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Seminar: SSD

Friday, September 02, 2016, 01:15pm - 02:15pm


Assessment of Neighborhood and Spillover Effects on Technical Efficiency of Irrigated Rice Farmers

Donald Villanueva
Associate Scientist
Social Sciences Division

Neighborhood and spillover effects on technical efficiency were investigated among 270 randomly drawn farming households from 18 irrigated villages of Guimba, Nueva Ecija, Philippines. “Two-step” procedure was used where in the first stage, stochastic frontier production function was used to estimate farmer’s technical efficiency then in the second stage, appropriate spatial econometric models on the technical efficiency were estimated. Hot spot analysis was also conducted and results show that there is significant clustering of high and low values of technical efficiency in the study site, which can be attributed to the proximity of the residence or farm location of the farmer to the sources of inputs, credit, and information on rice production. Spatial econometric models adopted in this study found that spatial dependency on technical efficiency was detected in the error term of the spatial model across seasons and locations, which can be associated to unobserved factors that similarly influence farmers’ technical efficiencies at the same time. Farm size, income, and regular contact and consultation with agricultural technicians are found to be significantly affecting technical efficiency. Results on spatial regression also show that owner-cultivator and loamy soil tend to increase technical efficiency. The results of this study can be used by the local government of Guimba in the formulation of agricultural policies and implementation of essential interventions that would improve the technical efficiency of rice farmers.


SSD Conference Room, Drilon Hall