Technical Efficiency of Chinese Cabbage Farm in Cameron Highland Malaysia

Alias Radam (), Mohd Ariff Hussein, Hairuddin Mohd Amin and Mad Nasir Shamsudin

The IUP Journal of Agricultural Economics, 2007, vol. IV, issue 4, 7-19

Abstract: The paper analyzes the components of technical efficiency in the production of Chinese cabbage in Cameron Highland Malaysia by using the linear programming approach. Results showed that on an average, the Chinese cabbage farms in Cameron Highland Malaysia could have increased their output by as much as 51.7%, if operating with overall technical efficiency. Pure efficiency component was found to be the primary source of technical inefficiency in farm operation followed by scale efficiency and congestion efficiency. Output could have increased by 37.5% and 12.0% respectively had the farms been operating with pure technical efficiency and at constant returns to scale. This study concludes that cabbage output could have increased significantly had the inputs been used at optimal levels.

Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:icf:icfjag:v:04:y:2007:i:4:p:7-19

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