IDEAS home Printed from https://ideas.repec.org/p/ags/iaae09/49953.html
   My bibliography  Save this paper

Stochastic Production Frontiers and Decomposition of Output Growth: The case of citrus-growing farms in Tunisia

Author

Listed:
  • Dhehibi, Boubaker
  • Elloumi, Mohamed

Abstract

The aim of this paper is to investigate the relative contribution of technical efficiency, technological change and increased input use to the output growth of the Tunisian citrus growing farms using a stochastic frontier production function approach applied to panel data for the period 2003-2005. Knowledge of the relative contribution of factors productivity and input use to output growth and improvements in technical efficiency is crucial to provide a comprehensive view of the state of the citrus producing sector in the country and help farm managers and policy makers draw appropriate policy measures. The proposed methodology is based on the use of a flexible translog functional form. Results indicate that technical efficiency of production in citrus producing farms investigated ranges from a minimum of 11.19% to a maximum of 96.82% with an average technical efficiency estimate of 49.97%. This suggests that citrus producers may increase their production by as much as 50.03% through more efficient use of production inputs. Furthermore, the production is characterized by increasing returns to scale, which on average was 1.057. Finally, investigation of the sources of production growth reveals that the contribution of total factor productivity is found to be the main source of that growth.

Suggested Citation

  • Dhehibi, Boubaker & Elloumi, Mohamed, 2009. "Stochastic Production Frontiers and Decomposition of Output Growth: The case of citrus-growing farms in Tunisia," 2009 Conference, August 16-22, 2009, Beijing, China 49953, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae09:49953
    DOI: 10.22004/ag.econ.49953
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/49953/files/24.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.49953?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Fulginiti, Lilyan E & Perrin, Richard K, 1993. "Prices and Productivity in Agriculture," The Review of Economics and Statistics, MIT Press, vol. 75(3), pages 471-482, August.
    2. Forsund, Finn R. & Lovell, C. A. Knox & Schmidt, Peter, 1980. "A survey of frontier production functions and of their relationship to efficiency measurement," Journal of Econometrics, Elsevier, vol. 13(1), pages 5-25, May.
    3. Pitt, Mark M. & Lee, Lung-Fei, 1981. "The measurement and sources of technical inefficiency in the Indonesian weaving industry," Journal of Development Economics, Elsevier, vol. 9(1), pages 43-64, August.
    4. Munir Ahmad & Boris E. Bravo-Ureta, 1995. "An Econometric Decomposition of Dairy Output Growth," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(4), pages 914-921.
    5. Karagiannis, Giannis & Tzouvelekas, Vangelis, 2001. "Self-Dual Stochastic Production Frontiers and Decomposition of Output Growth: The Case of Olive-Growing Farms in Greece," Agricultural and Resource Economics Review, Cambridge University Press, vol. 30(2), pages 168-178, October.
    6. Shenggen Fan, 1991. "Effects of Technological Change and Institutional Reform on Production Growth in Chinese Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 266-275.
    7. K. Kalirajan, 1981. "An Econometric Analysis of Yield Variability in Paddy Production," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 29(3), pages 283-294, November.
    8. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics, Blackwell, vol. 7(3-4), pages 185-208, October.
    9. Lachaal, Lassaad, 1994. "Subsidies, Endogenous Technical Efficiency And The Measurement Of Productivity Growth," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 26(1), pages 1-12, July.
    10. K.P. Kalirajan & M.B. Obwona & S. Zhao, 1996. "A Decomposition of Total Factor Productivity Growth: The Case of Chinese Agricultural Growth before and after Reforms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 331-338.
    11. Lachaal, Lassaad, 1994. "Subsidies, Endogenous Technical Efficiency and the Measurement of Productivity Growth," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 26(1), pages 299-310, July.
    12. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    13. W, Y, 1995. "Productivity Growth, Technological Progress, and Technical Efficiency Change in China: A Three-Sector Analysis1," Journal of Comparative Economics, Elsevier, vol. 21(2), pages 207-229, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dhehibi, Boubaker & Lachaal, Lassaad & Karray, B. & Chebil, Ali, 2006. "Decomposition of output growth in the Tunisian olive-growing sector: A frontier production function approach," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece 10037, European Association of Agricultural Economists.
