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Technical efficiency and decision to exit: evidence from the dairy farms in Sukabumi district, West Java, Indonesia

Maman Setiawan ()

World Review of Entrepreneurship, Management and Sustainable Development, 2019, vol. 15, issue 4, 428-440

Abstract: This research investigates technical efficiency and its effect on the decision to exit of the dairy farms in Sukabumi district, West Java, Indonesia. Farm-level data obtained from survey are used to estimate the technical efficiency using a bootstrapped data envelopment analysis. The results show that dairy farms in Sukabumi are technically inefficient. The technical efficiency also has a negative effect on the decision to exit. This implies that the dairy farms with higher technical efficiency scores tend to have lower probabilities to exit from the business.

Keywords: dairy farms; technical efficiency; bootstrapped data envelopment analysis; decision to exit. (search for similar items in EconPapers)
Date: 2019
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