Management Theory and Studies for Rural Business and Infrastructure Development, Volume 35, Number 4

Analysis of the relative efficiency of Lithuanian family farms under uncertainty: alpha-quantile frontiers

Tomas Baležentis, Rasa Melnikienė, Mette Asmild, Jens Leth Hougaard, Aistė Galnaitytė

Abstract

Estimation of the farming efficiency constitutes an important issue related to the policy analysis. However, the efficiency of Lithuanian family farms has not been analysed by the means of the order–alpha frontiers yet. The latter technique enables to estimate the level of efficiency along with sensitivity analysis. This study attempted to analyse the Lithuanian family farm efficiency as well as the associated uncertainties. The probabilistic analysis of the efficiency of Lithuanian family farms suggested that the livestock farming was the most efficient farming type. Even though livestock farming appeared to be a relatively efficient farming type, the number of livestock is decreasing Lithuania. Such changes might be fuelled by both economic and social developments in Lithuania. Therefore, the appropriate measures aimed at fostering livestock farming in Lithuania would contribute to increase in agricultural efficiency and productivity.

JEL Codes: C14, C44, D24, Q12.

Keyword(s): efficiency, family farms, order–alpha frontier, activity 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.