Technological Change and Technical Efficiency for Diary Farms in Three Countries of South America

The progressive liberalization of agricultural markets, along with the threat that imported products can pose to local producers, reveals the importance of productivity growth as a mechanism to improve competitiveness. Technical efficiency measurement is the most studied component of productivity be...

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Autores principales: Bravo-Ureta,Boris E, Moreira,Víctor H, Arzubi,Amilcar A, Schilder,Ernesto D, Álvarez,Jorge, Molina,Carlos
Lenguaje:English
Publicado: Instituto de Investigaciones Agropecuarias, INIA 2008
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spelling oai:scielo:S0718-583920080004000062018-10-01Technological Change and Technical Efficiency for Diary Farms in Three Countries of South AmericaBravo-Ureta,Boris EMoreira,Víctor HArzubi,Amilcar ASchilder,Ernesto DÁlvarez,JorgeMolina,Carlos stochastic frontiers dairy farms Argentina Chile Uruguay The progressive liberalization of agricultural markets, along with the threat that imported products can pose to local producers, reveals the importance of productivity growth as a mechanism to improve competitiveness. Technical efficiency measurement is the most studied component of productivity because it can help to generate valuable information for policy formulation and farm level decisions focused on the improvement of farm performance. This study uses unbalanced panel data sets for dairy farms from Argentina, Chile and Uruguay, to estimate stochastic production frontier models. These frontiers are then used to estimate economies of size, technological change and technical efficiency. All estimations are based on the Battese and Coelli (1992) model, which is widely used in empirical productivity studies. The models for all three countries exhibit increasing returns to scale, which suggests that the dairy farms in the samples are operating at a sub-optimal size. The average annual rate of technological change for Argentina was 0.9%, for Chile 2.6% and for Uruguay 6.9%, while average technical efficiency was 87.0%, 84.9% and 81.1%, respectively.info:eu-repo/semantics/openAccessInstituto de Investigaciones Agropecuarias, INIAChilean journal of agricultural research v.68 n.4 20082008-12-01text/htmlhttp://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-58392008000400006en10.4067/S0718-58392008000400006
institution Scielo Chile
collection Scielo Chile
language English
topic stochastic frontiers
dairy farms
Argentina
Chile
Uruguay
spellingShingle stochastic frontiers
dairy farms
Argentina
Chile
Uruguay
Bravo-Ureta,Boris E
Moreira,Víctor H
Arzubi,Amilcar A
Schilder,Ernesto D
Álvarez,Jorge
Molina,Carlos
Technological Change and Technical Efficiency for Diary Farms in Three Countries of South America
description The progressive liberalization of agricultural markets, along with the threat that imported products can pose to local producers, reveals the importance of productivity growth as a mechanism to improve competitiveness. Technical efficiency measurement is the most studied component of productivity because it can help to generate valuable information for policy formulation and farm level decisions focused on the improvement of farm performance. This study uses unbalanced panel data sets for dairy farms from Argentina, Chile and Uruguay, to estimate stochastic production frontier models. These frontiers are then used to estimate economies of size, technological change and technical efficiency. All estimations are based on the Battese and Coelli (1992) model, which is widely used in empirical productivity studies. The models for all three countries exhibit increasing returns to scale, which suggests that the dairy farms in the samples are operating at a sub-optimal size. The average annual rate of technological change for Argentina was 0.9%, for Chile 2.6% and for Uruguay 6.9%, while average technical efficiency was 87.0%, 84.9% and 81.1%, respectively.
author Bravo-Ureta,Boris E
Moreira,Víctor H
Arzubi,Amilcar A
Schilder,Ernesto D
Álvarez,Jorge
Molina,Carlos
author_facet Bravo-Ureta,Boris E
Moreira,Víctor H
Arzubi,Amilcar A
Schilder,Ernesto D
Álvarez,Jorge
Molina,Carlos
author_sort Bravo-Ureta,Boris E
title Technological Change and Technical Efficiency for Diary Farms in Three Countries of South America
title_short Technological Change and Technical Efficiency for Diary Farms in Three Countries of South America
title_full Technological Change and Technical Efficiency for Diary Farms in Three Countries of South America
title_fullStr Technological Change and Technical Efficiency for Diary Farms in Three Countries of South America
title_full_unstemmed Technological Change and Technical Efficiency for Diary Farms in Three Countries of South America
title_sort technological change and technical efficiency for diary farms in three countries of south america
publisher Instituto de Investigaciones Agropecuarias, INIA
publishDate 2008
url http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-58392008000400006
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