Technical Efficiency of Paddy Farming in the East Coast of Peninsular Malaysia
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Date
2016
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Biology, Agriculture and Healthcare
Abstract
The KADA and IADA KETARA are among important granary areas in Peninsular Malaysia producing paddy for
domestic consumption. Both granaries are located in the East Coast of Peninsular Malaysia and involved with the
new paddy scheme introduced by the Malaysian Government in 2008 during the world food crisis. This research
was conducted to determine the best granary area in terms of technical efficiency (TE) based on two methods;
Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA). The study involved interviewing with
148 paddy farmers using open and close ended questionnaires and the respondents were randomly chosen. The
results showed that based on DEA indicator, IADA KETARA recorded the highest TE which is 0.90 while KADA
obtained only 0.61. Based on SFA indicator, IADA KETARA indicated 0.84 TE while KADA, 0.67. The results
consistently showed the TE scores estimated under DEA (TE-vrs) and SFA methodologies for IADA KETARA
is greater than KADA and they are statistically significant at 5% level in both areas. Thus, it can be concluded that
IADA KETARA are the best managed paddy farms in terms of technical efficiency compared to KADA.
Description
Keywords
Technical efficiency, Paddy granary areas, Data Envelopment Analysis, Stochastic Frontier Analysis
Citation
Vol.6 (16) ; 84-89 p.