Management Theory and Studies for Rural Business and Infrastructure Development, Volume 31

Technical Efficiency and Expansion of Lithuanian Family Farms (2004–2009): Graph Data Envelopment Analysis and Rank-Sum Test

Tomas Baležentis
Lithuanian Institute of Agrarian Economics

Abstract

The aim of this paper is to estimate the impact of the technical efficiency on farm expansion. The research relies on the sample of the Lithuanian family farms operated throughout 2004–2009. The graph DEA model was employed to estimate the efficiency scores, whereas the rank-sum test was employed to test the relationships between efficiency and expansion variables. Farm expansion was analyzed by considering multiple criteria. The rank-sum test indicated that the farms expanded in terms of ESU and UAA were specific with lower efficiency during the preceding periods. Meanwhile, labour input and assets were not related to different populations of efficiency scores. Therefore, one can expect for decrease in efficiency given no managerial decisions are undertaken.

Keyword(s): efficiency; family farms; expansion; Lithuania; data envelopment analysis


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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editor: Dr Audrius Gargasas.