Technical Efficiency in Chilean Agribusiness Industry: A Metafrontier Approach. Issue 3 (25th January 2017)

• Record Type: Journal Article
• Authors: Lakner, Sebastian; Brenes‐Muñoz, Thelma; Brümmer, Bernhard
• Is Part Of: Agribusiness. Volume 33:Issue 3(2017)
• Page Start: 302
• Page End: 323
• Publication Date: 2017-01-25
• Subjects: Agriculture -- Economic aspects -- Periodicals; Agriculture -- Finance -- Periodicals; Agricultural industries -- Periodicals; Agriculture -- Economic aspects -- United States -- Periodicals; Agriculture -- United States -- Finance -- Periodicals; Agricultural industries -- United States -- Periodicals; 338.1
• DOI: 10.1002/agr.21493
• Languages: English
• ISSNs: 0742-4477

Abstract

ABSTRACT: This study models the technical efficiency in the Chilean agribusiness industry between 2001 and 2007 by taking into consideration the structural differences between the different subsectors meat, fruit & vegetables, dairy, milling, and bakery. We analyze firm data from the Annual National Industrial Survey (ENIA) totaling 2, 940 observations using a stochastic frontier model combined with a metafrontier model. We observe dynamic developments in the subsectors meat, fruit & vegetables, and dairy, with a pronounced export‐orientation. We show that especially meat and fruit & vegetables firms have experienced positive technological change, whereas dairy firms are exhibiting a slight decrease in efficiency and technical change. The milling and bakery subsectors, which mainly produce for the domestic market, show a rather constant status in efficiency and technical change. The results confirm that an in‐depth analysis of subsectors is necessary to evaluate the competitiveness of the agribusiness industry in Chile. [EconLit citations: D24; Q13].