Subsidies Reform and the Efficiency of Dairy Farms in Iran: A Comprehensive Evaluation | ||
| Iranian Journal of Economic Studies | ||
| مقاله 5، دوره 10، شماره 2 - شماره پیاپی 20، اسفند 2021، صفحه 391-410 اصل مقاله (669.36 K) | ||
| نوع مقاله: Research Paper | ||
| شناسه دیجیتال (DOI): 10.22099/ijes.2022.40872.1757 | ||
| نویسندگان | ||
| zeinab shokoohi* 1؛ Mohammad Bakhshoudeh1؛ Mahdi Asgari2 | ||
| 1Department of Agricultural Economics, Shiraz University, Shiraz, Iran. | ||
| 2Department of Agricultural Economics, University of Kentucky, Lexington, United States | ||
| چکیده | ||
| Subsidies reform in Iran started in 2010 after the implementation of the Targeted Subsidies Plan. Increasing the efficiency and productivity of production units through price realization was a main objective of this policy. However, the resulting spike in input and output prices challenged the achievement of the policy goals. The main purpose of this article is to compare the efficiency of the dairy farms in Iran before and after the Targeted Subsidies Plan was implemented. We used a sample of longitudinal data over the years 1990, 1993, 2000, 2007, 2013, 2016, and 2019 covering 11 regions in 18 provinces and applied stochastic frontier analysis by imposing the monotonicity condition to evaluate efficiency and productivity of the farms. The estimation results show that the unrestricted production frontier is not monotonic in energy and labor. Therefore, imposing a monotonicity condition reduces estimation bias which is critical for policymaking. Unbiased estimation of productive efficiency resulting from imposing the monotonicity condition ranges from 0.72 to 0.86, depending on the region. Results also show a 17% reduction in the production efficiency of the examined dairy farms after the subsidy reform plan which is against the policy goals. The regional differences in the efficiency of intensive dairy farming indicate the need for the more regionally specific supplementary policy, in terms of support schemes and subsidy reforms. | ||
| کلیدواژهها | ||
| Productivity؛ Monotonicity؛ Frontier Production؛ Targeted Subsidies Plan؛ Iran | ||
| مراجع | ||
|
Ahmadzadeh, M. (2016). Inefficiency and production risk of trout fish in Fars province. MS Thesis, Shiraz University. (In Farsi). Aigner, D., Lovell, C. A. K., & Schmidt, P. (1977). Formulation and estimation of stochastic frontier production function models. Journal of Econometrics, 6(1), 21-37. Alem, H. (2021). The role of technical efficiency achieving sustainable development: A dynamic analysis of Norwegian dairy farms. Journal of Sustainability, 13(4), 1841. Amini, S. H., Yazdani, A. R., Chizari, A. H., & Broujeni, P. A. (2012). Measuring the efficiency of industrial dairy cattle breeding farms using data envelopment analysis: A case study in southern Tehran province, Iran. Journal of Agri Econ Research, 4(13),105-120. (In Farsi). Arreola, J. L. P., Johnson, A. L., Chen, X. C., & Morita, H. (2020). Estimating stochastic production frontiers: A one-stage multivariate semiparametric Bayesian concave regression method. European Journal of Operational Research, 287(2), 699-711. Bakhshoodeh, M. (2013). Proxy means tests for targeting subsidies scheme in Iran. Iranian Journal of Economic Studies, 2(2), 25-46. (In Farsi). Barkhordar, Z. A., Fakouriyan, S., & Sheykhha, S. (2018). The role of energy subsidy reform in energy efficiency enhancement: Lessons learnt and future potential for Iranian industries. Journal of Cleaner Production, 197, 542-550. Barnett, W. A. (2002). Tastes and technology: Curvature is not sufficient for regularity. Journal of Econometrics, 108(1), 199-202. Batiese, G. E. (1992). Frontier production functions and technical efficiency: A survey of empirical applications in agricultural economics. Agricultural Economics, 7(3-4), 185-208. Battese, G. E., & Corra, G. S. (1977). Estimation of a production frontier model: With application to the pastoral zone of Eastern Australia. Australian Journal of Agricultural Economics, 21(3), 169-179. Belotti, F., & Ferrara, G. (2019). Imposing