Estimating Economic Efficiency in Paddy Farms: A Case of Northwest Selangor IADP

Economic efficiency can be measured as allocative and technical efficiency. A study to measure the technical, allocative and economic efficiency of paddy farms using the probabilistic frontier production function was carried out. Results showed that the sample paddy farmers under study are economically inefficient. There is still in technical efficiency a 15 percent potential for in creasing the output of farmers, and a 35 percent potential in allocative efficiency to increase output optimally. The government should therefore play a part in directing education, extension, and social change and provide institutional support in order to improve the farmers' efficiency technically and allocatively

Visitors’ Visiting Motivation: Bako National Park, Sarawak

AbstractThis study was conducted to analyse the visitors’ motives of visiting Bako National Park. A total of 564 local and foreign visitors were interviewed. Factor analysis with the varimax rotation method was employed to gain information from visitors on their behaviour reflecting their motives for ecotourism activities in the national park. The results showed that visitors visit a national park for four factors, which are challenge excursion, social trip, nature tour and getaway outing. This result may help the management authority to reposition national park attributes without neglecting the objectives of the national park existence. Several marketing implications also can be drawn from this study

Effect of mergerson efficiency and productivity: Some evidence for banks in Malaysia

This study is undertaken to investigate the extent to which mergers lead to efficiency by which services are provided to the public and the productivity of Malaysia’s banking institutions sector. The data cover the period 1993 to 2004, which includes the pre-merger years and the post-merger years. This study attempts to evaluate technical efficiency, efficiency change, technical change and productivity of commercial banks, finance companies and merchant banks using a non-parametric Data Envelopment Analysis (DEA) and Malmquist Index approach as the framework for the analyses. It is found that: (1) that on average, productivity across banking institutions increased at annual rate of 5.8% over the study period 1993 to 2004; (2) the results also indicated that almost all of the productivity growth comes from technical change (or innovations in banking technology) rather than improvement in efficiency change, which contributes for 6.1% of productivity growth, while the latter accounted for 0.2% decline; (3) the merger process led to productivity improvements whereby, it is observed that the productivity of Malaysia’s banking sector has been improved (in terms of efficiency) after the implementation of merger program for domestic banking institutions in 1999. This might be due to the utilization of their scale economies to improve their efficiencies. However, the productivity of banking institutions has been affected by certain economic conditions in year 2001 and 2004 (such as the September 11 tragedy and the process of capital rationalization that merged entities have undergone).Banking sector, Mergers, DEA and Malmquist index,Malaysia

Productivity and efficiency performance of the Malaysian life insurance industry

This study aflempts to measure the productivity of the life insurance industry by employing the non-parametric Malmquist Index approach. The finding shows that despite the productivity growth in the insurance industry, it is relatively low compared to the real economic growth experienced by Malaysia. Like the manufacturing sector, the future growth of this industry would depend on its ability to compete efficiently. Being able to provide service in an efficient way would be an important source of comparative advantage under the era of globalization. The results also suggest that both technical efficiency and technical progress contribute to the overall productivity growth of the industry

Measuring the effect of Asian financial crisis on the comparative advantage of the food processing industry

This paper investigates the effect of the 1997 Asian financial crisis on the levels of competition for various productions of food products. The study is undertaken using the concept of comparative advantage. In the context of competitiveness of the Malaysian food processing industry the evaluation of comparative advantage has been undertaken with special reference to the prior implementation of the scheduled liberalization of trade preferences under the WTO and AFTA in 2010. In order to penetrate a wider range of foreign markets, Malaysian food processors have to identify food sectors that are internationally competitive and could withstand internal and external shocks. The Malaysian competitiveness level was determined using the Domestic Resource Cost (DRC) and Social Cost Benefit (SCB) indicators. Twenty food sectors were assessed using the Malaysian food production and trade data from 2000 to 2005. The results indicate that in the post crisis period, Malaysia enjoys an above average level of comparative advantage in the production of edible oil and fat from vegetables and animals, fish and, glucose and maltose. As expected, Malaysia has a comparative disadvantage in the production of paddy

Use of dichotomous choice contingent valuation method to value the Manukan Island, Sabah

This study presents the application of dichotomous choice contingent valuation method (CVM) to value outdoors-recreational resources in Manukan Island, Sabah. Both the logit and probit models are used to analyze the primary data obtained through personal interview. The maximum likelihood estimates of this model show that income and price are significant variables in determining one is willingness to pay (WfP). The WTP figure derived from the model shows that it is much higher than present fees charged to the visitors. This study has also estimated the revenue that could be derived is the fees were charged according to the WTP framework

Export and Import Cointegration in Forestry Domain: The Case of Malaysia

This study was undertaken to explore the relationship between the export and import in the category of Forestry domain for Malaysia which includes sub domain (1)industrial roundwood; (2)wood pulp; (3)wood fuel; (4) paper and paper board; (5) sawn wood; (6) recovered paper and (7)wood base panel. Johansen (1991) cointegration method was employed and the period of the study covers monthly data from 1961 to 2007. The results clearly show that the export and import of forestry domain is highly cointegrated. Bi-directional granger causality could be detected based on VECM method. Imports seems to positively and significantly affect exports, both in the long run and short run, vice versa.Johansen cointegration test; forestry trade; VECM

Technical efficiency estimates for Sarawak pepper farming: a comparative analysis

Estimating technical efficiency of production technology is important for policy purposes. Four production frontiers consisting of parametric and nonparametric functions were analysed to estimate technical efficiency ratios on a sample of pepper farms in Sarawak. The methodologies employed produced different estimates, distributions, and rankings of efficiency ratios. The nonparametric estimates were greater than parametric estimates except under stochastic parametric method. Due to the large differences in technical efficiency results, recommendation for policy purpose should not be made without prior detailed analysis of each method