AN ANALYSIS OF TECHNICAL EFFICIENCY OF VEGETABLE‘S HOUSEHOLDS IN MONGOLIA
AN ANALYSIS OF TECHNICAL EFFICIENCY OF VEGETABLE‘S HOUSEHOLDS IN MONGOLIA

Summary/Abstract: Efficiency is one of the most important concept in production. Specifically, technical efficiency is expressed as the side of production and defined as the level of production that ratio between the observed output(s) to the potential output(s). The aim of this study is to analyse the technical efficiency of vegetable’s households in Khovd province of West region in Mongolia. The Western region is one of main producer in vegetable production and produces approximately 20 percent of total vegetables production in Mongolia (National Statistics office of Mongolia, 2017). We defined the technical efficiency using SFA (Stochastic Frontier Analysis) model. Primary data was collected from 100 vegetable’s households in Norjinkhairkhan bag of Buyant soum of Khovd province of Mongolia. Our resukts showed the mean technical efficiency was 34.7% which means that household’s vegetable’s production could have been increased further by 65.3% at same levels of inputs if households had been technically efficient

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