DEA performance measurements in cotton production of Harran plain, Turkey: A single and double bootstrap truncated regression approaches

Abstract

A single and a double bootstrap of data envelopment analysis examines Harran Plain cotton farming in Turkey. The single bootstrap technique was employed to derive the bias-corrected efficiency values under both constant returns to scale (CRS) and versus variable returns to scale (VRS) technologies while discriminating between the two technologies using a smoothed bootstrap test statistic. Results indicated that the farms operated under VRS technology. Given that VRS technology prevailed across Harran Plain cotton farmers sampled, we then determined factors affecting the bias-corrected technical efficiencies using the double bootstrap technique. Another important finding in the single bootstrap analysis is that cotton farmers in the region have a U-shaped technical efficiency based on the input and output scale. Thus, small-scale farmers tend to use their resources more efficiently in cotton farming than that of both medium-and large-scale farmers. Interestingly, the medium-scale farmers with resource inefficiency are at the forefront of the other two types of farmers (i.e., small-scale and large-scale) on the Harran Plain in Turkey. The results also showed that most of the farm and farmer specific as well as economic factors play a significant role in explaining the technical efficiency values.