| Abstract: | Abstract: This paper investigates farm level technical efficiency of production and its determinants in a sample of 178 olive producing farms in Tunisia using a stochastic frontier production function approach applied to cross‐section data. Results indicate that technical efficiency of production in the sample of olive producing farms investigated ranges from a minimum of 58.5 per cent to a maximum of 95.5 per cent with an average technical efficiency estimate of 82 per cent. This suggests that olive producers may increase their production by as much as 18 per cent through more efficient use of production inputs. Further, the estimated coefficients in the technical inefficiency model indicate the positive effect on technical efficiency of the share of productive trees, the share of skilled labour and agricultural training. However, a negative relationship between technical efficiency and fruit trees is found. |
