A TWO-STAGE DEA MODEL TO EVALUATE AGRICULTURAL EFFICIENCY IN CASE OF SERBIAN DISTRICTS

Authors

DOI:

https://doi.org/10.5937/ekoPolj1904965M

Keywords:

Efficiency analysis, Agriculture, Two-stage DEA, Tobit Regression, districts of Serbia

Abstract

Since the efficient agricultural sector is one of the most important drivers of countrys economic development, the main objective of this paper was to examine relative technical efficiency of agricultural production in 25 Serbian districts using two-stage data envelopment analysis. Results of this research indicate that the efficiency score values lie between 70% and 100%, therefore it can be concluded that the agricultural sector of Serbia performs at a high level of efficiency, with the average efficiency score of 90%. The lowland region of Vojvodina is characterized with the highest efficiency scores, while districts in the southeastern part of Serbia have the lowest efficiency score values. Furthermore, the Tobit regression model was applied that one may examine the drivers of technical efficiency scores. The results show the significance of agricultural training among farm managers, land irrigation and age of farm holders in altering agricultural efficiency among Serbian districts.

Downloads

Download data is not yet available.

References

1. Bagchi, M., Rahman, S., & Shunbo, Y. (2019). Growth in Agricultural Productivity and Its Components in Bangladeshi Regions (1987–2009): An Application of Bootstrapped Data Envelopment Analysis (DEA). Economies, 7(2), 1-16. DOI: 10.3390/economies7020037
2. Banker R.D., Charnes A., Cooper W.W. (1984). Some models for estimating technical and scale ineffciencies in data envelopment analysis. Management Science, 30(9), 1078–1092.
3. Bojnec S., Ferto I., Jambor A., & Toth J. (2012). Determinants of technical efficiency in agriculture in New EU Member States from Central and Eastern Europe. Acta Oeconomica, 64(2), 197-217. doi:10.1556/AOecon.64.2014.2.4
4. Ciric, Z., Stojic, D., Sedlak, O., Marcikic Horvat, A., Kleut, Z. (2019). Innovation Model of Agricultural Technologies Based on Intuitionistic Fuzzy Sets. Sustainability 2019, 11(19), 5457; https://doi.org/10.3390/su11195457
5. Fazekaš, T.; Bobera, D.; Ćirić, Z. (2017). Ecologically and Economically Sustainable Agricultural Transportation Based on Advanced Information Technologies. Economics of Agriculture, 64(2), 739–750. https://doi.org/10.5937/ekoPolj1702739F
6. Galluzzo N. (2017). Effciency Analysis in Different Typologies of Farming in Italian FADN Dataset. Economics of Agriculture, 64(2), 451-466.
7. Ghaderi, Z., Menhaj, M. H., Kavoosi-Kalashami, M., & Sanjari, S. M. (2019). Effciency analysis of traditional tea farms in Iran. Economics of Agriculture, 66(2), 423-436. doi:10.5937/ekoPolj1902423G
8. Greene, W.H. (2003). Econometric Analysis: Fifth Edition. Prentice Hall, New Jersey
9. Hoff, A. (2007). Second Stage DEA: Comparison of Approaches for Modeling the DEA Score. European Journal of Operational Research, 181(1), 425-435.
10. Idris, N.D.M., Siwar, C., & Talib, B. (2013). Determinants of Technical Efficiency on Pineapple Farming. American Journal of Applied Sciences, 10(4), 426-432.
11. Ilić, I., & Petrevska, I. (2018). Using DEA method for determining tourism efficiency of Serbia and the surrounding countries. Hotel and Tourism Management, 6(1), 73- 80. doi: 10.5937/menhottur1801073I
12. Kocisova K. (2015). Application of the DEA on the measurement of efficiency in the EU countries. Agricultural Economics – Czech, 61(2), 51-62. doi:10.17221/107/2014-AGRICECON
13. Lekic N., Savic G., Knezevic S., & Mitrovic A. (2018). The efficiency analysis in small wineries in the Republic of Serbia. Economics of Agriculture, 65(4), 1529- 1544. doi:10.5937/ekoPolj1804529L
