Technical efficiency analysis of shrimp farming in Peninsular Malaysia: a stochastic frontier production function approach

Shrimp farming has become increasingly important in the aquaculture industry of Peninsular Malaysia. The culture areas for shrimp continue to expand with a view to achieve higher output and generating more export earnings. This paper uses farm level data gathered from Perak and Johor States of Penin...

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Main Authors: Md. Nurul Islam, Gazi, Tai, Shzee Yew, Mohd Noh, Kusairi
Format: Article
Published: Academic Journals 2014
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author Md. Nurul Islam, Gazi
Tai, Shzee Yew
Mohd Noh, Kusairi
author_facet Md. Nurul Islam, Gazi
Tai, Shzee Yew
Mohd Noh, Kusairi
author_sort Md. Nurul Islam, Gazi
collection UPM
description Shrimp farming has become increasingly important in the aquaculture industry of Peninsular Malaysia. The culture areas for shrimp continue to expand with a view to achieve higher output and generating more export earnings. This paper uses farm level data gathered from Perak and Johor States of Peninsular Malaysia to investigate the technical efficiency of brackish water shrimp farms. Stochastic frontier production analysis is applied to examine the determinants of frontier production function and the technical efficiency of pond shrimp farming system. On average, 65% of the sampled shrimp farms are technically efficient. The results suggest high degrees of technical inefficiency exist among the shrimp farmers. This implies that great potential exists to increase shrimp production through improved efficiency in farm management in Peninsular Malaysia. Initiatives to undertake extension programmes at the farm level are needed to help shrimp farmers in utilizing their resources more efficiently in order to substantially enhance their shrimp production.
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institution Universiti Putra Malaysia
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spelling upm.eprints-356042016-01-18T02:26:02Z http://psasir.upm.edu.my/id/eprint/35604/ Technical efficiency analysis of shrimp farming in Peninsular Malaysia: a stochastic frontier production function approach Md. Nurul Islam, Gazi Tai, Shzee Yew Mohd Noh, Kusairi Shrimp farming has become increasingly important in the aquaculture industry of Peninsular Malaysia. The culture areas for shrimp continue to expand with a view to achieve higher output and generating more export earnings. This paper uses farm level data gathered from Perak and Johor States of Peninsular Malaysia to investigate the technical efficiency of brackish water shrimp farms. Stochastic frontier production analysis is applied to examine the determinants of frontier production function and the technical efficiency of pond shrimp farming system. On average, 65% of the sampled shrimp farms are technically efficient. The results suggest high degrees of technical inefficiency exist among the shrimp farmers. This implies that great potential exists to increase shrimp production through improved efficiency in farm management in Peninsular Malaysia. Initiatives to undertake extension programmes at the farm level are needed to help shrimp farmers in utilizing their resources more efficiently in order to substantially enhance their shrimp production. Academic Journals 2014 Article PeerReviewed Md. Nurul Islam, Gazi and Tai, Shzee Yew and Mohd Noh, Kusairi (2014) Technical efficiency analysis of shrimp farming in Peninsular Malaysia: a stochastic frontier production function approach. Trends in Applied Sciences Research, 9 (2). pp. 103-112. ISSN 1819-3579; ESSN: 2151-7908 http://scialert.net/abstract/?doi=tasr.2014.103.112 10.3923/tasr.2014.103.112
spellingShingle Md. Nurul Islam, Gazi
Tai, Shzee Yew
Mohd Noh, Kusairi
Technical efficiency analysis of shrimp farming in Peninsular Malaysia: a stochastic frontier production function approach
title Technical efficiency analysis of shrimp farming in Peninsular Malaysia: a stochastic frontier production function approach
title_full Technical efficiency analysis of shrimp farming in Peninsular Malaysia: a stochastic frontier production function approach
title_fullStr Technical efficiency analysis of shrimp farming in Peninsular Malaysia: a stochastic frontier production function approach
title_full_unstemmed Technical efficiency analysis of shrimp farming in Peninsular Malaysia: a stochastic frontier production function approach
title_short Technical efficiency analysis of shrimp farming in Peninsular Malaysia: a stochastic frontier production function approach
title_sort technical efficiency analysis of shrimp farming in peninsular malaysia a stochastic frontier production function approach
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AT mohdnohkusairi technicalefficiencyanalysisofshrimpfarminginpeninsularmalaysiaastochasticfrontierproductionfunctionapproach