Technical efficiency study on Japanese marine fisheries applying stochastic frontier analysis and data envelopment analysis approaches

Abstract

Technical efficiency analysis was carried out targeting Japanese marine fishery production in 2013, applying both Stochastic Frontier Analysis (SFA) and Data Envelopment Analysis (DEA) approaches. Results showed the technical efficiency estimate of Japanese marine fishery production in 2013 was 0.783, 0.559 and 0.666 by means of SFA, DEA-CRS (constant returns to scale) and DEA-VRS (variable returns to scale), respectively. This indicates that a range of 22%-44% potential scope still exists for improving the current Japanese marine fishery production with the given inputs. Analysis of region-specific efficiencies showed Ehime Prefecture was the most efficient irrespective of estimation methods, while Osaka and Yamaguchi Prefectures were the least efficient using different analytical approaches. Comparison of the results between SFA and DEA shows that technical efficiency estimates applying SFA were closely associated with those by DEA, although the efficiency scores were higher by SFA approach.