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Productivity improvement in Korean rice farming: parametric and non‐parametric analysis †
Author(s) -
Kwon Oh Sang,
Lee Hyunok
Publication year - 2004
Publication title -
australian journal of agricultural and resource economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 1364-985X
DOI - 10.1111/j.1467-8489.2004.00240.x
Subject(s) - parametric statistics , productivity , econometrics , production (economics) , panel data , data envelopment analysis , nonparametric statistics , parametric model , production–possibility frontier , technical change , estimation , malmquist index , agriculture , agricultural productivity , mathematics , economics , total factor productivity , statistics , geography , macroeconomics , archaeology , management
The published empirical literature on frontier production functions is dominated by two broadly defined estimation approaches – parametric and non‐parametric. Using panel data on Korean rice production, parametric and non‐parametric production frontiers are estimated and compared with estimated productivity. The non‐parametric approach employs two alternative measures based on the Malmquist index and the Luenberger indicator, while the parametric approach is closely related to the time‐variant efficiency model. Productivity measures differ considerably between these approaches. It is discovered that measures of efficiency change are more sensitive to the choice of the model than are measures of technical change. Both approaches reveal that the main sources of growth in Korean rice farming have been technical change and productivity improvements in regions of the country that have been associated with low efficiency.