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1 – 10 of over 3000The purpose of this paper is to measure technical efficiency and examine its determinants while disentangling unobserved time-invariant heterogeneity from actual inefficiency…
Abstract
Purpose
The purpose of this paper is to measure technical efficiency and examine its determinants while disentangling unobserved time-invariant heterogeneity from actual inefficiency using comprehensive household-level panel data.
Design/methodology/approach
This paper estimates technical efficiency based on the true random-effects stochastic production frontier estimator with a Mundlak adjustment. By utilising comprehensive panel data with 4,694 observations from 39 districts of four major maize-producing regions in Ethiopia, the author measures technical efficiency and examine its determinants while disentangling unobserved time-invariant heterogeneity from technical inefficiency. By using competing stochastic production frontier estimators, the author provides insights into the influence of farm heterogeneity on measuring farm efficiency and the subsequent impact on the ranking of farmers based on their efficiency scores.
Findings
The study results indicate that ignoring unobservable farmer heterogeneity leads to a downwards bias of technical efficiency estimates with a consequent effect on the ranking of farmers based on their efficiency scores. The mean technical efficiency score implied that about a 34% increase in maize productivity can be achieved with the current input use and technology in Ethiopia. The key determinants of the technical inefficiency of maize farmers are the age, gender and formal education level of the household head, household size, income, livestock ownership, and participation in off-farm activities.
Research limitations/implications
While the findings of this study are critical for informing policy on improving agricultural production and productivity, a few important things are worth considering in terms of the generalisability of the findings. First, the study relied on secondary data, so only a snapshot of environmental factors was accounted for in the empirical estimations. Second, there could be other sources of unmeasured potential sources of heterogeneity caused by persistent technical inefficiency and endogeneity of inputs. Third, the study is limited to one country. Therefore, future research should extend the analysis to ensure the generalisability of the empirical findings regarding the extent to which unmeasured potential sources of heterogeneity caused by persistent technical inefficiency, endogeneity of inputs and other unobservable country-specific features – such as geographical differences.
Originality/value
This paper contributes to the literature on agricultural productivity and efficiency by providing new evidence on the influence of unobservable heterogeneity in a farm efficiency analysis. While agricultural production is characterised by heterogeneous production conditions, the influence of unobservable farm heterogeneity has generally been ignored in technical efficiency estimations, particularly in the context of smallholder farming. The value of this paper comes from disentailing producer-specific random heterogeneity from the actual inefficiency.
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Lijuan Zhao, Yan Liu and Junhong Shi
In the context of carbon peaking and neutrality, effectively controlling agricultural carbon emissions has gained academic attention. As an essential form of agricultural service…
Abstract
Purpose
In the context of carbon peaking and neutrality, effectively controlling agricultural carbon emissions has gained academic attention. As an essential form of agricultural service scale management, this study investigates whether and how trusteeship affects the carbon emission behavior in planting production.
Design/methodology/approach
The authors established a theoretical framework to analyze the impact of agricultural production trusteeship on carbon emissions from planting. China's provincial panel data in the 2012–2021 period were selected to test the impact, mechanisms and heterogeneity of agricultural production trusteeship on carbon emissions from planting using the bidirectional fixed effect model and the panel correction standard error regression model.
Findings
The findings indicate that agricultural production trusteeship significantly inhibits carbon emissions from planting, especially in the dimensions of fertilizer input, pesticide application, agricultural film use and mechanical fuel. Agricultural production trusteeship primarily affects the intensity of these carbon emissions through contiguous farmland management and planting structure adjustment. Further examinations revealed that the influence of agricultural production trusteeship on carbon emissions from planting was heterogeneous with respect to geographical location, proportion of non-farming income and scale of agricultural production.
Originality/value
This study is the first to systematically evaluate the impact of agricultural production trusteeship on carbon emissions from planting.
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Joonho Na, Qia Wang and Chaehwan Lim
The purpose of this study is to analyze the environmental efficiency level and trend of the transportation sector in the upper–mid–downstream of the Yangtze River Economic Belt…
Abstract
Purpose
The purpose of this study is to analyze the environmental efficiency level and trend of the transportation sector in the upper–mid–downstream of the Yangtze River Economic Belt and the JingJinJi region in China and assess the effectiveness of policies for protecting the low-carbon environment.
Design/methodology/approach
This study uses the meta-frontier slack-based measure (SBM) approach to evaluate environmental efficiency, which targets and classifies specific regions into regional groups. First, this study employs the SBM with the undesirable outputs to construct the environmental efficiency measurement models of the four regions under the meta-frontier and group frontiers, respectively. Then, this study uses the technology gap ratio to evaluate the gap between the group frontier and the meta-frontier.
Findings
The analysis reveals several key findings: (1) the JingJinJi region and the downstream of the YEB had achieved the overall optimal production technology in transportation than the other two regions; (2) significant technology gaps in environmental efficiency were observed among these four regions in China; and (3) the downstream region of the YEB exhibited the lowest levels of energy consumption and excessive CO2 emissions.
