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Jurnal Ekonomi Malaysia

57 (2) 2023 123 – 133

Influence of Soil Properties on Technical Efficiency of Paddy Production: Evidence from Malaysia

Strategic Planning & Innovation Management Centre
Malaysian Agricultural Research and Development Institute
43400 Serdang, Selangor, MALAYSIA.

khairulhafifi@mardi.gov.my

School of Economics, Finance and Banking
Universiti Utara Malaysia
06010 UUM Sintok, Kedah, MALAYSIA.

roslina_k@uum.edu.my

School of Economics, Finance and Banking
Universiti Utara Malaysia
06010 UUM Sintok, Kedah, MALAYSIA.

dewi@uum.edu.my

Abstract

This paper aims to investigate the effects of soil fertility and cation ratios on the efficiency of paddy production. Data envelopment analysis (DEA) was utilized to estimate efficiency, and Tobit regression was used to identify significant factors of inefficiency. The data was collected from 80 respondents in selected Malaysia’s major paddy granaries over January to March 2022. The results indicated that the respondents’ mean technical efficiency with respect to the constant returns to scale (CRS) and variable returns to scale (VRS) specifications were 60 per cent and 70 per cent, respectively. The results showed that farmers in the study areas may increase yield by 40% without additional inputs. Meanwhile, the inefficiency effects model indicated that experience, soil pH, and (calcium+magnesium)/ potassium ratios significantly affected inefficiency. Thus, it is suggested that any development programmes for the paddy sector should also consider the soil fertility indicators and cation rations besides the farmer’s socio-economic factors.

 

 

 

Keywords

Data Envelopment Analysis; paddy production; socio-economic; soil properties; Tobit regression

JEL Codes

O130, Q120, Q180
http://dx.doi.org/10.17576/JEM-2023-5702-09
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Maidin, M. K. H., Kamaruddin, R., & Applanaidu, S. D. (2023). Influence of Soil Properties on Technical Efficiency of Paddy Production: Evidence from Malaysia. Jurnal Ekonomi Malaysia, 57(2), 123–133. http://dx.doi.org/10.17576/JEM-2023-5702-09

@article{maidin2023influence,
  title={Influence of Soil Properties on Technical Efficiency of Paddy Production: Evidence from Malaysia},
  author={Maidin, Mohd Khairul Hafifi and Kamaruddin, Roslina and Applanaidu, Shri Dewi},
  journal={Jurnal Ekonomi Malaysia},
  volume={57},
  number={2},
  pages={123—133},
 

year={2023},
}

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