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Technical efficiency of organic fertilizer in small farms of Nicaragua: 1998-2005

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  • Zuniga Gonzalez, Carlos Alberto

Abstract

This article applies frontier production function analysis to small farms in Nicaragua during 1998-2005 (Battese and Coelli, 1988). The objective of this study is to estimate an average function that will provide a picture for the shape of the organic fertilizer technology of an average firm (in our case, agricultural production units). Furthermore, a best-practice scenario for organic fertilizer against which the efficiency of the firms within the primary sector can be measured is presented (Coelli, 1995). The results show an acceptable average of technical efficiency which the makers of public policy in Nicaragua a must consider for the future. This is imperative if we consider economy activity indexes that have increased during this period.

Suggested Citation

  • Zuniga Gonzalez, Carlos Alberto, 2009. "Technical efficiency of organic fertilizer in small farms of Nicaragua: 1998-2005," MPRA Paper 49352, University Library of Munich, Germany, revised 24 Sep 2010.
    • Handle: RePEc:pra:mprapa:49352
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    References listed on IDEAS

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    1. 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.
    2. Alvarez, Antonio & Arias, Carlos, 2004. "Technical efficiency and farm size: a conditional analysis," Agricultural Economics, Blackwell, vol. 30(3), pages 241-250, May.
    3. Park, Timothy A. & Lohr, Luanne, 2010. "Assessing the Technical and Allocative Efficiency of U.S. Organic Producers," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 42(2), pages 247-259, May.
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    5. Schmidt, Peter, 1976. "On the Statistical Estimation of Parametric Frontier Production Functions," The Review of Economics and Statistics, MIT Press, vol. 58(2), pages 238-239, May.
    6. Gorton, Matthew & Davidova, Sophia, 2004. "Farm productivity and efficiency in the CEE applicant countries: a synthesis of results," Agricultural Economics, Blackwell, vol. 30(1), pages 1-16, January.
    7. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    8. Battese, George E. & Coelli, Tim J. & Colby, T.C., 1989. "Estimation of Frontier Production Functions and the Efficiencies of Indian Farms Using Panel Data from ICRISAT's Village Level Studies," 1989 Conference (33rd), February 7-9, 1989, Christchurch, New Zealand 144383, Australian Agricultural and Resource Economics Society.
    9. Víctor Moreira & Boris Bravo-Ureta, 2010. "Technical efficiency and metatechnology ratios for dairy farms in three southern cone countries: a stochastic meta-frontier model," Journal of Productivity Analysis, Springer, vol. 33(1), pages 33-45, February.
    10. Fare, Rolf & Knox Lovell, C. A., 1978. "Measuring the technical efficiency of production," Journal of Economic Theory, Elsevier, vol. 19(1), pages 150-162, October.
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    12. Bravo-Ureta, Boris E. & de Almeida, Alexandre & Solis, Daniel & Inestroza, Aaron, 2010. "A Farm Level Analysis of the Economic Impact of the MARENA Program in Honduras," 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida 55658, Southern Agricultural Economics Association.
    13. 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.
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    Cited by:

    1. Somnath Chattopadhyay, 2011. "Earnings efficiency and poverty dominance analysis: a spatial approach," Economics Bulletin, AccessEcon, vol. 31(3), pages 2298-2318.
    2. Djokoto, Justice G., 2015. "Technical efficiency of organic agriculture: a quantitative review," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 117(2), pages 1-11, August.

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    More about this item

    Keywords

    Technical efficiency; LSMS; organic fertilizer; small farm; panel data.;
    All these keywords.

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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