scholarly journals Technical Efficiency of Independent Oil Palm Smallholder In Indonesia

2021 ◽  
pp. 59
Author(s):  
Firna Varina ◽  
Sri Hartoyo ◽  
Nunung Kusnadi ◽  
Amzul Rifin
Keyword(s):  
Technical Efficiency ◽  
Oil Palm ◽  
Technical Assistance ◽  
Stochastic Frontier ◽  
Returns To Scale ◽  
Stochastic Frontier Approach ◽  
Funding Sources ◽  
Result Show ◽  
Input Variables ◽  
Farmer Education

This study assesses technical efficiency and possible sources of inefficiency of independent smallholder oil palm production in Indonesia with stochastic frontier approach.  The result show all the input variables is  positively affect the oil palm production and exhibit decreasing returns to scale .  The farmers have mean technical efficiency (TE) values 0.6541, however about 53 % farmers have TE above 0.70. Factors such as age of farmer, education, extension services, member of farmer group,  land ownership and funding sources have a positive and significant effect on technical efficiency. It is suggested that by improving factors such as input used, education level, technical assistance on farming practice and accessibility to credit facilities should be increase the productivity and technical efficiency of oil palm production.  The farmers who have plant over 30 years old, which the TE and productivity are the lowest values,  should be thinking about replanting

scholarly journals Risk Adjusted Production Efficiency of Maize Farmers in Ethiopia: Implication for Improved Maize Varieties Adoption

2017 ◽  
Vol 5 (9) ◽  
pp. 1099
Author(s):  
Sisay Diriba Lemessa ◽  
Molla Alemayehu Yismawu ◽  
Megersa Debela Daksa ◽  
Mulugeta Damie Watabaji
Keyword(s):  
Technical Efficiency ◽  
Production Efficiency ◽  
Stochastic Frontier ◽  
Returns To Scale ◽  
Stochastic Frontier Approach ◽  
Technical Inefficiency ◽  
Maize Production ◽  
Production Risk ◽  
Access To Credit ◽  
Maize Varieties

This study analyzes the technical efficiency and production risk of 862 maize farmers in major maize producing regions of Ethiopia. It employs the stochastic frontier approach (SFA) to estimate the level of technical efficiencies of stallholder farmers. The stochastic frontier approach (SFA) uses flexible risk properties to account for production risk. Thus, maize production variability is assessed from two perspectives, the production risk and the technical efficiency. The study also attempts to determine the socio-economic and farm characteristics that influence technical efficiency of maize production in the study area. The findings of the study showed the existence of both production risk and technical inefficiency in maize production process. Input variables (amounts per hectare) such as fertilizer and labor positively influence maize output. The findings also show that farms in the study area exhibit decreasing returns to scale. Fertilizer and ox plough days reduce output risk while labor and improved seed increase output risk. The mean technical efficiency for maize farms is 48 percent. This study concludes that production risk and technical inefficiency prevents the maize farmers from realizing their frontier output. The best factors that improve the efficiency of the maize farmers in the study area include: frequency of extension contact, access to credit and use of intercropping. It was also realized that altitude and terracing in maize farms had influence on farmer efficiency.

scholarly journals ANALISIS EFISIENSI PERBANKAN SYA RIAH DENGAN MENGGUNAKAN STOCHASTIC FRONTIER APPROACH PERIODE 2010–2014

2016 ◽  
Vol 3 (2) ◽  
pp. 153
Author(s):  
Indah Sukmaningrum ◽  
Hotman Tohir Pohan
Keyword(s):  
Technical Efficiency ◽  
Panel Data Analysis ◽  
Stochastic Frontier ◽  
Secondary Data ◽  
Multiple Regression Equation ◽  
Islamic Banks ◽  
Labor Costs ◽  
Stochastic Frontier Approach ◽  
Fixed Assets ◽  
Input Variables

<span class="fontstyle0">This study aimed to analyze the technical efficiency and the relationship<br />between savings, total fixed assets, and labor costs for financing the Islamic Banks in Indonesia relating to the technical efficiency. This study uses secondary data by downloading BUS quarterly reports on directory OJK in 2015. The sample used in this study were 190 samples from 10 Islamic Banks since the second quarter of 2010 up to the end 2014. Panel data analysis using the method of Stochastic Frontier Approach orientation Cobb Douglas production function and see the bank with the intermediation approach. Causality data is processed using multiple regression equation with Cobb Douglas linear function. Based on the results of this study concluded that an efficient BUS with the highest technical and Bank Panin Syariah, BUS with the lowest technical efficiency is Bank Victoria Syariah. Based on the results of all the input variables affect the output variables. And the rise and fall of proven technical efficiency due to the influence of the variable relationship</span>

scholarly journals Measuring the Efficiency of BAZNAS in Managing Zakat Funds with Stochastic Frontier Approach Analysis, 2002–2016