monotonicity in stochastic frontier models: An iterative nonlinear least squares procedure. Centre for Economics and International Studies (CEIS) Working Paper, 462. Belotti, F., & Ilardi, G. (2012). Consistent estimation of the 'true' fixed-effects stochastic frontier model. Centre for Economics and International Studies (CEIS) Working Paper, 231. Bokusheva, R., & Hockmann, H. (2006). Production risk and technical inefficiency in Russian agriculture. European Review of Agricultural Economics, 33(1), 93-118. Bravo-Ureta, B. E., Moreira, V. H., Arzubi, A. A., Schilder, E. D., Álvarez, J., & Molina, C. (2008). Technological change and technical efficiency for dairy farms in three countries of South America. Chilean J. Agric. Res, 68, 360-367. Coelli, T. J., Rao, D. S. P., O'Donnell, C. J., & Battese, G. E. (2005). An introduction to efficiency and productivity analysis. Springer Science & Business Media. Dakpo, K. H., Latruffe, L., Desjeux, Y., & Jeanneaux, P. (2021). Modeling heterogeneous technologies in the presence of sample selection: The case of dairy farms and the adoption of agri‐environmental schemes in France. Agricultural Economics. Derks, M., Hogeveen, H., Kooistra, S. R., van Werven, T., & Tauer, L. W. (2014). Efficiency of dairy farms participating and not participating in veterinary herd health management programs. Preventive Veterinary Medicine, 117(3-4), 478-486. Diewert, W. E., & Wales, T. J. (1989). Flexible functional forms and global curvature conditions. National Bureau of Economic Research (NBER), 55(1), 43-68. Dourandish A., Nikoukar A., Hosseinzadeh M., & Lavshabi, A. (2013). Estimating multi-output technical efficiency for the dairy farms of the northern Khorasan province (applying stochastic production and stochastic distance frontiers). Journal of Agricultural Economics and Development, 27(2), 114-122. (In Farsi). Edwards, D., & Terrell, D. (2004). Does theory matter: Assessing the impact of monotonicity and concavity constraints on forecasting accuracy. Midwest Econometrics Group. Emrouznejad, A., & Podinovski, V. (2004). Data envelopment analysis and performance management: Proceedings of the 4th international conference on DEA, September 2004. Birmingham, UK, 417. Eshraghi F., & Kazemi, F. (2014). Evaluating economic and technical efficiency of dairy farms in Gorgan county. Journal of Ruminant Research, 2(1), 195-211. (In Farsi). Farrell, M. J. (1957). The measurement of productive efficiency. Journal of the Royal Statistical Society: Series A (General), 120(3), 253-281. Fatemi-Amin, S. R., & Mortezaie, A. (2013). Food supply chain strategic plan. Tehran, JDSB Press. (In Farsi). Furesi, R., Madau, F. A., & Pulina, P. (2013). Technical efficiency in the sheep dairy industry: An application on the Sardinian (Italy) sector. Agricultural and Food Economics, 1(1), 1-11. Hadley, D. (2006). Patterns in technical efficiency and technical change at the farm-level in England and Wales, 1982–2002. Journal of Agricultural Economics, 57, 81-100. Henningsen, A., & Henning, C. H. (2009). Imposing regional monotonicity on translog stochastic production frontiers with a simple three-step procedure. Journal of Productivity Analysis, 32(3), 217-229. Hosseini, S. S., & Iravani, S. (2012). Evaluating support policies of milk producers in Iran: 1368-87. Agricultural Economics, 5(3), 1-24. Howard, W. H., & Shumway, C. R. (1988). Dynamic adjustment in the US dairy industry. American Journal of Agricultural Economics, 70(4), 837-847. Jiang, N., & Sharp, B. (2014). Cost efficiency of dairy farming in New Zealand: A stochastic frontier analysis. Agricultural and Resource Economics Review, 43(3), 406-418. Kumbhakar, S. C., & Lovell, C. K. (2003). Stochastic frontier analysis. Cambridge University Press. Latruffe, L., Bravo‐Ureta, B. E., Carpentier, A., Desjeux, Y., & Moreira, V. H., (2017). Subsidies and technical efficiency in agriculture: Evidence from European dairy farms. American Journal of Agricultural Economics, 99(3), 783-799. Lin, B., & Jiang, Z. (2011). Estimates of energy subsidies in China