Factors and sources of the efficiency of Lithuanian family farms

2014-10-29
Factors and sources of the efficiency of Lithuanian family farms

The paper aims to identify the factors and sources of the Lithuanian family farm efficiency with respect to the neoclassical methodology. The sources of efficiency were analysed by the means of the multi-directional efficiency analysis. The latter technique facilitates benchmarking based on varying directions of projections towards the efficiency frontier. Therefore, the efficiencies associated with the inputs defining a production technology were estimated. The double bootstrap method was employed to estimate the bias-corrected efficiency scores along with the consistent coefficients of the truncated regression. The latter coefficients enable one to analyse the impact of the efficiency factors. The results did indicate that the asset efficiency was the lowest one across all farming types. This type of inefficiency might be related to excessive investments. Meanwhile, the low land use efficiency has been induced by the agricultural support policies (e.g. direct payments) as well as land market distortions. Indeed, the relative land use efficiency increased under the constant returns to scale thus implying that other production factors become even less efficient as the farms size deviates from the optimum. As for the efficiency factors, the truncated regression suggested that time trend, farm size, and the ratio of assets to labour input had a positive impact upon the efficiency.

Key words: efficiency, family farms, data envelopment analysis, activity analysis.

Baležentis, T.; Kriščiukaitienė, I. 2014. Lietuvos ūkininkų ūkių efektyvumo veiksniai ir šaltiniai, Žemės ūkio mokslai 21(3): 191-200. ISSN 1392-0200.DOI: http://dx.doi.org/10.6001/zemesukiomokslai.v21i3.2969. [Central & Eastern European Academic Source nuo 2007 (EBSCO sąrašas) CAB Abstracts nuo 2002, 3; (paieška) visas tekstas nuo 2009 (sąrašas)].

DOI: http://dx.doi.org/10.6001/zemesukiomokslai.v21i3.2969