Technical efficiency and expansion of lithuanian family farms (2004–2009): graph data envelopment analysis and rank-sum test

Type Journal Article - Management theory and studies for rural business and infrastructure development
Title Technical efficiency and expansion of lithuanian family farms (2004–2009): graph data envelopment analysis and rank-sum test
Author(s)
Volume 2
Issue 35
Publication (Day/Month/Year) 2012
Page numbers 25-35
URL http://vadyba.asu.lt/31/ManagKaunas_2(31).pdf#page=25
Abstract
The aim of this paper is to estimate the impact of the technical efficiency on farm expansion.
The research relies on the sample of the Lithuanian family farms operated throughout 2004–2009.
The graph DEA model was employed to estimate the efficiency scores, whereas the rank-sum test
was employed to test the relationships between efficiency and expansion variables. Farm expansion
was analyzed by considering multiple criteria. The rank-sum test indicated that the farms expanded
in terms of ESU and UAA were specific with lower efficiency during the preceding periods. Meanwhile,
labour input and assets were not related to different populations of efficiency scores. Therefore,
one can expect for decrease in efficiency given no managerial decisions are undertaken.

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