Technical Efficiency and It’s Determinants on Korean Rice Farmers
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This study examines the technical efficiency of Korean rice farms from 2013 to 2017 using the Korean Farm Household Economic Survey. We employ the true fixed/random effect model to estimate the technical efficiency. In addition, we examine the determinants of their technical efficiency by considering the households of rice farmers and the regional characteristics of rice production. The empirical analysis reveals that rice production in South Korea exhibited an increasing return to scale from 2013 to 2017. Secondly, among the four input variables, labor input exhibits the largest elasticity, and the size of the elasticity remains similar, despite some variables such as land and intermediate costs having a very small negative effect on rice production. Thirdly, the results of the technical efficiency factor indicate that full-time work, education level, being male, and higher age positively influence rice farm technical efficiency. Conversely, factors such as the debt ratio, share of agricultural subsidies, share of non-farm revenue, and family size have a negative impact on rice farm technical efficiency. Lastly, an analysis of technical efficiency in three regions with similar rice yields shows that the average technical efficiency of rice farms is 0.964. This implies that rice farmers could increase production by 3.6% using the same inputs. Furthermore, the North and South regions exhibit higher technical efficiency compared to rice farmers in the Central region. These results suggest that it is necessary for policymakers to focus on improving access to labor, education, and credit for rice farmers. In addition, encouraging full-time farming and targeting support for younger or male farmers might be beneficial to improving the technical efficiency of rice farms. Regional disparities in efficiency also imply that tailored support programs could be effective. rice farms.
Abstract
This study examines the technical efficiency of Korean rice farms from 2013 to 2017 using the Korean Farm Household Economic Survey. We employ the true fixed/random effect model to estimate the technical efficiency. In addition, we examine the determinants of their technical efficiency by considering the households of rice farmers and the regional characteristics of rice production. The empirical analysis reveals that rice production in South Korea exhibited an increasing return to scale from 2013 to 2017. Secondly, among the four input variables, labor input exhibits the largest elasticity, and the size of the elasticity remains similar, despite some variables such as land and intermediate costs having a very small negative effect on rice production. Thirdly, the results of the technical efficiency factor indicate that full-time work, education level, being male, and higher age positively influence rice farm technical efficiency. Conversely, factors such as the debt ratio, share of agricultural subsidies, share of non-farm revenue, and family size have a negative impact on rice farm technical efficiency. Lastly, an analysis of technical efficiency in three regions with similar rice yields shows that the average technical efficiency of rice farms is 0.964. This implies that rice farmers could increase production by 3.6% using the same inputs. Furthermore, the North and South regions exhibit higher technical efficiency compared to rice farmers in the Central region. These results suggest that it is necessary for policymakers to focus on improving access to labor, education, and credit for rice farmers. In addition, encouraging full-time farming and targeting support for younger or male farmers might be beneficial to improving the technical efficiency of rice farms. Regional disparities in efficiency also imply that tailored support programs could be effective. rice farms.
참고문헌 (24)
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