Technical Efficiency of Small-Scale Marine Fishing Households: Evidence from a Stochastic Frontier Analysis

Authors

  • Ann Fernando Wayamba University of Sri Lanka
  • Udith Jayasinghe-Mudalige Wayamba University of Sri Lanka University of Massachusetts
  • Jagath Edirisinghe Wayamba University of Sri Lanka
  • Menuka Udugama Wayamba University of Sri Lanka
  • Keminda Herath Wayamba University of Sri Lanka
  • Sashika Guruge Wayamba University of Sri Lanka

Keywords:

Fisheries sector, Stochastic Frontier Analysis, Technical efficiency

Abstract

Stochastic Frontier analysis was used to estimate the technical efficiency and to explore the determinants of inefficiency of small-scale marine fishing households in Sri Lanka. Data were collected from a randomly selected sample of 124 fishing households from four coastal villages (Kadawatha, Ulhitiyawa, Kolinjadiya, Katuneriya) located in the Chilaw Fishing District from March to April 2014 by means of in-depth personal interviews carried out with the help of a pre-tested structured questionnaire, followed by on-site inspection of resources utilized by each household for marine fishing. Six Stochastic Frontiers were estimated, assuming three specifications for distribution of the inefficiency term (i.e. Half normal, Truncated normal, Exponential), for the Cobb-Douglas and Translogrithmic Frontiers. The Likelihood Ratio tests carried out in this context confirmed that the Translogrithmic form to be the best fit. The results reveal that Mean Technical Efficiency of the households was 59.8% in relation to the most efficient household in the sample, or stated differently, an efficiency gain of 40.2% can further be achieved with the existing resource-base. The inefficiency model indicates that increase in household size increases the efficiency due to increase in availability of labor. It highlights the necessity of capacity development of small-scale fishing communities, alongside provision of a schema of appropriate economic incentives to promote adoption of appropriate technology and coordinated action towards effective utilization of existing resource-base, which largely possess the characteristics of a ‘public good’

Author Biographies

Ann Fernando, Wayamba University of Sri Lanka

Ann Fernando is a Final Year Research Student specialized in agribusiness management of the Wayamba University of Sri Lanka.

Udith Jayasinghe-Mudalige, Wayamba University of Sri Lanka University of Massachusetts

Professor (Chair) of the Dept. of Agribusiness Management, Faculty of Agriculture & Plantation Management, Wayamba University of Sri Lanka and Visiting Fulbright Professor in the University of Massachusetts, USA. He obtained his B.Sc. (Agriculture) [First Class Hons.] and M.Sc. (Agric. Econ) degrees from the University of Peradeniya and PhD (Agric. Econ & Business) from the University of Guelph, Canada. He offers his service to a number of international and local organizations, including the WORLD BANK, UNICEF, IWMI, SANDEE, IFPRI, FAO and GEF, as a Consultant / Researcher, and contributed to over 300 research publications/communications as an author/co-author published worldwide. 

Jagath Edirisinghe, Wayamba University of Sri Lanka

Jagath Edirisinghe is a Senior Lecturer in the Wayamba University of Sri Lanka. His research interests include food and agricultural economics and marketing.

Menuka Udugama, Wayamba University of Sri Lanka

Menuka Udugama is a Lecturer in the Wayamba University of Sri Lanka and PhD candidate at the University of Reading, UK. Her research interests include agricultural, resource and environmental economics. 

Keminda Herath, Wayamba University of Sri Lanka

Keminda Herath is a Lecturer in the Wayamba University of Sri Lanka and PhD candidate at the University of Peradeniya, Sri Lanka. His research interests include statistical modelling. 

Sashika Guruge, Wayamba University of Sri Lanka

Sashika Guruge is a Lecturer in the Wayamba University of Sri Lanka and M.Phil. candidate at the Wayamba University of Sri Lanka. Her research interests include agricultural business, finance and accounting. 

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Published

2015-04-01

How to Cite

Fernando, A., Jayasinghe-Mudalige, U., Edirisinghe, J., Udugama, M., Herath, K., & Guruge, S. (2015). Technical Efficiency of Small-Scale Marine Fishing Households: Evidence from a Stochastic Frontier Analysis. International Journal of Economic Practices and Theories, 5(2), 69-77. Retrieved from http://ijept.eu/index.php/ijept/article/view/Technical_Efficiency_of_Small-Scale_Marine_Fishing_Households_

Issue

Vol. 5 No. 2 (2015)

Section

Articles

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