Assessing the technical efficiency of horticultural production in Navarra, Spain

The objective of this paper is to estimate technical efficiency in the horticultural production sector in Navarra (Spain). Tomato and asparagus production are analysed separately. Both a non-parametric and a parametric approach to a frontier production function are used and the differences in the results are discussed. In a second stage we examine the degree to which the calculated efficiency correlates with a set of explanatory variables representing different features of farms such as size, factorial returns and economic performance. The results indicated that both tomato and asparagus production are relatively inefficient, with potential in both cases for reducing input or increasing output. These results hold regardless of whether the frontier was parametric or non-parametric. The estimated measures of technical efficiency were positively related with the partial productivity indices and negatively related with the cultivation costs per hectare. No conclusive results were obtained for the relation between size and efficiency. (C) 2003 Elsevier Ltd. All rights reserved.