Technical efficiency and decision to exit: evidence from the dairy farms in Sukabumi district, West Java, Indonesia
by Maman Setiawan
World Review of Entrepreneurship, Management and Sustainable Development (WREMSD), Vol. 15, No. 4, 2019

Abstract: This research investigates technical efficiency and its effect on the decision to exit of the dairy farms in Sukabumi district, West Java, Indonesia. Farm-level data obtained from survey are used to estimate the technical efficiency using a bootstrapped data envelopment analysis. The results show that dairy farms in Sukabumi are technically inefficient. The technical efficiency also has a negative effect on the decision to exit. This implies that the dairy farms with higher technical efficiency scores tend to have lower probabilities to exit from the business.

Online publication date: Mon, 23-Sep-2019

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