Determination of the Efficiency of Resource Utilization of Agricultural Enterprises in Urban Sprawl; in Case of Konya Province
Abstract
The
economic profitability explains operational capital usage efficiency of the
agricultural enterprises in the urban sprawl according to the opportunity cost.
Agricultural
enterprises show different structure according to the characteristics of the
environment, and it is observed that the enterprises in the urban
sprawl are
different from those in rural areas. Because of the loss of rural character
under the pressure of urbanization, there are significant differences in the
capital structure of agricultural enterprises in urban
sprawl in terms
of building and land capital. In this study, economic profitability is
determined as low as 1.16%. In study area, 91 sample
enterprises are identified according to
stratified random sampling method. Data Envelopment Analysis is used to
determine the technical effectiveness of agricultural lands in the urban
sprawl. In
examined enterprises, the
average technical efficiency score per enterprise is calculated as 0.59 (0.589)
as a result of the analysis. This value explains that 41% of the variables in
the model are inactive. The reason of this ineffectiveness is determined as the
interest and depreciation of land and housing capital. Pure technical
efficiency ratio which describes the suitability of the combination of the
production factors is determined as 0.70 and the scale efficiency which
describes the proportional cohesion between production amount and used
resources is determined as 0.83. In order to eliminate this inefficiency due to
the high level of housing and land capitals, the entrepreneurs should be
directed to ensure that they use the resources effectively.
Keywords
Supporting Institution
Project Number
References
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Details
Primary Language
English
Subjects
Agricultural Policy
Journal Section
Research Article
Authors
Publication Date
September 30, 2019
Submission Date
May 9, 2019
Acceptance Date
August 21, 2019
Published in Issue
Year 2019 Volume: 29 Number: 3
