EFFICIENCY OF THE NORTHEAST AGRICULTURAL SECTOR AND ITS DETERMINANTS IN 2006 AND 2017

Abstract

This article aims to measure the efficiency of the agricultural sector in northeastern municipalities and its determinants, based on data from 2006 and 2017, taken from the Agricultural Census. Specifically, it aims to calculate the technical efficiency scores of the agricultural sector in municipalities in the Northeast region and investigate the factors determining these scores. To measure efficiency, Data Envelopment Analysis (DEA) was used, and, to investigate its determining factors, the quantile regression model was used, for a sample of 1,263 northeastern municipalities. The results showed that almost all of these were extremely inefficient, indicating that producers are having limitations in their production process, and consequent waste of resources. Regarding the determinants of efficiency scores, it was found that the variables analyzed influenced the quantiles (0.25, 0.50 and 0.75) differently, with the percentage of establishments having access to financing and receiving technical guidance obtained a negative sign with the efficiency scores. Furthermore, the dummy referring to the location of the municipality in a semi-arid region and the relative participation of those whose leader has a regular secondary education recorded effects with greater magnitude in all quantiles.