Economic efficiency of Colombian agricultural companies: an empirical study of stochastic production frontiers

Abstract

By estimating a stochastic frontier production function that links labor and capital variables in 410 agricultural companies, the behavior of the agricultural productive efficiency in Colombia was evaluated, as well as its effects by geographic location and business size. Results showed that the factors that contribute most to the production function are related to the labor force, business liquidity and intangible assets, aspects that provide competitive advantages for medium and large companies; therefore, we suggest to improve the political-private strategy of business management with incentives for associativity, economic financing, access to R+D+i and transfer, directed to small agricultural companies.

Keywords

• location
• business size
• human capital
• current assets
• intangible assets