Originality/value
To evaluate the differences in environmental efficiency resulting from regions and technological gaps in transportation, this study employs the meta-frontier model, which overcomes the limitation of traditional environmental efficiency methods. Furthermore, in the practical, the study provides the advantage of observing the disparities in transportation efficiency performed by the Yangtze River Economic Belt and the Beijing–Tianjin–Hebei regions.
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Vasim Akram, Hussein Al-Zyoud, Asheref Illiyan and Fathi Elloumi
This study examines the performance of India's food processing sector by estimating its output growth, technical efficiency (TE) and input-driven growth (IDG)
Abstract
Purpose
This study examines the performance of India's food processing sector by estimating its output growth, technical efficiency (TE) and input-driven growth (IDG)
Design/methodology/approach
This study used panel data from six food processing manufacturing industries for the period 2000–01 to 2017–18. Technical efficiency and input-driven growth was measured using the parametric half-normal stochastic frontier production function.
Findings
The findings of this study showed that the estimated average technical efficiency is 86.6%, which specifies that the Indian food processing sector is technically inefficient. In addition, the output growth rate is 5.5%, driven by high doses of inputs (5.7%), whereas there is no indication of constant returns to scale. However, the food processing sector has experienced more input-driven expansion than either technological or efficiency changes.
Research limitations/implications
This study is limited to India's organized manufacturing food processing sector; the aggregate macro data at a three-digit level based on the national industrial classification (NIC) was used. This study provides robust estimates for industrialists and processors, as well as concrete policy formulations on how overdoses of inputs may lead to high exploitation of resources, whereas outputs can be augmented by implementing upgraded and new technologies.
Originality/value
Previous research has estimated the total factor productivity and technical efficiency only in order to analyze the food sector's performance, but none of the studies have evaluated the share of inputs in growth performance and efficiency. Therefore, this study contributes by measuring growth performance and the share of inputs in the growth performance of India's food processing sector.
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N'Banan Ouattara, Xueping Xiong, Abdelrahman Ali, Dessalegn Anshiso Sedebo, Trazié Bertrand Athanase Youan Bi and Zié Ballo
This study examines the impact of agricultural credit on rice farmers' technical efficiency (TE) in Côte d'Ivoire by considering the heterogeneity among credit sources.
Abstract
Purpose
This study examines the impact of agricultural credit on rice farmers' technical efficiency (TE) in Côte d'Ivoire by considering the heterogeneity among credit sources.
Design/methodology/approach
A multistage sampling technique was used to collect data from 588 randomly sampled rice farmers in seven rice areas of the country. The authors use the endogenous stochastic frontier production (ESFP) model to account for the endogeneity of access to agricultural credit.
Findings
On the one hand, agricultural credit has a significant and positive impact on rice farmers' TE. Rice farmers receiving agricultural credit have an average of 5% increase in their TE, confirming the positive impact of agricultural credit on TE. On the other hand, the study provides evidence that the impact of credit on rice production efficiency differs depending on the source of credit. Borrowing from agricultural cooperatives and paddy rice buyers/processors positively and significantly influences the TE, while borrowing from microfinance institutions (MFIs) negatively and significantly influences the TE. Moreover, borrowing from relatives/friends does not significantly influence TE.
Research limitations/implications
Future research can further explore the contribution of agricultural credit by including several agricultural productions and using panel data.
Originality/value
The study provides evidence that the impact of agricultural credit on agricultural production efficiency depends on the source of credit. This study contributes to the literature on the impact of agricultural credit and enlightens policymakers in the design of agricultural credit models in developing countries, particularly Côte d'Ivoire.
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Wenbo Li, Bin Dan, Xumei Zhang, Yi Liu and Ronghua Sui
With the rapid development of the sharing economy in manufacturing industries, manufacturers and the equipment suppliers frequently share capacity through the third-party…
Abstract
Purpose
With the rapid development of the sharing economy in manufacturing industries, manufacturers and the equipment suppliers frequently share capacity through the third-party platform. This paper aims to study influences of manufacturers sharing capacity on the supplier and to analyze whether the supplier shares capacity as well as its influences.
Design/methodology/approach
This paper deals with conditions that the supplier and manufacturers share capacity through the third-party platform, and the third-party platform competes with the supplier in equipment sales. Considering the heterogeneity of the manufacturer's earning of unit capacity usage and the production efficiency of manufacturer's usage strategies, this paper constructs capacity sharing game models. Then, model equilibrium results under different sharing scenarios are compared.
Findings
The results show that when the production or maintenance cost is high, manufacturers sharing capacity simultaneously benefits the supplier, the third-party platform and manufacturers with high earnings of unit capacity usage. When both the rental efficiency and the production cost are low, or both the rental efficiency and the production cost are high, the supplier simultaneously sells equipment and shares capacity. The supplier only sells equipment in other cases. When both the rental efficiency and the production cost are low, the supplier’s sharing capacity realizes the win-win-win situation for the supplier, the third-party platform and manufacturers with moderate earnings of unit capacity usage.
