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Technical efficiency and spatial spillovers: Evidence from grain marketing cooperatives in the US Midwest
Author(s) -
Skevas Theodoros,
Grashuis Jasper
Publication year - 2019
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/agr.21617
Subject(s) - econlit , spillover effect , data envelopment analysis , economics , econometrics , industrial organization , spatial dependence , microeconomics , marketing , business , statistics , mathematics , medline , political science , law
To date, no study has investigated the role of spatial spillovers in the technical efficiency of farmer cooperatives. This study addresses this issue by employing a two‐stage approach, first measuring cooperatives' technical efficiency using a Data Envelopment Analysis (DEA) model and secondly using a bootstrap truncated regression to identify the effect of spatial spillovers and cooperative firm‐level characteristics on technical efficiency. The empirical application focuses on grain marketing cooperatives in the Midwest region of the United States, and shows that spatial spillover effects influence the technical efficiency of neighboring cooperatives. Technical efficiency is also found to be influenced by several cooperative firm‐level characteristics including age, liquidity, differentiation, and membership size. [EconLit citations C21, Q13, R3].