The Impacts of Governance and Education on Agricultural Efficiency: An International Analysis

Abstract

The main aim of this study is to explain the interaction between governance, education and agricultural efficiency and to expose the impacts of governance and education on agricultural efficiency by a global context. Agricultural efficiency was measured as the ratio of agricultural outputs to agricultural inputs by Data Envelopment Analysis (DEA). Model's inputs are agricultural land (km2), fertilizer (tons), the number of tractors, and labor. The output is produced add value in agricultural area as USD currency. In this study, we combined DEA and a regression analysis in a worldwide context. For this purpose, in the first stage, we used DEA model (output-oriented, constant return to scale model) to analyze the agricultural efficiency of countries. And in the second stage, we used Panel Data Regression Analysis to find the effects of Worldwide Governance Indicators (WGI), education index, and country type on country's efficiency.