Originality/value
This paper innovatively examines supplier's selling and sharing decisions considering manufacturers sharing capacity. It extends the research on capacity sharing and is important to supplier's operational decisions.
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This paper aims to focus on scrutinizing the economics of greenhouse gas (GHG) emissions in Vietnam's rice production sector.
Abstract
Purpose
This paper aims to focus on scrutinizing the economics of greenhouse gas (GHG) emissions in Vietnam's rice production sector.
Design/methodology/approach
Using surveyed data from household rice producers, the smallest available production scale, the author delves into the economics of GHG emissions, constructs a data-driven bottom-up marginal abatement cost curve for Vietnam’s rice production, and evaluates the impacts of carbon pricing on production outputs and GHG emissions.
Findings
The author’s estimates reveal that the average profit earned per tonne of GHG emissions is $240/tCO2. Notably, the profit earning per tonne of GHG emissions varies substantially across producers, indicating significant opportunities for improvement among low-efficiency producers. The analysis suggests that a reasonable carbon price would yield a modest impact on the national rice output. The quantitative analysis also reaffirms that the primary driver of GHG emissions in Vietnam’s rice production stems from non-energy inputs and industrial processes rather than the utilisation of energy inputs, emphasizing the importance of improving cultivation techniques.
Originality/value
This research is original.
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The purpose of this paper is to propose a framework for evaluating the relationship between China and Peru, drawing on dependency theory, against the backdrop of China’s explicit…
Abstract
Purpose
The purpose of this paper is to propose a framework for evaluating the relationship between China and Peru, drawing on dependency theory, against the backdrop of China’s explicit policies towards foreign direct investment. It seeks to transcend traditional interpretations of this relationship in the literature that focuses on China as either hegemon or a South–South partner to Latin American countries to highlight a more nuanced relationship.
Design/methodology/approach
The paper adopts a case study approach, focusing on China in Peru. The authors examine three areas of traditional, strategic and emerging industries drawing from Chinese national policies, reviewing these against characteristics of dependency: control of production, heterogeneity of actors, transfer of knowledge and delinking.
Findings
The authors find that Chinese foreign direct investment (FDI) in Peru demonstrates mixed motives and collectively operates as an ambiguous player. Chinese firms appear to be willing to work with various actors, but this engagement does not translate into a decolonial development alternative in the absence of a Peruvian political will to delink and Chinese willingness to actively transfer control of production and knowledge.
Originality/value
This paper contributes to existing literature on China in Latin America by evaluating Chinese outward FDI in Peru against China’s strategic aims in terms of a re-evaluation of dependency theory.
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Wenhua Liu, Zekai He and Qi Wang
This paper explores the relationship between state-led urbanization and primary industry development using the difference-in-differences (DiD) method.
Abstract
Purpose
This paper explores the relationship between state-led urbanization and primary industry development using the difference-in-differences (DiD) method.
Design/methodology/approach
The study uses the DiD method.
Findings
Exploiting county-city mergers during 2010–2018, the key strategy to expand the city outward and promote urbanization on the urban fringe by local government, the authors find that county-city mergers led to the growth of primary industry decline by 4.23%. The result can be explained by the loss of essential production factors, including land and labor used for farming. In addition, the negative effect is more pronounced for counties with more substantial manufacturing. The results indicate that urbanization in China relocates land and labor; however, it does not improve the efficiency of agricultural output.
Originality/value
This paper contributes to the understanding of urbanization and rural development from the perspective of the primary industry by showing production factor redistribution. Second, this study complements the literature on local government mergers.
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Nicolas Depetris Chauvin and Emiliano C. Villanueva
This study aims to provide a detailed characterization of Argentinean exporting wineries using a new rich firm-level data set to understand how capabilities and business…
Abstract
Purpose
This study aims to provide a detailed characterization of Argentinean exporting wineries using a new rich firm-level data set to understand how capabilities and business strategies differ among firms with different levels of involvement in the export market.
Design/methodology/approach
A survey was distributed among all wineries along all wine regions of Argentina; the 45-min questionnaire was answered by 230 wineries, a representative sample with a response rate of 26.3% of the total population of Argentinean wineries. The survey assessed the interaction between wineries’ dynamics and characteristics and their participation in export markets. In the comparative analysis, the results are presented by dividing the sample into four categories according to the export intensity of the wineries.
Findings
High-intensity exporting wineries in Argentina differ from other Argentinean wineries in several dimensions. In particular, the most internationalized Argentinean wineries are the most endowed with higher capabilities; they follow a specific business model emphasizing product differentiation, quality upgrading, brand building and the development of distribution channels. Exporting wineries from Argentina adopt business practices that differ from those that prevail among wineries that only target the domestic market. They have developed firm capabilities such as human capital and technology to play a critical role in quality upgrading for their participation in global wine markets.
Originality/value
To the best of the authors’ knowledge, this paper is the first to study the Argentinean exporting wineries using a firm-level sizeable representative sample.
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