Economic and social efficiencies of selected area farmer organizations in Malaysia
To fulfill highly expectations of the government and to retain continuous supports from the members, farmer's organization is anticipated to be an efficient organization. In order to remain relevant, the organization needs to perform like other co-operative organizations where economic and s...
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| Autor principal: | |
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| Formato: | Thesis |
| Idioma: | English |
| Publicado em: |
2013
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| Acesso em linha: | http://ethesis.upm.edu.my/id/eprint/14028/1/FEP%202013%2010%20t.pdf |
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| Resumo: | To fulfill highly expectations of the government and to retain continuous
supports from the members, farmer's organization is anticipated to be an
efficient organization. In order to remain relevant, the organization needs to
perform like other co-operative organizations where economic and social
performance becomes crucially important. This implies the needs for adequate
measures in both areas of interests and the evaluation is supposed to portray
their overall performances.
Hence, one way to measure the ability of an organization is through efficiency
measurement. Therefore, this paper examines the technical efficiency (TE) of
Area Farmers Organization (AFOs) and determinant factors of efficiency for five
years period; from 2006 to 2010. The efficiency is measured through three
different dimensions namely as economic dimension, social dimension and
socio-economic dimension. For the purpose of the study, a two stage Data
Envelopment Analysis (DEA) is used.
In the first stage, DEA applied to measure the efficiency score of 56 AFOs. In
the second stage, the efficiency score obtained and regressed by using Tobit
model. Based on previous study, determinant factors such as assets, location,
year of operation, types of business, manager's education, size of business and
size of membership serve as independent variables. For complimentary, the
Malmquist Productivity Index (MPI) is employed to measure productivity. The efficiency analysis in the study reveals most of the AFOs are plagued with
inefficiency and experienced of productivity regression. The average technical
efficiency scores recorded at 0.708, 0.672 and 0.790 under economic, social
and socio-economic dimensions respectively. Meanwhile The Total Factor
Productivity (TFP) score of less than one reflect the decline in productivity
growth. The average TFP recorded as 0.981 under economic dimension, 0.975
under social dimension and 0.9T/ under socio-economic dimensions.
From MPI result, AFOs need to improve 8.5% scale efficiency under economic
whereas 11.85% and 11.45% technology change under social and socioeconomic
respectively. As for determinant factors, the variables liked location,
age of operation, size of business and membership are found to have a positive
relationship with efficiency level. |
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