Meta-regression Analysis of Technical (In)Efficiency in Agriculture: a Regional Approach

Micael Santos, Ana Marta-Costa and Xosé A. Rodríguez

MPRA Paper from University Library of Munich, Germany

Abstract: While scientific studies have not reached a consensus on the methodology for examining Technical Efficiency (or Inefficiency), the influence of regions appears to be important for efficiency scores. Therefore, this research aims to investigate the empirical procedures for the achievement of more robust results in the analysis of productive efficiency, as well as to evaluate the effect of the location of farms on such efficiency. The goal was to check whether the most developed regions are the most efficient. Meta-regression analy sis provides an adequate method for an accurate assessment of both situations. This technique was applied based on a database of 166 observations on the agricultural sector from countries around the world, pub lished in the period 2010–2017. The criteria used for the database collection and for the conceived model were not previously used and, thereby, enrich the discussion on the topic. The procedure aims to check the variation in the Mean of Technical Inefficiency and conduct an analysis using Quasi-Maximum Likelihood Estimation. The regressions showed that the Mean of Technical Inefficiency could be mainly explained by data, variables, employed empirical models and the region of study. The studies that focus on farms of devel oped countries present the lowest Mean of Technical Inefficiency, while studies for developing or low-income countries exhibit the opposite. Therefore, for future research on productive analysis, we suggest empirical procedures aimed at achieving robust results that take into account specific regional characteristics of farms.

Keywords: agriculture, technical efficiency, farms inefficiency, meta-regression, parametric and non-parametric methods; regional analysis (search for similar items in EconPapers)
JEL-codes: D00 D20 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:128915

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