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Evaluation of cost efficiency in tomato greenhouses: the case of seven agrobussines in México, 2016

The Central European Review of Economics and Management

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Title Evaluation of cost efficiency in tomato greenhouses: the case of seven agrobussines in México, 2016
 
Creator Arvizu ARMENTA, Marisol
 
Subject Economy, efficiency evaluation
Stochastic Frontier Model, Efficiency in Costs, tomato´s Greenhouses
D14, Q13
 
Description Aim: The main objective of this research was to evaluate the efficiency of economic costs in seven units of greenhouse tomato production, during the production cycles of 2016, through the application of the stochastic frontier, depending on the type of packaging they handle and the cost structure that governs them. Design / Research methods: The stochastic frontier model includes the analysis of the non-systematic random component, which assumes an extremely critical role in the analysis during the interpretations. With the calculation of the stochastic cost frontier we construct the cost inefficiency index represented by C_it, delimited below 0. The index shows the percentage in which the cost is exceeded and, therefore, the degree of inefficiency. Conclusions / findings: The elaboration of the stochastic frontier finds its justification in the argument that the less efficient competitor is the one that receives the greater effects of the competition. In this sense, the location of the companies analyzed with respect to their own line of efficiency is essential for the design of the strategies of each company. The production units analyzed showed that, on some occasions, externalities are the cause of inefficiency, but contrary to what is established in theory, there are some units that show that the inefficiency with which they count is diminished by The influence of uncontrolled variables. Originality / value of the article: The contribution of this research lies in the use of efficiency models in the primary sector, specifically in tomato´s greenhouses.
 
Publisher WSB University in Wroclaw Publishing Department
 
Contributor
 
Date 2018-09-27
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Scientific Article
Artykuł naukowy
 
Format application/pdf
 
Identifier http://ojs.wsb.wroclaw.pl/index.php/WSBRJ/article/view/576
10.29015/cerem.576
 
Source The Central European Review of Economics and Management; Vol 2, No 3 (2018); 99-122
The Central European Review of Economics and Management; Vol 2, No 3 (2018); 99-122
2544-0365
2543-9472
 
Language eng
 
Relation http://ojs.wsb.wroclaw.pl/index.php/WSBRJ/article/view/576/394
 
Rights Copyright (c) 2018 WSB University in Wroclaw