Technical efficiency in the Chilean agribusiness sector

Edinson Rivera Aedo, Sebastian Lakner and Bernhard Brümmer

No 10, IAMO Forum 2011: Will the "BRICs Decade" Continue? – Prospects for Trade and Growth from Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO)

Abstract: The reform-process towards a higher world-market orientation has a long tradition in Chile, with all its strengths and weaknesses. The food processing industry is highly competitive on the worldmarket. The following paper investigates the technical efficiency of the Chilean food processing industry between 2001 and 2007. We used a data-set from the 5,941 of firms in food processing industry. The observations are taken of the 'Annual National Industrial Survey'. The method of stochastic frontier analysis is applied; the heteroscedasticity-model is used in order to analyze the determinants of technical efficiency. We included variables capturing different effects before and after the introduction of a liberalization policy in 2004. Raw materials and labor have to largest impact on the output. We could show that technical efficiency is different in the periods before and after 2004. The region with the highest level of efficiency is the metropolitan region around Santiago de Chile.

Keywords: Technical Efficiency; Food Processing Industry; Chile (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-agr, nep-eff and nep-lam
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:iamo11:10

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