2018 ◽  
Vol 3 (1) ◽  
pp. 89-107
Author(s):  
Risanda A. ◽  
Faishol Luthfi ◽  
Sri Herianingrum
Keyword(s):  
Time Series ◽  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Time Series Data ◽  
Stochastic Frontier ◽  
Series Data ◽  
Stochastic Frontier Approach ◽  
Frontier Analysis ◽  
Operational Costs ◽  
Input Variables

This study aims to measure the technical efficiency and identify factors that cause technical inefficiency of Badan Amil Zakat Nasional (BAZNAS) in managing zakat funds on receipt and the distribution of zakat funds. The data used were time series data from 2002 to2016. The input variables used were total assets and operational costs, while the output variables were the receipt of zakat funds and the distribution of zakat funds. Using stochastic frontier analysis, this study has successfully identified that total assets and operational costs had a positive and significant effect on the receipt of zakat funds. The same results also demonstrated that the operational costs for the distribution of zakat funds had a positive and significant effect. The results for total assets on distribution of zakat funds were positive but not significant. Overall, the technical efficiency regarding the receipt of BAZNAS zakat funds was found to be 94.98 percent, which means that there is 5.02 percent remaining that could still be optimized, while technical efficiency regarding the distribution of BAZNAS zakat funds was found to be 70.99 percent, leaving 29.01 percent that could still be optimized. Keywords: Badan Amil Zakat Nasional (BAZNAS), Stochastic Frontier Analysis, Technical Efficiency

Technical efficiency and production risk of maize production: Evidence from Ghana

2018 ◽  
Vol 3 (2) ◽  
pp. 74-80
Author(s):  
Atta Boahen Oppong
Keyword(s):  
Technical Efficiency ◽  
Production Efficiency ◽  
Stochastic Frontier ◽  
Returns To Scale ◽  
Maize Production ◽  
Production Risk ◽  
Intermediate Inputs ◽  
Labor Inputs ◽  
Specific Factors ◽  
Input Variables

The paper performs an investigation of maize production efficiency in Ghana by the stochastic frontier model with flexible riskproperties using a cross section of 232 farms from the Brong-Ahafo Region. The findings of the study are the translog model isbest fit for the mean output function, whilst the input variables: seed, herbicide, land, labor and cost of intermediate inputspositively influence maize output at decreasing returns to scale. The study also finds that seed and labor inputs are negativelyrelated to production risk, whilst land and cost of intermediate inputs are classified as risk increasing inputs. The averagetechnical efficiency estimate is 62% and the combined farm specific factors explain the variation in technical efficiency. Thestudy concludes that on the average 38% of potential output is lost due to technical inefficiency and production risk in inputsand the use of the best farm practices contribute to produce maize optimally.

scholarly journals Technical efficiency analysis of maize production: evidence from Ghana

2014 ◽  
Vol 8 (2-3) ◽  
pp. 73-79 ◽  
Author(s):  
Beatrice Bempomaa ◽  
Henry de-Graft Acquah
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Returns To Scale ◽  
Maize Yield ◽  
Stochastic Frontier Approach ◽  
Maize Production ◽  
Productivity Level ◽  
Work Activities ◽  
Increasing Returns To Scale ◽  
Farm Work

The study applies the single-stage modelling stochastic frontier approach to investigate the performance of maize farmers in the Ejura-Sekyedumase District of Ghana. It estimates the level of technical efficiency and its determinants for 306 maize farmers. Findings indicated that land, labour and fertilizer influenced output positively whilst agrochemicals and seeds affected output negatively. A wide variation in output was also found among producers of maize. The study further revealed that age, sex and off-farm work activities were significant determinants of technical inefficiencies in production. Results from the maximum likelihood estimate of the frontier model showed that averagely, farmers were 67% technically efficient, implying that 33% of maize yield was not realized. The return to scale which measures the productivity level of farmers was 1.22, suggesting that the farmers are operating at an increasing returns to scale.

scholarly journals Agricultural Technical Efficiency of Smallholder Farmers in Ethiopia: A Stochastic Frontier Approach

