EFFICIENCY GAINS DUE TO ECONOMIES OF SCOPE AND SCALE

Saleem Shaik, Kwame Addey and Osei Yeboah

No 252790, 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama from Southern Agricultural Economics Association

Abstract: Using a non-parametric linear programming approach, our contribution is (1) to examine if efficiency gains are realized due to diversification and (2) to demonstrate the diversification efficiency gains realized is a product of economies of scope efficiency gains and scale efficiency gains employing U.S. cropping sector made up of nine major crops for the period, 1975-1996. Results indicate efficiency gains are realized due to diversification for all the two-crop combinations. Further the average diversification efficiency gains are explained by scope efficiency gains and scale efficiency gains, with the t-test at the 5% level of significance indicates the mean diversification efficiency gains, scope efficiency gains and scale efficiency gains (with exceptions) are significantly different from one.

Keywords: Production Economics; Productivity Analysis; Research Methods/Statistical Methods; Risk and Uncertainty (search for similar items in EconPapers)
Date: 2017-01-18
New Economics Papers: this item is included in nep-eff
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Persistent link: https://EconPapers.repec.org/RePEc:ags:saea17:252790

DOI: 10.22004/ag.econ.252790

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