Influence of the size of the agricultural holding on technical and scale efficiency

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00027251%3A_____%2F19%3AN0000017" target="_blank" >RIV/00027251:_____/19:N0000017 - isvavai.cz</a>

Result on the web

<a href="https://ap.pef.czu.cz/en/r-12195-news/agrarian-perspectives-xxvi-call-for-papers-1.html" target="_blank" >https://ap.pef.czu.cz/en/r-12195-news/agrarian-perspectives-xxvi-call-for-papers-1.html</a>

DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Influence of the size of the agricultural holding on technical and scale efficiency

Original language description

It is assumed that larger size of the firm can bring competitive advantages resulting from economies of scale, higher innovation potential due to capital strength etc. The paper focuses on the efficiency of production of agricultural holdings and calculates technical, pure technical and scale efficiency. The aim is to find out whether the size of the agricultural holding measured in terms of the acreage of agricultural land influence the technical and scale efficiency of the farm. A non-parametric Data Envelopment Analysis is used. Particularly was chosen input oriented BCC model which assumes variable returns to scale. Differences in technical, pure technical and scale efficiency were tested by non-parametric Kruskall-Wallis test. Accounting data were obtained from Albertina database and data about acreage from Land Parcel Information System. The most technically efficient were according to the expectation large farms (from 74.35%), then medium (69.79%) and small (57.56%). Similarly, the highest pure efficiency of production was noted in large farms (82.88%). Pure efficiency in middle farms (73.97%) and in small farms (73.14%) was almost similar. Regarding the scale efficiency, middle farms were the best with 94.68%. Surprisingly large farms were efficient only from 90.11%. Small farms had again the lowest scale efficiency (79.14%). All differences were statistically significant. There were also the most 100% technically efficient firms in category of “large” farms (8 farms 100% technically efficient, 26 farms 100% pure technically efficient and 8 farms 100% scale efficient). Theoretical assumption about higher technical and pure technical efficiency of larger companies and agricultural holdings was confirmed by our study. However, scale efficiency was higher in middle-sized firms than in large companies. It might be due to the fact that there were the most farms exhibiting decreasing returns to scale in “large” category, so the scale of their operation is above optimum.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50202 - Applied Economics, Econometrics

Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2019

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

Agrarian perspectives XXVIII. Business Scale in Relation to Economics

ISBN

978-80-213-2973-7

ISSN

2464-4781

e-ISSN

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Number of pages

7

Pages from-to

305-311

Publisher name

Czech University of Life Sciences Prague

Place of publication

Praha

Event location

Praha

Event date

Sep 18, 2019

Type of event by nationality

WRD - Celosvětová akce

UT code for WoS article

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