignored when analysing the labour efficiency is the level of development of a country; however, it is not the sole factor affecting the efficiency of the sector.


2012 ◽  
Vol 52 (No. 8) ◽  
pp. 368-378
Author(s):  
S. Covaci ◽  
Z. Sojková

This study has focused on two main tasks: verifying the suitability of using stochastic frontier analysis on a transforming sector, and providing empirical evidence to explain the technical efficiency structure among farms in the time period 2000–2004. Two stochastic frontier model specifications were employed, the Battese and Coelli 1992 specification with the systematically time-varying inefficiency effect, and the Battese and Coelli 1995 one stage specification explaining technical inefficiency based on farm-specific variables. Our analyses were carried out at the commodity level, wheat production, where the accessibility of a data panel allowed us to enrich the calculation of the level of technical efficiency by the analysis of productivity changes within the chosen period of time, supports this idea as well. 


2021 ◽  
pp. 1-9
Author(s):  
Muhammad Fahad Irfan ◽  
Muhammad Umer Afzal ◽  
Kaif Matloob ◽  
Irfan Ahmad Baig

The present study aims to estimate the possible effects of credit on production of wheat crop in Chakwal. The research was based on primary data gathered from 120 farmers, selected by using random sampling technique belonging to two tehsils i.e. Talagang and Chakwal. SFA (Stochastic Frontier Analysis) model was adapted to analyze the data and the results show the mean technical efficiency of the wheat crop was 82 percent for borrowers and 76 percent for non-borrowers. The results proposed that the technical efficiency of wheat growers can be increased by increasing loan disbursement in the area.


SAGE Open ◽  
2021 ◽  
Vol 11 (4) ◽  
pp. 215824402110581
Author(s):  
Koangsung Choi ◽  
Chung Choe ◽  
Daeho Lee

This study examines the impact of employing temporary workers on technical efficiency (TE) by employing stochastic frontier analysis (SFA) and meta-frontier analysis (MFA). These two statistical methods yield slightly different, yet empirically meaningful, results. SFA—the more conventional methodology for conducting efficiency analysis—confirms that firms with temporary workers show a somewhat lower level of TE; while MFA, which allows a comparison of TE across groups with heterogeneous technologies, reveals that firms hiring temporary workers are technologically less efficient and have a more pronounced relative gap in efficiency. With the application of MFA, it was observed that firms hiring only temporary workers come farther to the meta-frontier than their counterparts.


Media Trend ◽  
2021 ◽  
Vol 16 (2) ◽  
pp. 189-202
Author(s):  
Widita Pambudi Wijaya ◽  
Dyah Wulan Sari ◽  
Wenny Restikasari

This study aims to investigate the effect of market concentration on industrial efficiency. Large and medium processing industry data in East Java and the Stochastic Frontier Analysis (SFA) approach were used to investigate the impact of market concentration on the efficiency of the industry. The results of the study indicate that market concentration in the processing industry in East Java leads to oligopoly. The variable of firm size (FSize) and the level of market concentration (CR4) have a negative effect on the level of technical efficiency of large and medium industries in East Java.


2017 ◽  
Vol 7 (4) ◽  
pp. 27 ◽  
Author(s):  
Martin Paul Jr. Tabe-Ojong ◽  
Ernest L. Molua

Agriculture is the mainstay of Cameroon’s economy as it serves the purposes of food, livelihood and employment. Nevertheless, the country’s agriculture is plagued by low productivity and inefficiency in production. One of the main reasons for low productivity is the inability of farmers to fully exploit available technologies and production techniques. An important research question that comes to mind is, what are the major factors that hinder the technical efficiency of smallholder farmers? This study thus aimed to determine the level of technical efficiency in the production of tomato in smallholder farms, relying on primary data collected using a structured survey instrument administered to 80 tomato farmers in the Buea municipality of Cameroon. Data was analyzed using descriptive statistics and a stochastic frontier analysis method in the Cobb-Douglas production function. The STATA.14 software was used to obtain both stochastic frontier estimates and the determinants of technical efficiency. The results indicate that farmers are not fully technically efficient with a mean technical efficiency score of 0.68 with one farmer operating on the frontier. The study also revealed that most of the farmers irrespective of the size of the holdings have shown technical inefficiency problems. The older farmers were observed with the best measures of technical efficiency. Education, age and the adoption and practice of agronomic techniques had a positive and significant influence on technical efficiency while the nearest distance to the extension agent had a rather negative influence on technical efficiency. The input-output relationship showed that the area of tomato cultivation and the quantity of improved seed used were positive and significantly related to output at the 5% level of probability. As a result, it is recommended that farmers should increase their farm size, use of improved seeds and the adoption and practice of novel techniques in production. More emphasis should be placed on extension agents as they have a significant role to play in terms of improving and augmenting farmers’ education and information base through on farm demonstrations and result oriented workshops as all this will ensure increased production and productivity thereby increasing technical efficiency and achieving food self-sufficiency.


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