Parametric And Non-Parametric Techniques In Estimating Technical Efficiency Of Crude Palm Oil Production In Malaysia

The main purpose of this study is to apply parametric and non-parametric techniques in evaluating the technical efficiency (TE) of crude palm oil (CPO) production by the states in Malaysia. To achieve this, the parametric stochastic frontier analysis (SFA) approach as well as the non-parametric data...

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Main Author:	Sabar, Mariah
Format:	Thesis
Language:	English
Published:	2019
Subjects:	QA1 Mathematics (General)
Online Access:	http://eprints.usm.my/48165/1/MARIAH%20BINTI%20SABAR%20cut.pdf
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id	my-usm-ep.48165
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spelling	my-usm-ep.481652021-01-22T00:45:21Z Parametric And Non-Parametric Techniques In Estimating Technical Efficiency Of Crude Palm Oil Production In Malaysia 2019-05 Sabar, Mariah QA1 Mathematics (General) The main purpose of this study is to apply parametric and non-parametric techniques in evaluating the technical efficiency (TE) of crude palm oil (CPO) production by the states in Malaysia. To achieve this, the parametric stochastic frontier analysis (SFA) approach as well as the non-parametric data envelopment analysis (DEA) and stochastic data envelopment analysis (SDEA) methods were applied. This study involves a panel data consisting of 12 CPO producing states in Malaysia, over a 18 year time period from year 1999 to 2016. The output variable chosen was the annual CPO production and the input variables considered were plantation area, fruit mill capacity, labour and time variable. We found fruit mill capacity, labour and time as input variables that significantly affect the level of CPO output. Plantation area was proven to be statistically insignificant. Technical efficiency was found to be increasing over time. It was also found that the inefficiencies in the industry were mainly caused by ‘pure’ technical inefficiency rather than scale inefficiency. The outputs produced from SFA, DEA and SDEA were compared. The overall mean TE of SFA, DEA and SDEA are 0.79, 0.88 and 0.97 respectively. It was found that DEA produced efficiency values that have weak positive correlation to both the efficiency scores produce from SFA and SDEA. Meanwhile, the results from SFA and SDEA were uncorrelated. We discovered that the choice of technique in efficiency measurement greatly influences the efficiency values estimated and the efficiency rankings of the states. 2019-05 Thesis http://eprints.usm.my/48165/ http://eprints.usm.my/48165/1/MARIAH%20BINTI%20SABAR%20cut.pdf application/pdf en public masters Universiti Sains Malaysia Pusat Pengajian Sains Matematik
institution	Universiti Sains Malaysia
collection	USM Institutional Repository
language	English
topic	QA1 Mathematics (General)
spellingShingle	QA1 Mathematics (General) Sabar, Mariah Parametric And Non-Parametric Techniques In Estimating Technical Efficiency Of Crude Palm Oil Production In Malaysia
description	The main purpose of this study is to apply parametric and non-parametric techniques in evaluating the technical efficiency (TE) of crude palm oil (CPO) production by the states in Malaysia. To achieve this, the parametric stochastic frontier analysis (SFA) approach as well as the non-parametric data envelopment analysis (DEA) and stochastic data envelopment analysis (SDEA) methods were applied. This study involves a panel data consisting of 12 CPO producing states in Malaysia, over a 18 year time period from year 1999 to 2016. The output variable chosen was the annual CPO production and the input variables considered were plantation area, fruit mill capacity, labour and time variable. We found fruit mill capacity, labour and time as input variables that significantly affect the level of CPO output. Plantation area was proven to be statistically insignificant. Technical efficiency was found to be increasing over time. It was also found that the inefficiencies in the industry were mainly caused by ‘pure’ technical inefficiency rather than scale inefficiency. The outputs produced from SFA, DEA and SDEA were compared. The overall mean TE of SFA, DEA and SDEA are 0.79, 0.88 and 0.97 respectively. It was found that DEA produced efficiency values that have weak positive correlation to both the efficiency scores produce from SFA and SDEA. Meanwhile, the results from SFA and SDEA were uncorrelated. We discovered that the choice of technique in efficiency measurement greatly influences the efficiency values estimated and the efficiency rankings of the states.
format	Thesis
qualification_level	Master's degree
author	Sabar, Mariah
author_facet	Sabar, Mariah
author_sort	Sabar, Mariah
title	Parametric And Non-Parametric Techniques In Estimating Technical Efficiency Of Crude Palm Oil Production In Malaysia
title_short	Parametric And Non-Parametric Techniques In Estimating Technical Efficiency Of Crude Palm Oil Production In Malaysia
title_full	Parametric And Non-Parametric Techniques In Estimating Technical Efficiency Of Crude Palm Oil Production In Malaysia
title_fullStr	Parametric And Non-Parametric Techniques In Estimating Technical Efficiency Of Crude Palm Oil Production In Malaysia
title_full_unstemmed	Parametric And Non-Parametric Techniques In Estimating Technical Efficiency Of Crude Palm Oil Production In Malaysia
title_sort	parametric and non-parametric techniques in estimating technical efficiency of crude palm oil production in malaysia
granting_institution	Universiti Sains Malaysia
granting_department	Pusat Pengajian Sains Matematik
publishDate	2019
url	http://eprints.usm.my/48165/1/MARIAH%20BINTI%20SABAR%20cut.pdf
_version_	1747821892266360832

Parametric And Non-Parametric Techniques In Estimating Technical Efficiency Of Crude Palm Oil Production In Malaysia

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