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Cultivation Arrangements and the Cost Efficiency of Rice Farming in Taiwan

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  • Mei-Ying Huang
  • Cliff Huang
  • Tsu-Tan Fu

Abstract

In this paper, a switching regression model is developed to analyze farmers' choice behavior and cost efficiency in field plowing arrangement in Taiwan. We find that the decision on the choice of plowing arrangement is determined by a cost comparison between self-plowing and hired-service, and other non-cost considerations, such as the availability of family labor and machinery, education level, non-farm income, age, and regional effects. Across a spectrum of farmer characteristics, empirical results indicate a potentially substantial cost-savings by hiring service for field plowing than by self-plowing. Self-plowing farmers also subject to a significant level of cost inefficiency. Copyright Kluwer Academic Publishers 2002

Suggested Citation

  • Mei-Ying Huang & Cliff Huang & Tsu-Tan Fu, 2002. "Cultivation Arrangements and the Cost Efficiency of Rice Farming in Taiwan," Journal of Productivity Analysis, Springer, vol. 18(3), pages 223-239, November.
    • Handle: RePEc:kap:jproda:v:18:y:2002:i:3:p:223-239
    DOI: 10.1023/A:1020686610802
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    References listed on IDEAS

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    1. Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, vol. 38(3), pages 387-399, July.
    2. Lee, Lung-Fei, 1978. "Unionism and Wage Rates: A Simultaneous Equations Model with Qualitative and Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 415-433, June.
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    Cited by:

    1. Chang, Ching-Cheng & Chen, Chi-Chung & Tseng, Wei-Chun & Hu, Wu-Yueh, "undated". "Estimating the Profit Efficiency of Contract and Non-Contract Rice Farms in Taiwan -- A Meta-Frontier and A Cross-Frontier Appraoch Applications," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205445, Agricultural and Applied Economics Association.
    2. Zohra Bouamra‐Mechemache & Jad Chaaban, 2010. "Determinants of Adoption of Protected Designation of Origin Label: Evidence from the French Brie Cheese Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 225-239, June.
    3. Ho, Phuc Trong Ho & Hung, Pham Xuan & Hoang, Lieu Thi & Phuong, Nguyen T.M., 2024. "Estimating cost efficiency and sources of inefficiency in paddy farming: A study in Vietnam’s Mekong Delta," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 14(01), January.
    4. repec:ags:aaea22:335541 is not listed on IDEAS
    5. Boisvert, Richard N. & Chang, Hung-Hao, 2005. "Explaining Participation in the Conservation Reserve Program and its Effects on Farm Productivity and Efficiency," 2005 Annual meeting, July 24-27, Providence, RI 19321, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Chang, Hung-Hao & Boisvert, Richard N., 2006. "Participation in the Conservation Reserve Program and Off-Farm Work: Implications for Farm and Farm Household Productivity," 2006 Annual meeting, July 23-26, Long Beach, CA 21147, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Chang, Hung-Hao & Boisvert, Richard N., 2009. "The Conservation Reserve Program, Off-Farm Work, and Farm Household Technical Efficiencies," Working Papers 57034, Cornell University, Department of Applied Economics and Management.

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