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Efficiency Gains Due To Economies Of Scope And Scale

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  • Shaik, Saleem
  • Addey, Kwame
  • Yeboah, Osei

Abstract

Using a non-parametric linear programming approach, our contribution is (1) to examine if efficiency gains are realized due to diversification and (2) to demonstrate the diversification efficiency gains realized is a product of economies of scope efficiency gains and scale efficiency gains employing U.S. cropping sector made up of nine major crops for the period, 1975-1996. Results indicate efficiency gains are realized due to diversification for all the two-crop combinations. Further the average diversification efficiency gains are explained by scope efficiency gains and scale efficiency gains, with the t-test at the 5% level of significance indicates the mean diversification efficiency gains, scope efficiency gains and scale efficiency gains (with exceptions) are significantly different from one.

Suggested Citation

  • Shaik, Saleem & Addey, Kwame & Yeboah, Osei, 2017. "Efficiency Gains Due To Economies Of Scope And Scale," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252790, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea17:252790
    DOI: 10.22004/ag.econ.252790
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    References listed on IDEAS

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    Keywords

    Production Economics; Productivity Analysis; Research Methods/ Statistical Methods; Risk and Uncertainty;
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