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Effects of machinery‐sharing arrangements on farm efficiency: evidence from Sweden
Authors:Karin Larsén
Institution:Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO), Theodor‐Lieser‐Strasse 2, 06120 Halle (Saale), Germany
Abstract:The effects of partnerships, in the form of machinery‐sharing arrangements, on farm efficiency are analyzed using data for Swedish crop and livestock farms. Efficiency scores are obtained using Data Envelopment Analysis and the findings suggest that efficiency is, on average, higher among partnership farms compared to nonpartnership farms. Moreover, partnership farms that are characterized by the most extensive form of collaboration, that is, that share all machinery with one or several other farms, display the highest average efficiency. In a two‐stage procedure in which efficiency determinants are analyzed in the second stage, the bootstrap procedures suggested by Simar and Wilson (2007) are applied in addition to the conventionally used Tobit regression. Participation in partnership arrangements is found to have a positive and statistically significant impact on farm efficiency.
Keywords:C61  Q12  Machinery‐sharing  Partnerships  Data envelopment analysis
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