Production Efficiency and Total Factor Productivity Growth in Turkish State Agricultural Enterprises

 Mehmet Candemir and Ertugrul Deliktas

 

Abstract

This paper examines the productivity performance of Turkish State Agricultural Enterprises using Data Envelopment Analysis approach. Regarding this, the paper mainly focuses on production efficiency or technical efficiency and total factor productivity growth of the enterprises over the 1999-2003 period. In the second stage of the study, we use a regression analysis to estimate the affects of potential factors influencing the production efficiency of the enterprises.  The empirical results indicate that during this period, the agricultural enterprises experienced technical regress, on average, while the technical efficiency improved 1.5 percent. On the other hand,, the total factor productivity decreased 1.2 percent due to 2.7 percent technical regress over the study period. Also, the results of regression estimation indicate that irrigation rate, tractor as an indicator of existing technology, and the geographic regions of enterprises are important determinants of production efficiency.

Keywords: State agricultural enterprises in Turkey, total factor productivity growth, data envelopment analysis