Modelling technical efficiency of horticulture farming in Kosovo: An application of data envelopment analysis

Abstract

With a view to integration into the European Union, the efficiency and competitiveness of the Kosovo’ different sectors (including agriculture) must be improved. This paper assesses the technical efficiency (TE) of horticultural farms through Data Envelopment Analysis (DEA) applying output orientation. It was founded that the TE of these farms is positively affected by their size, with large-size farms presenting overall higher technical efficiency. The research findings indicate that the degree of agricultural education does not have a significant impact on TE, whereas public assistance through subsidies and grants has a substantial and negative impact on TE, as confirmed by statistical analysis.