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Technical efficiency of the agricultural sector in Mexico: An overview of data envelopment analysis

Author

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  • Osvaldo U. Becerril-Torres

    (Universidad Autónoma del Estado de México, Facultad de Economía, Cerro de Coatepec s/n, Ciudad Universitaria, Toluca, Estado de México, C. P. 50120, México.)

  • Gabriela Rodríguez Licea

    (Universidad Autónoma del Estado de México, Facultad de Economía, Cerro de Coatepec s/n, Ciudad Universitaria, Toluca, Estado de México. C. P. 50120.)

  • Javier Jesús Ramírez Hernández

    (Universidad Autónoma del Estado de México, Centro Universitario UAEM Tenancingo, Tenancingo, Estado de México. C. P. 52400.)

Abstract

The aim of this paper is to understand the agricultural sector in Mexico by looking at the way productive factors are being used and its technical efficiency. By means of data envelopment analysis, the empirical evidence shows that the northern states of the country are leaders in the sector, the north-central states determine the efficient production frontier and only eight of them operate efficiently under variable returns to scale, while 24 operate in the segment decreasing returns to scale. The overall efficiency of the states is 0.49, so there is the possibility of increasing output by 51% by making a better use of capital and labor.

Suggested Citation

  • Osvaldo U. Becerril-Torres & Gabriela Rodríguez Licea & Javier Jesús Ramírez Hernández, 2011. "Technical efficiency of the agricultural sector in Mexico: An overview of data envelopment analysis," Economía, Instituto de Investigaciones Económicas y Sociales (IIES). Facultad de Ciencias Económicas y Sociales. Universidad de Los Andes. Mérida, Venezuela, vol. 36(31), pages 85-110, January-j.
    • Handle: RePEc:ula:econom:v:36:y:2011:i:31:p:85-110
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Data envelopment analysis; technical efficiency; variable returns to scale; constant returns to scale.;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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