Technical Efficiency Analysis of Top Agricultural Producing Countries in Asia: Zero Inefficiency Stochastic Frontier Approach
Agriculture plays an overwhelmingly important role in the overall economic scenario in the top agricultural producing countries in Asia. This study analyzes the agricultural productivity and technical efficiency through examining agricultural performance in top twelve agricultural producing countries listed as China, India, Indonesia, Pakistan, Thailand, Vietnam, Bangladesh, Philippines, Myanmar, Japan, Malaysia, and Korea Republic. Zero inefficiency stochastic frontier model is applied as an econometric approach based on time series data of the twelve Countries mentioned above from 1961 to 2013. This study reveals that ZISFM could successfully estimate technical efficiency of both efficient and inefficient firms while the traditional SFM assumes that all of firms are inefficient. Moreover, the sampled countries are close enough to production frontier but they still have room to improve technical efficiency and productivity. Thus, technology improvement and knowledge diffusion might enhance agricultural technical efficiency and productivity.
Keywords- Technical Efficiency, Agricultural Productivity, Zero Inefficiency Stochastic Frontier Approach, Top Agricultural Producing Countries In Asia.