The Impacts of Governance on Agricultural Efficiency

Abolhassani, Leili; Eghbali, Fatemeh; Shahnoushi, Naser

The Impacts of Governance on Agricultural Efficiency

2017

Abolhassani, Leili | Eghbali, Fatemeh | Shahnoushi, Naser

The main goal of the study is to explain the interaction between governance and agriculturalefficiency. The study used a Panel Data Regression Analysis to investigate the relationship betweensix governance indicators and agricultural efficiency. Agricultural efficiency was measured as theratio of agricultural outputs to agricultural inputs by Data Envelopment Analysis (DEA). In thisstudy, we combined DEA and a regression analysis. In the first stage, DEAmodel was used (outputoriented,constant return to scale model) to analyze the agricultural efficiency of countries. In thesecond stage, Panel Data Regression Analysis was used to find the effects of WorldwideGovernance Indicators (WGI) and country type on country's efficiency. The results showed thatgovernance indicators are not efficient on the agricultural efficiency.

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