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Productivity changes of Credit Department of Farmers¡¦ Associations of the NAN-TOU County in Taiwan:1995-2004

By Piotr Stanek

Abstract

The objective of this article was to measure the productivity of CDFAs of the NAN-TOU County in Taiwan over the period of 1995-2004. This study calculated the Malmquist productivity index by using the nonparametric frontier approach, and decomposed the index into two components: technical change and efficiency change. Empirical results showed that the productivity change of CDFAs in NAN-TOU County ranged from DMU 2¡¦s -6.4% to DMU 8¡¦s -3.8% over the sampled period. The decomposition of Malmquist index into efficiency change and technical change showed that, on average, the productivity change was due to scale change rather than pure efficiency change.

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