    2. Lachaal, Lassaad & Chebil, Ali & Dhehibi, Boubaker, 2004. "A Panel Data Approach to the Measurement of Technical Efficiency and its Determinants: Some Evidence from the Tunisian Agro-Food Industry," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 5(1), pages 1-9, January.
    3. Bravo-Ureta, Boris E. & Pinheiro, Antonio E., 1993. "Efficiency Analysis Of Developing Country Agriculture: A Review Of The Frontier Function Literature," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 22(1), pages 1-14, April.
    4. Karagiannis, Giannis & Tzouvelekas, Vangelis, 2001. "Self-Dual Stochastic Production Frontiers and Decomposition of Output Growth: The Case of Olive-Growing Farms in Greece," Agricultural and Resource Economics Review, Cambridge University Press, vol. 30(2), pages 168-178, October.
    5. Giannis Karagiannis, 2005. "Explaining output growth with a heteroscedastic non-neutral production frontier: the case of sheep farms in Greece," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 32(1), pages 51-74, March.
    6. Coelli, Tim J., 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 1-27, December.
    7. Dhehibi, Boubaker & Lachaal, Lassaad & Elloumi, Mohamed & Messaoud, Emna B., 2007. "Measurement and Sources of Technical Inefficiency in the Tunisian Citrus Growing Sector," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9391, European Association of Agricultural Economists.
    8. Abdul Wadud, 2013. "Impact of Microcredit on Agricultural Farm Performance and Food Security in Bangladesh," Working Papers 14, Institute of Microfinance (InM).
    9. Ngoc-Anh Vo Thi & Dev Vencappa, 2008. "Does the Entry Mode of Foreign Banks Matter for Bank Efficiency? Evidence from the Czech Republic,Hungary, and Poland," William Davidson Institute Working Papers Series wp925, William Davidson Institute at the University of Michigan.
    10. Giannis Karagiannis & Peter Midmore & Vangelis Tzouvelekas, 2002. "Parametric Decomposition of Output Growth," Working Papers 0204, University of Crete, Department of Economics.
    11. Vangelis Tzouvelekas & Peter Midmore & Konstantinos Giannakas & Konstantinos Mattas, 1999. "Decomposition of Olive Oil Production Growth into Productivity and Size Effects : A Frontier Production Function Approach," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 51, pages 5-21.
    12. Munir Ahmad & Azkar Ahmad, 1998. "An Analysis of the Sources of Wheat Output Growth in the Barani Area of the Punjab," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(3), pages 231-249.
    13. Konstantinos Giannakas & Kien Tran & Vangelis Tzouvelekas, 2000. "Efficiency, technological change and output growth in Greek olive growing farms: a Box-Cox approach," Applied Economics, Taylor & Francis Journals, vol. 32(7), pages 909-916.
    14. Fenn, Paul & Vencappa, Dev & Diacon, Stephen & Klumpes, Paul & O'Brien, Chris, 2008. "Market structure and the efficiency of European insurance companies: A stochastic frontier analysis," Journal of Banking & Finance, Elsevier, vol. 32(1), pages 86-100, January.
    15. Carlo Altomonte & Marcella Nicolini & Armando Rungi & Laura Ogliari, 2010. "Assessing the Competitive Behaviour of Firms in the Single Market: A Micro-based Approach," European Economy - Economic Papers 2008 - 2015 409, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    16. Rungsuriyawiboon, Supawat & Xiaobing, Wang, 2007. "Recent Evidence On Agricultural Efficiency And Productivity In China: A Metafrontier Approach," IAMO Discussion Papers 90863, Institute of Agricultural Development in Transition Economies (IAMO).
    17. Bhende, M.J. & Kalirajan, K.P., 2007. "Technical Efficiency of Major Food and Cash Crops in Karnataka (India)," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 62(2), pages 1-17.
    18. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
    19. Madau, Fabio A., 2005. "Technical Efficiency in Organic Farming: An Application on Italian Cereal Farms Using a Parametric Approach," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24545, European Association of Agricultural Economists.
    20. Vangelis Tzouvelekas & Konstantinos Giannakas & Peter Midmore & Konstantinos Mattas, 1997. "Technical efficiency measures for olive-growing farms in Crete, Greece," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 3(2), pages 154-169, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae09:49953. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.