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Journal of Rural Development

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An Analysis of Forest Product Processing Centers’ Efficiency and its Determinants
Author Lee, Hyunkeun
Views 490 Publication Date 2024.03.20
Original
As the market opening under the FTA accelerates amid the stagnation of the forestry market in Korea, the task of enhancing competitiveness in the forestry sector and stabilizing the income of families becomes very important. Accordingly, the government is supporting the forest product processing center project, and performance evaluation is required accordingly. In this paper, 42 executives and 31 producer organizations and corporations that received support for the forest product processing center project were separated to estimate the bias corrected efficiency using the bootstrap method according to Simar and Wilson(2007)'s algorithm 2, and the truncated regression analysis model using the efficiency value was analyzed using the bootstrap method. As a result of efficiency estimation, it was analyzed that the efficiency value according to Simar and Wilson(2007)'s algorithm 2 was lower than that of the general DEA in both the entire sample and producer group and corporation. In terms of the causes of inefficiency, it was analyzed that inefficiency occurred in terms of pure technology rather than scale. As a result of analyzing the factors affecting the efficiency of the forest product processing center for all samples, it was found that the organizational form, center type, investment, mushrooms, wild vegetables, metropolitan area and Honam area variables were significant. As a result of analysis of producer organizations and corporations, it was found that the investment and wild vegetables variables were not statistically significant, and the variables in the Gangwon region were statistically significant, which was different from the results of the overall sample analysis.

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