Measuring productivity/efficiency in rubber estates: a frontier cost function approach


Citation

Chew T. A., . and Mohd. Yusof Shahabuddin, . Measuring productivity/efficiency in rubber estates: a frontier cost function approach. pp. 303-314. ISSN 0127-7065

Abstract

The focus of the paper is in the determination of productivity efficiency in rubber estates and its implications. The concept of frontier production function is utilised to measure the efficiency of an estates operation. The stochastic cost frontier model is used to measure the deviation of an estates performance from the frontier. Data from the annual costing and management survey of estates were tested on the model. Empirical result shows that there is no evidence of increasing returns to scale for rubber production in estates although economies of size exert influences on certain aspects of its operation. The result also indicates that the type of management the level of fixed cost and yield per hectare contribute towards the efficient operation of an estate.


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Abstract

The focus of the paper is in the determination of productivity efficiency in rubber estates and its implications. The concept of frontier production function is utilised to measure the efficiency of an estates operation. The stochastic cost frontier model is used to measure the deviation of an estates performance from the frontier. Data from the annual costing and management survey of estates were tested on the model. Empirical result shows that there is no evidence of increasing returns to scale for rubber production in estates although economies of size exert influences on certain aspects of its operation. The result also indicates that the type of management the level of fixed cost and yield per hectare contribute towards the efficient operation of an estate.

Additional Metadata

[error in script]
Item Type: Article
AGROVOC Term: Rubber industry
AGROVOC Term: Stochastic models
AGROVOC Term: Management
AGROVOC Term: Operational processes
AGROVOC Term: Job performance
AGROVOC Term: Costing
AGROVOC Term: Efficiency
AGROVOC Term: Productivity
AGROVOC Term: Production functions
AGROVOC Term: Plantations
Geographical Term: Malaysia
Depositing User: Ms. Suzila Mohamad Kasim
Last Modified: 28 Apr 2025 04:42
URI: http://webagris.upm.edu.my/id/eprint/23467

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