Land ◽  
2021 ◽  
Vol 10 (3) ◽  
pp. 246
Author(s):  
Markose Chekol Zewdie ◽  
Michele Moretti ◽  
Daregot Berihun Tenessa ◽  
Zemen Ayalew Ayele ◽  
Jan Nyssen ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Crop Production ◽  
Large Scale ◽  
Positive Impact ◽  
Smallholder Farmers ◽  
Stochastic Frontier ◽  
Crop Productivity ◽  
Small Scale ◽  
Stochastic Frontier Approach ◽  
Small Scale Irrigation

In the past decade, to improve crop production and productivity, Ethiopia has embarked on an ambitious irrigation farming expansion program and has introduced new large- and small-scale irrigation initiatives. However, in Ethiopia, poverty remains a challenge, and crop productivity per unit area of land is very low. Literature on the technical efficiency (TE) of large-scale and small-scale irrigation user farmers as compared to the non-user farmers in Ethiopia is also limited. Investigating smallholder farmers’ TE level and its principal determinants is very important to increase crop production and productivity and to improve smallholder farmers’ livelihood and food security. Using 1026 household-level cross-section data, this study adopts a technology flexible stochastic frontier approach to examine agricultural TE of large-scale irrigation users, small-scale irrigation users and non-user farmers in Ethiopia. The results indicate that, due to poor extension services and old-style agronomic practices, the mean TE of farmers is very low (44.33%), implying that there is a wider room for increasing crop production in the study areas through increasing the TE of smallholder farmers without additional investment in novel agricultural technologies. Results also show that large-scale irrigation user farmers (21.05%) are less technically efficient than small-scale irrigation user farmers (60.29%). However, improving irrigation infrastructure shifts the frontier up and has a positive impact on smallholder farmers’ output.

scholarly journals Measurement of technical efficiency in the case of heterogeneity of technologies used between firms – Based on evidence from Polish crop farms

2021 ◽  
Author(s):  
Jerzy Marzec ◽  
Andrzej Pisulewski
Keyword(s):  
Technical Efficiency ◽  
Production Function ◽  
Prior Distribution ◽  
Prior Information ◽  
Stochastic Frontier ◽  
Returns To Scale ◽  
Random Coefficients ◽  
Point Of View ◽  
Model Specification ◽  
Stochastic Frontier Models

In the present study, we have investigated several competing stochastic frontier models which differ in terms of the form of the production function (Cobb-Douglas or translog), inefficiency distribution (half-normal or exponential distribution) and type of prior distribution for the parameters (hierarchical or non-hierarchical from the Bayesian point of view). This last distinction corresponds to a difference between random coefficients and fixed coefficients models. Consequently, this study aims to examine to what extent inferences about estimates of farms' efficiency depend on the above assumptions. Moreover, the study intends to investigate how far the production function's characteristics are affected by the choice of the type of prior distribution for the parameters. First of all, it was found that the form of the production function does not impact the efficiency scores. Secondly, we found that measures of technical efficiency are sensitive to distributional assumptions about the inefficiency term. Finally, we have revealed that estimates of technical efficiency are reasonably robust to the prior information about the parameters of crop farms' production technology. There is also a resemblance in the elasticity of output with respect to inputs between the models considered in this paper. Additionally, the measurement of returns to scale is not sensitive to model specification.

scholarly journals Determinants of firm-level technical efficiency: evidence using stochastic frontier approach

2008 ◽  
Vol 5 (3) ◽  
pp. 225-239 ◽  
Author(s):  
Evis Sinani ◽  
Derek C. Jones ◽  
Niels Mygind
Keyword(s):  
Technical Efficiency ◽  
Firm Size ◽  
Stochastic Frontier ◽  
Returns To Scale ◽  
Budget Constraints ◽  
Stochastic Frontiers ◽  
Firm Level ◽  
Soft Budget Constraints ◽  
Labor Quality ◽  
Enhance Efficiency

By estimating stochastic frontiers we investigate the determinants and dynamics of firm efficiency. We use a representative sample of Estonian firms for the period 1993-1999 – and are able to address problems that plague much previous work, such as the endogeneity of ownership. Our main findings are that: (i) foreign ownership increases technical efficiency; (ii) firm size and higher labor quality enhance efficiency, while soft budget constraints adversely affect efficiency; (iv) Estonian firms operate under constants returns to scale; (v) the percentage of firms operating at high levels of efficiency increases over time. As such our findings provide support for hypotheses that a firm’s ownership structure and its characteristics such as firm size, labor quality, soft budget constraints and time of privatization are important for its technical efficiency.

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