Technical Efficiency Analysis of Micro-enterprises: Theoretical and Methodological Approach of the Stochastic Frontier Production Functions Applied to Nigerian Data

Abstract

Most households in rural Madagascar are engaged in agriculture and derive a large share of their income from the production of food or cash crops and from animal husbandry. However, agricultural yields can be extremely volatile due to weather conditions, pests, insects, rodents and other calamities. As a result, households record large fluctuations in their incomes that must be dealt with. Since the usual consumption-smoothing market mechanisms are quite limited in the Malagasy context, households need to rely on nonmarket mechanisms or to adopt multi-faceted strategies to cope with risk. In this paper, we examine the possibility that parents obtain informal income insurance by letting their children work. We test this hypothesis by examining the relationship between household income shocks and human capital investment in children. In particular, we investigate whether children's propensity to join school and to drop out of school responds to transient shocks. We also investigate issues such as gender and intrahousehold resource allocation.

Efficiency Assessment of Transport Manufacturing Firms using a Stochastic Frontier Analysis Approach

“…Upon observation, the factor of training expenses for employees reduced technical inefficiencies in 2005 and 2007, thus, leading to positive increases in productivity during those years. These findings were in line with the findings of the studies conducted by Ajibefun (2008), and Hamdan et al (2019). The ratio of workers who were educated at the secondary level also reduced the technical inefficiencies in 2009, while the ratio of workers who were educated at the highest level reduced the technical inefficiencies in 2006.…”

Technical efficiency of sawnwood production in Ondo and Osun states, Nigeria

“…The mean technical efficiency of the medium-scale sawmills is 91.4% (Table 3). This is higher than the small-scale sawmills but both estimates are higher than the 66% technical efficiency obtained by Ajibefun (2008). This is because the latter study considered all scales of sawmills and included sawmills from all regions of the country.…”

“…Egboh (1984) examined the bandsaw technology in Nigerian sawmills and concluded that the technology promised increase capacity than its level of use. An estimate of 66% technical efficiency level for sawmills in Nigeria corroborates this (Ajibefun, 2008). Belbase and Grabowski (1985) studied similar technologies and felt that efforts designed to improve process efficiency is more meaningful and cost effective than energy directed towards value addition on the sawnwood product.…”

Analisis Penyampulan Data (DEA) Dua Peringkat dalam Mengenal Pasti Faktor Penentu Kecekapan Teknik Firma Pembuatan Pengangkutan

“…Ini berkemungkinan disebabkan pekerja yang mempunyai pendidikan di peringkat menengah masih tidak mempunyai kepakaran dan kemahiran yang tinggi yang dapat menyumbang kecekapan kepada firma. Selain itu, tahun persekolahan merupakan salah satu peranan penting dalam mengenal pasti prestasi firma termasuklah output, keuntungan dan produktiviti (Ajibefun 2008;Idiong 2007;Murthy et al 2009).…”