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Evaluating contextual factors affecting the technical efficiency offreshwater pond culture systems in Peninsular Malaysia: A two-stageDEA approach
The demand for animal protein, especially fish, is growing fast, perhaps due to the rapid expansion ofpopulations, increases in income and changes in eating habits and life styles. Capture fisheries, whichsupply over 70% of the fish for human consumption in Malaysia, are over-exploited or depleted. Theiryields have become stagnant over the last few decades and in some cases have even declined. Neverthe-less, aquaculture has the potential to meet these challenges if practised well. This study therefore aimsto estimate the technical efficiency of pond culture systems using data envelopment analysis (DEA). Inaddition, it investigates the determinants of technical efficiency by employing an ordinary least squares(OLS) regression model. The estimated technical efficiency of pond culture was found to be 0.86, whichmeans that the fish farmers in our sample could reach full technical efficiency through reducing theirinput usage by 14% with the current level of technology to produce the same output levels. The resultsof the OLS regression indicate that farmers’ age, experience, extension training and water managementhave positive and statistically significant impacts on technical efficiency. Information on water manage-ment practices could be passed on by extension agents to inefficient farms to assist them in catching upwith the farms demonstrating best practice.
Keywords:Technical efficiencySlacks variablesData envelopment analysisInefficiencyAquaculturea
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