Comparison of Technical Efficiency of Rice Mill Systems between Thailand and Taiwan

Authors

  • J. Wongkeawchan Agricultural System Program Student, Faculty of Agriculture, Chiang Mai University
  • A. Wiboonpongse Associate Professor, Department of Agriculture Economic, Chiang Mai University
  • S. Sriboonchitta Lecturer, School of Economics, Chiang Mai University
  • W.T. Huang Professor, Faculty of Business Administration, Taichung Healthcare and Management University

Abstract

Abstract

            This study attempts to measure the technical efficiency and to find the sources of inefficiency of rice mill business in Thailand and Taiwan. The survey was based on cross-sectional data in 2000. Purposive sampling technique was applied to select 36 commercial rice mills in Thailand and 35 in Taiwan. Data Envelopment analysis (DEA) was used to estimate technical efficiency level. The results showed that total technical efficiency and pure technical efficiency of rice mill in Thailand on the average are less than Taiwan. However, the appropriate scale efficiencies of rice mill in both countries are almost identical. For the sources of inefficiency, it was found that the only variable that affected the technical efficiency was capacity in Thailand. The other variables were not significant for both Thailand and Taiwan.

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