14. McDonald, J. (2009). Using Least Squares and Tobit in Second Stage DEA Analysis. European Journal of Operational Research, 197(2), 792-798.
15. Moreno-Moreno J., Velasco Morente F., & Sanz Díaz M.T. (2018). Assessment of the operational and environmental efficiency of agriculture in Latin America and the Caribbean. Agric. Econ. – Czech, 64(2), 74-88.
16. Nowak, A., Kijek, T., & Domanska, K. (2015). Technical Efficiency and Its Determinants in the European Union Agriculture. Agricultural Economics, 61(6), 275-283.
17. Pang J., Chen X., Zhang Z., & Li H. (2016). Measuring Eco-Efficiency of Agriculture in China. Sustainability, 8(4), 398; doi.org/10.3390/su8040398
18. Popovic R., & Panic D. (2018). Technical efficiency of Serbian dairy processing industry, Economics of Agriculture, 65(2), 569-581. doi:10.5937/ekoPolj1802569P
19. Raheli, H., Rezaei, R.M., Jadidi, M.R., & Mobtaker, M.B. (2017). A Two-Stage DEA Model to Evaluate Sustainability and Energy Efficiency of Tomato Production. Information Processing in Agriculture, 4(4), 342-350.
20. Ray, S. (1988). Data Envelopment Analysis, Nondiscretionary Inputs and Efficiency: An Alternative Interpretation. Socio-Econ. Plann. Sci., 22(4), 167-176.
21. Saiyut, P., Bunyasiri, B., Sirisupluxana, P., & Mahathanaseth, I. (2017). The Impact of Age Structure on Technical Efficiency in Thai Agriculture. Kasertsat Journal of Social Sciences, 1(2017), 1-7.
22. Shanmugam, K., & Ventkataramani, A. (2006). Technical Efficiency in Agricultural Production and Its Determinants: An Exploratory Study at the District Level. Indian Journal of Agricultural Economics, 61(2), 169-184.
23. Silva, A.V., Costa M.A., Lopes, A.L.M., & Carmo, G.M. (2019). A Close Look at Second Stage Data Envelopment Analysis Using Compound Error Models and the Tobit Model. Socio-Economic Planning Sciences, 65(2019), 111-126.
24. Spicka J. (2014). The regional efficiency of mixed crop and livestock type of farming and its determinants. Agris On-line Papers in Economics and Informatics, 6(1), 99–109.
25. Statistical Office of the Republic of Serbia, Retrieved from http://www.stat.gov.rs/ (September 1, 2019)
26. Toma, E., Dobre, C., Dona, I., & Cofas, E. (2015). DEA Applicability in Assessment of Agriculture Efficiency on Areas with Similar Geographically Patterns. Agriculture and Agricultural Science Procedia, 6(2015), 704-711. doi:10.1016/j.aaspro.2015.08.127.
27. Yan L. (2019). Evaluation of Operating Efficiency of Agricultural Listed Enterprises Based on DEA-Tobit Two Stage Model. Advances in Intelligent Systems Research - Proceedings of the 2019 International Conference on Modeling, Analysis, Simulation Technologies and Applications (MASTA 2019), 168: 47-53. Retrieved from https://www.atlantis-press.com/proceedings/masta-19/125913191
28. You H. & Zhang X. (2016). Ecoefficiency of Intensive Agricultural Production and Its Influencing Factors in China: An Application of DEA-Tobit Analysis. Discrete Dynamics in Nature and Society, 5(2016), 1-14, doi:10.1 155/2016/478609
29. Yuya, B. (2014). Comparative Analysis of Technical Efficiency of Smallholder Irrigated and Rain-fed Farm Production. Journal of Agricultural Economics, Extensions and Rural Development, 2(5), 52-62.
30. Zamanian Gh.R., Shahabinejad V. & Yaghoubi M. (2013). Application of DEA and SFA on the measurement of agricultural technical efficiency in MENA1 Countries. International Journal of Applied Operational Research, 3(2), 43–51.

Downloads

Published

2019-12-25

How to Cite

Marcikić Horvat, A., Radovanov, B., H. Popescu, G., & Panaitescu, C. (2019). A TWO-STAGE DEA MODEL TO EVALUATE AGRICULTURAL EFFICIENCY IN CASE OF SERBIAN DISTRICTS. Economics of Agriculture, 66(4), 965–974. https://doi.org/10.5937/ekoPolj1904965M

Issue

Section

Original scientific papers