Potential improvement of agricultural output for major producers based on dea efficiency measurements

Abstract

In this article we perform production efficiency analysis for the 40 countries with largest value added by agricultural sector in 2005. Under the assumption of a nonparametric frontier and production observations satisfying a statistical model including both random and inefficiency errors, we estimate an agricultural production function using DEA measures of efficiency with output orientation and variable returns to scale. We found evidence that the set of countries investigated could increase their total value added by agricultural sector for at least 53.9% without increasing input usage with the prevailing technology. This result has a direct impact on issues related to the recent food crisis.

A Performance Study on the Potential Improvement of Construction Sector Companies in Malaysia

“…The banking sector has been be the topic of the most studies using DEA to gauge effectiveness based on the past studies [7][8][9][10][11]. Application of DEA to measure efficiency in other sectors such as agricultural sector, food sector, healthcare sector, education sector and many other sectors in Malaysia as well as other countries had been done by the previous studies [12][13][14][15][16][17][18][19][20]. It is essential to comprehend the efficiency of the construction sector as it makes a significant contribution to Malaysia's economic development, hence this study is aimed to obtain the efficiency of construction sector in Malaysia, together with the potential improvement of each company.…”