Stochastic Frontier Model and Factors Influencing Seed Cotton Production Cost

London Journal of Research in Science: Natural and Formal
Volume | Issue | Compilation
Authored by Dr. Eddy Hope Kabasele Bambe , NA
Classification: For Code : 010406
Keywords: Economic efficiency, stochastic cost frontier, cost determinants, and cotton-grain farms.
Language: English

Study we submit in your journal has a great contribution in throwing light on the empirical literature through examining cost efficiency measurements of Chinese cotton producers, especially because of our model following the current contribution in the field of the efficiency measurement taking in charge the exogenous variables. But with an exception, we worked here within cross-sectional data instead of panel dataset. Consequently, we did not consider the more recent contribution in productivity and efficiency field about transient and persistent inefficiency, which is for our future work. Concerning the previously published works on the cost efficiency of the seed cotton producers from China are scarce, however. And many studies now started to underestimate producers’ efficiency by neglecting to incorporate parameters that contribute to their inefficiency. Thus, in our model, we had careful handled the exogenous variables that could mitigate heterogeneity effect in measuring inefficiency. The specific of our study is research article. The research work is scientifically rigorous research in the sense that, the methodology and conclusion reported are in high ethical standards and rigor. The Sampling design, database, and the finding reflect perfectly the real world of the sector of seed cotton producing from China and the main points of the article are widely describing with great care. In our work, you will find, for example, a brief history of the evolution and development of the empirical study of the stochastic frontier and the efficiency measurement. In our work, you will also find a summary of the current status of the economic sector industry of the Chinese's cotton production, which reflects our deep knowledge on the sector dealing. Thus, we deemed this aspect in introducing will useful for readers of our article once will be published in your journal. Finally, in our work, we carry out also a great number of analyses in order to give more proof, confidence and to make a little difference with other works which have ignored these analyses. For instance, we had made the effort first to find out whether our analyzed on the production cost of seed cotton in China satisfies the requirements of the economic theories of the production cost function before heading forward in the estimating farm's efficiency.

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