Estimation of Technical Efficiency of Czech Farms Operating in Less Favoured Areas
Tamara Rudinskaya, Tomas Hlavsa, Martin Hruska
This paper deals with the technical efficiency analysis of farms in the Czech Republic. The empirical analysis provides an evaluation of technical efficiency with regard to the farm size, farm specialisation and location. For the analysis accounting data of Czech farms from the Albertina database for the years 2011-2015 was used. The data were classified by the farm utilized agricultural area and location expressed as a less favoured area type from the LPIS database. Research is conducted using the translogarithmic production function and Stochastic Frontier Analysis. The results indicate positive impact of farm size, expressed by utilized agricultural area, on technical efficiency. The analysis of the impact of farm specialisation on technical efficiency verified that farms specialised on animal production are more efficient. The lowest technical efficiency is shown by farms situated in mountain LFA, the highest technical efficiency for farms located in non-LFA regions.
Stochastic Frontier Analysis, technical efficiency, agriculture, LFA, specialisation