Regional Simulation of Bootstrap Efficiency of Broi ler Production in Peninsular Malaysia

Abstract

Bootstrapping the DEA is one of the current methods of measuring robust efficiency by constructing a confidence interval and measuring th e noise (bias) in production. In this study, two estimators: the conventional Data Envelo pment Analysis (DEA) and bootstrap simulation with 2,000 bootstrap iterations were app lied on a cross sectional data of 296 broiler farms in Peninsular Malaysia. The objective of the study was to measure the robust technical efficiency, production bias and fa ctors motivating technical efficiency in the Northern, Southern, and East-central regions of Peninsular Malaysia. As a regional approach, the study found the existence of both ine fficiency and noise in broiler farms across regions of Peninsular Malaysia. Findings sho w disease infestation and unfavorable temperature as components of noise or exogenous fac tors or factors beyond farmers’ control in broiler production. The study identified age (+), education (+), experience (+), production system (-), number of poultry farms owne d (-), business status (+) and land tenure status (-) as statistically significant in a meliorating efficiency in broiler production. Result also show that strong statistically signific ant differences exist in the magnitude of technical efficiency scores between the two estimat ors across the regions. The study advocate for increase in scale of production as maj ority of the farmers produce at increasing returns to scale. Keywords : Bias-corrected, FEAR, Frontier, Iteration, Robust .