The techical efficiency of Turkish crop production: a comparison of data envelopment analysis and stochastic frontier analysis


ÇEKİÇ B. , MENTEN C. , ATICI K. B.

EURO 2018 - 29th European Conference on Operational Research, Valencia, Spain, 8 - 11 July 2018, pp.281

  • Publication Type: Conference Paper / Summary Text
  • City: Valencia
  • Country: Spain
  • Page Numbers: pp.281

Abstract

The growing dependence on agricultural production, the concerns about this dependency, and the growing consciousness between the manufacturing industry as well as the public and legislator have created the concept of sustainable agricultural production. The objective of sustainable agricultural production is to be able to process raw materials in balance with environmental, social, and financial systems. In terms of geographical and climate indicators, Turkey is one of the countries suitable for growing a wide range of agricultural products. The purpose of this study is to investigate the country-level technical efficiency scores in the 2009-2015 year of crop production in the Turkish agricultural sector by utilizing both Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA). In both analysis, 61 agricultural products were selected as decision-making units and the data covers the 6 years period. The agriculture sector has been selected as the field of application in terms of both the application of the DEA and SFA studies and the interpretability of the results to be obtained from the measurements. Given the strengths and weaknesses of these two approaches as DEA and SFA, efficiency measures and scale characteristics derived from these analyses are not always persuasive. In this study, we apply both approaches and compare the results obtained by using data from the balance tables of crop production at the Turkey-level technical efficiency scores