and impact of energy subsidy reform. Energy Economics, 33(2), 273-283. Mas-Colell, A., Whinston, M. D., & Green, J. R. (1995). Microeconomic theory (Vol. 1). New York: Oxford University Press. Mehrjou, E., Moghadasi, R., Mirsalehpour, M., & Mehrjoo, N. (2011). Study of technical performance of diary cattles cooperative companies in Kohgiluyeh and Boyer-Ahmad province. Co-Operation and Agriculture, 22(6), 21-41. (In Farsi). Minviel, J. J., & Latruffe, L. (2017). Effect of public subsidies on farm technical efficiency: A meta-analysis of empirical results. Applied Economics, 49(2), 213-226. Molaei, M., & Sani, F. (2017). Evaluating the impact of environmental pollutants on technical efficiencies of dairy farms using stochastic frontier analysis. Iranian Journal of Agricultural Economics and Development Research, 48(1), 35-42. (In Farsi). Mugera, A., Langemeier, M., & Featherstone, A. (2010). Do theoretical restrictions matter for the translog stochastic production function? evidence from the kansas farm sector (No. 61582). Agricultural and Applied Economics Association. Mukherjee, D., Bravo‐Ureta, B. E., & De Vries, A. (2013). Dairy productivity and climatic conditions: Econometric evidence from South‐eastern United States. Australian Journal of Agricultural and Resource Economics, 57(1), 123-140. Mulwa, R., Emrouznejad, A., & Muhammad, L. (2009). Economic efficiency of smallholder maize producers in Western Kenya: A DEA meta-frontier analysis. International Journal of Operational Research, 4(3), 250-267. O’Donnell, C. J., & Coelli, T. J. (2005). A Bayesian approach to imposing curvature on distance functions. Journal of Econometrics, 126(2), 493-523. Paltasingh, K. R., & Goyari, P. (2018). Impact of farmer education on farm productivity under varying technologies: Case of paddy growers in India. Agricultural and Food Economics, 6(1), 1-19. Rafiei, H., Heidari-Khormizi, S. R., & Ganjkhanlou, M. (2011). Measuring total factor productivity and calculating efficiency and return to scale in industrial dairy farms: Case study, Gilan province. Journal of Agricultural Economics Research, 3(4), 117-132. (In Farsi). Rahiminia, H., Akbari Moghada, B., & Monjazeb, M. R. (2015). The impact of fuel subsidy targeting in Iran using a CGE model. Iranian Journal of Economic Studies, 4(1), 53-79. (In Farsi). Sckokai, P., & Moro, D. (2009). Modelling the impact of the CAP single farm payment on farm investment and output. European Review of Agricultural Economics, 36(3), 395-423. Shahaei, B., DanaeiFard, H., & Azar, A. (2016). Explaining statis and change in Iran, subsidy policy: Advocacy coalition framework. Quarterly Journal of Public Organzations Management, 5(1), 67-88. (In Farsi). Shahraki, J., Pahlavani, M., & Ohadi, N. (2016). Measurement of technical efficiency and production risk in Zabol dairy farms, Iran. International Journal of Agricultural Management and Development (IJAMAD), 6(1047-2017-1699), 439-448. Skevas, I., Emvalomatis, G., & Brümmer, B. (2018). Heterogeneity of long‐run technical efficiency of German dairy farms: A Bayesian approach. Journal of Agricultural Economics, 69(1), 58-75. Sobhanian, S. M. H., Aghajani-Memar, E., & Aboohamzeh, D. (2018). Analysis of macro factors affecting the process of social capital accumulation in Iran. Majlis & Rahbord, 25(94), 5-38. (In Farsi). Sobhanian, S. M. H., Haghani, M. E., & Abouhamzeh, D. (2018). Analysis of macro factors affecting the process of social capital accumulation in Iran. Majlis and Rahbord, 25(94), 5-38. Tashkini, A. (2014). Effects of targeting subsidies on agricultural sector in Iran. Economic Modelling, 8(25), 35-52. (In Farsi). Torkamani, J., & Shoushtarian, A. (2007). Economic analysis of production and determining technical efficiency of dairy farms: Case study in Fars province. Development and Productivity, 2, 29-48. (In Farsi). Wang, H. J. (2002). Heteroscedasticity and non-monotonic efficiency effects of a stochastic frontier model. Journal of Productivity Analysis, 18(3), 241-253. | ||
|
آمار تعداد مشاهده مقاله: 375 تعداد دریافت فایل اصل مقاله: 314 |
||