Measuring the Technical and Scale Efficiency of Maize Production in Thailand: The Case of Mae Chaem District, Chiang Mai

Abstract

This paper aims to measure the technical efficiency(TE) by identifying sources it for maize production in Mae Chaem District, Chiang Mai, Thailand and to explain estimated TE by farmer characteristics. Data Envelopment Analysis was employed to estimate farmer (DMU) score of technical efficiency both of the constant return to scale (CRS) and the variable return to scale (VRS) were applied to the study based on input oriented, a relative efficiency index in production. Then, Tobit regression model was used to clarify the variation in technical efficiency scores by determining major farmer’s characteristics as an element factors behind. A total 103 Maize farms were selected for the study dividing into 2 groups by 52 farms were non-burn farm and 51 farms were burned farm. The result showed that group1 has more average efficiency than group2 by 7% under the constant return to scale and 1% under the variable return to scale. The scale efficiency result show that majority of both of farmer group were operated with increasing return to scale. Tobit regression result shows that farm’s characteristics such as farm experience, burn, family size have statistically significantly affected by 0.53, -7.2 and 1.36 percent to technical efficiency under constant return to scale, the technical efficiency under variable return to scale was influenced by farm experience and family size by 0.61 and 1.10 percent respectively.

Keywords: Non-Parametric, Data Envelopment Analysis, Tobit Analysis, Technical Efficiency, Farmer Characteristics.