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Technical Efficiency in Chilean Agribusiness Industry: A Metafrontier Approach

Sebastian Lakner, Thelma Brenes‐Muñoz and Bernhard Brümmer

Agribusiness, 2017, vol. 33, issue 3, 302-323

Abstract: ABSTRACT This study models the technical efficiency in the Chilean agribusiness industry between 2001 and 2007 by taking into consideration the structural differences between the different subsectors meat, fruit & vegetables, dairy, milling, and bakery. We analyze firm data from the Annual National Industrial Survey (ENIA) totaling 2,940 observations using a stochastic frontier model combined with a metafrontier model. We observe dynamic developments in the subsectors meat, fruit & vegetables, and dairy, with a pronounced export‐orientation. We show that especially meat and fruit & vegetables firms have experienced positive technological change, whereas dairy firms are exhibiting a slight decrease in efficiency and technical change. The milling and bakery subsectors, which mainly produce for the domestic market, show a rather constant status in efficiency and technical change. The results confirm that an in‐depth analysis of subsectors is necessary to evaluate the competitiveness of the agribusiness industry in Chile. [EconLit citations: D24; Q13].

Date: 2017
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