Title: Technical efficiency and decision to exit: evidence from the dairy farms in Sukabumi district, West Java, Indonesia
Authors: Maman Setiawan
Addresses: Department of Economics, Faculty of Economics and Business, University of Padjadjaran, Jl. Dipati Ukur No. 35, Bandung 40132, Jawa Barat, Indonesia
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.
Keywords: dairy farms; technical efficiency; bootstrapped data envelopment analysis; decision to exit.
World Review of Entrepreneurship, Management and Sustainable Development, 2019 Vol.15 No.4, pp.428 - 440
Received: 04 May 2017
Accepted: 16 Jul 2017
Published online: 20 Sep 2019 *