Date of Graduation

5-2018

Document Type

Thesis

Degree Name

Master of Science in Agricultural Economics (MS)

Degree Level

Graduate

Department

Agricultural Economics and Agribusiness

Advisor/Mentor

Jennie Popp

Committee Member

Michael Thomsen

Second Committee Member

Arben Musliu

Keywords

Efficiency Use, Government Farm Grants, Greenhouse Vegetable Industry, Kosovo, Tomatoes And Peppers

Abstract

Determinants of greenhouse tomato and pepper production input efficiency affect a farmer’s decision to contribute to the vegetable sector in Kosovo. This research investigates the non-optimal use of inputs in the production of greenhouse tomatoes and peppers. Two studies were conducted to first measure input efficiency use and then to quantify the impact of the Ministry of Agriculture, Forestry and Rural Development (MAFRD) grant programs in the production of both crops. The first study applied data envelopment analysis (DEA), and linear and logistic regression to assess factors that influence efficiency in production. The second study used propensity score matching with logistic regression and genetic matching in order to evaluate any impacts, including income differences, between MAFRD grantees and non-grantees. The DEA results suggest that of the seven regions in Kosovo, most of the efficient greenhouse tomato producers were found in Prizren with a mean efficiency of 83 percent. While Prishtina had the most efficient greenhouse pepper producers with a mean efficiency of 99 percent. The logistic regression results with the use of technical efficiency (TE) scores as the dependent variable with a threshold produced different results to the linear regression. For example, estimates were more statistically significant under linear regression. The second study using matching techniques demonstrated that greenhouse farmers with higher yields and small total greenhouse areas were more likely to participate in the government’s grant program. The analysis revealed that MAFRD greenhouse tomato grantees compared to the non-grantees may make additionally an estimated of 1,777 euros. Insignificant estimate results were registered for the sample of greenhouse pepper farmers. Overall, the first study demonstrated that depending on the characteristics of the farms, factors related to production efficiency may affect input efficiency use. The second study suggested that a quality matching of the greenhouse tomato farmers could be achieved. However, only a partial matching was obtained among greenhouse pepper farmers.

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