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Comparing ols and rank-based estimation techniques for production analysis: An application to Ghanaian maize farms.
125-130Views:148This paper introduces the rank-based estimation method to modelling the Cobb-Douglas production function as an alternative to the least squares approach. The intent is to demonstrate how a nonparametric regression based on a rank-based estimator can be used to estimate a Cobb-Douglas production function using data on maize production from Ghana. The nonparametric results are compared to common parametric specification using the ordinary least squares regression. Results of the study indicate that the estimated coefficients of the CobbDouglas Model using the Least squares method and the rank-based regression analysis are similar. Findings indicated that in both estimation techniques, land and Equipment had a significant and positive influence on output whilst agrochemicals had a significantly negative effect on output. Additionally, seeds which also had a negative influence on output was found to be significant in the robust rank-based estimation, but insignificant in the ordinary least square estimation. Both the least squares and rank-based regression suggest that the farmers were operating at an increasing returns to scale. In effect this paper demonstrate the usefulness of the rank-based estimation in production analysis.
JEL CODE: Q18, D24, Q12, C1 and C67
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The economic situation of Hungarian crop production enterprises, especially in Hajdú-Bihar county
Views:221Increasing the competitiveness of Hungarian crop production plays a key role in moving forward at the international level. However, improving efficiency and profitability is essential in this regard. The natural resources in Hungary provide an excellent opportunity for crop production. About 8% of the arable land in Hungary (a total of 4.3 million hectares) belongs to farmers in Hajdú-Bihar County. This research is based on secondary data that can be found in the HCSO and EMIS databases. HCSO data was used for the comparison of national and county data characterising crop production, while the EMIS database was used to process the financial data of enterprises dealing with field crop production. The Hungarian sample size is 853, of which 69 enterprises are from Hajdú-Bihar County. The aim of this study is to assess the profitability, assets and financial situation of arable crop production enterprises operating in Hajdú-Bihar County as a function of national average data. Based on the examined profitability indicators (operating ROS and ROA), it was established that the enterprises in Hajdú-Bihar County are profitable, even in a national context. In terms of operating ROS, the farms in the examined county were able to achieve a 3.6 percentage point higher value due to their more efficient cost management, despite having a similar level of technology compared to businesses spanning across the entire country. The proportion of farms with the lowest leverage ratio (<20%) is 16 percentage points higher at the county level than at the national level. In addition, almost 70% of the enterprises operating in Hajdú-Bihar County have excellent liquidity. This rate is 50% at the national level.
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THE PROFIT EFFICIENCY OF MORINGA OLEIFERA PRODUCTION IN OSUN STATE, NIGERIA
Views:204This study examined the profit efficiency of Moringa oleifera production by farmers in Osun State, Nigeria. Primary data were obtained from 150 respondents. Multistage sampling procedure was used for selecting respondents. The data were analyzed with the aid of descriptive statistics, budgetary analysis and stochastic frontier production function. The findings revealed that male predominate moringa enterprise with about 55.3% male, most producers fall between the age bracket 41-50years with a mean age of 44.92 (± 13.168) years and the average farm size is 0.3 hectares whilst indicating that most producers had less than 0.1 hectares of land. Moringa production had a benefit cost ratio of ₦5.852, profit margin of ₦0.182, expense structure ratio of ₦0.107, net return on investment ₦4.857, rate of return of ₦5.482 and profitability ratio of ₦0.981. The average profit efficiency of moringa producers was 18.73% on the profit frontier. Family labour, hired labour and transport cost were significant and had positive coefficient while the seed cost, pesticide cost, level of education and farm size are also significant but bears negative coefficient. The level of education and farm size are amongst the inefficiency variables considered. This study concludes that Moringa oleifera production is highly profitable but producers have not been able to maximize profit efficiency. It therefore recommends that producers improve on adding value to moringa products and extend their channels of distribution considering the cost incurred on transportation.
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Future role of agriculture in multifunctional development of rural areas
29-37Views:132In the paper the changes in agriculture in terms of falling share of agriculture in gross domestic product and decrease in the share of persons employed in agriculture in total employment in Poland and selected countries are discussed.The main driver of these changes is a faster pace of development of non-agricultural activities and continually deteriorating relations between the costs of production factors and prices of agricultural products. The rate of growth in labor costs and prices of the means of production for agriculture is much faster than the rate of increase in prices of agricultural products.This causes the decline in profitability of agricultural production which increases the size of farms. The pace is dependent on the level of economic development of the country. The study also identified trends in the structure of farms, functions and systems of agriculture in the generational perspective. The polarization of the farms will deepen.A strong group of commodity farms and a group of so-called self – subsistence social farms will emerge. Agriculture in Poland will have a dual nature. In addition to the production function and social services agriculture will expand the scope of service functions for the environment and society.
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Future role of agriculture in multifunctional development of rural areas
135-143Views:124In the paper the changes in agriculture in terms of falling share of agriculture in gross domestic product and decrease in the share of persons employed in agriculture in total employment in Poland and selected countries are discussed.The main driver of these changes is a faster pace of development of non-agricultural activities and continually deteriorating relations between the costs of production factors and prices of agricultural products. The rate of growth in labor costs and prices of the means of production for agriculture is much faster than the rate of increase in prices of agricultural products. This causes the decline in profitability of agricultural production which in creases the size of farms. The pace is dependent on the level of economic development of the country. The study also identified trends in the structure of farms, functions and systems of agriculture in the generational perspective.The polarization of the farms will deepen.A strong group of commodity farms and a group of so-called self – subsistence social farms will emerge. Agriculture in Poland will have a dual nature. In addition to the production function and social services agriculture will expand the scope of service functions for the environment and society.
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Off-farm participation and technical efficiency among smallholder farmers in the Northern Region, Ghana
35-43Views:238The study aimed at investigating the effects of off-farm participation on technical efficiency of maize production in the Tolon district of the Northern Region, Ghana. The Logit regression model was used to analyze the determinants of off-farm participation while the stochastic frontier production function was used to model the determinants of maize output and technical efficiency. The empirical results from the logistic regression model indicate that age of farmer, educational attainment, farming experience, farm size, and previous farm income are significant drivers of farmers’ participation in off-farm activities. Farmers’ average technical efficiency level was 90.7% suggesting a 9.3% potential loss to inefficiency. Moreover, participation in off-farm activities had a negative influence on farmers’ technical efficiency level. The study, therefore, recommends that farm-level policy should be directed towards making the agricultural sector attractive by promoting investment and agricultural employment opportunities in the rural areas so as to ensure full commitment to farming activities.
JEL code: Q22
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