Comparative Analysis of Efficiencies of Smallholder Rubber Farmers in Peninsular Malaysia: Conventional and Data Envelopment Analysis Models
Abstract
The main aim of this paper was to compare the technical and scale efficiencies of smallholder rubber farmers in Malaysia using Conventional and Bootstrapped –Data Envelopment Analysis Models. Multistage sampling technique was used to select 206 rubber farmers for the study, while data were collected from them using well-structured questionnaire. Under the CDEA model, 128 farmers were technically efficient in variable returns to scale, while 11 were both technically and scale efficient in constant returns to scale. Findings revealed that, using CDEA, 128 farms were found to be technically efficient under variable returns to scale (VRS), 11 farms were both technically and scale efficient under constant returns to scale (CRS). Under BDEA model, 77 farmers were technically efficient in variable returns to scale (VRS). Factors that affected the efficiency of the farmers include; race, marital status, tapping system and farms’ distance. It is therefore recommended to apply BDEA model in measuring technical efficiencies as this helps to give robust results. Also, more emphasis should be given in tapping system such as half spiral and alternate days tapping systems, and the smallholders distance away from his/her farms.
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