Technical efficiency estimates of paddy farming in peninsular Malaysia : a comparative analysis
Estimating technical efficiency of production techn ology is important for policy purposes, particularl y for a sector which has strategic importance in self sufficiency level such as paddy farming. This study compared te chnical efficiency of paddy farming in east coast and west coast of Pen...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Scholars Research Library
2013
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| Online Access: | http://psasir.upm.edu.my/id/eprint/30737/1/Technical%20efficiency%20estimates%20of%20paddy%20farming%20in%20peninsular%20Malaysia.pdf http://psasir.upm.edu.my/id/eprint/30737/ http://scholarsresearchlibrary.com/abr-vol4-iss5.html |
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| Summary: | Estimating technical efficiency of production techn
ology is important for policy purposes, particularl
y for a sector
which has strategic importance in self sufficiency
level such as paddy farming. This study compared te
chnical
efficiency of paddy farming in east coast and west
coast of Peninsular Malaysia by using data envelopm
ent analysis
(DEA) and Stochastic Frontier Analysis (SFA). Prima
ry data were collected using a set of structured qu
estionnaire
from 230 farmers in east coast and west coast of Pe
ninsular Malaysia. The data are analyzed by using D
EA and
SFA. The results indicated that the differences in
methodologies employed produced different efficienc
y estimates.
The DEA result showed that efficiency score for Pen
insular Malaysia is 56%, which is lower from the ef
ficiency
score obtained using the SFA at 69%. Due to the lar
ge differences in technical efficiency results, rec
ommendation
for policy purpose should not depend on only one me
thod as it is inaccurate. |
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