Efficiency of Botswana Meat Commission: An Empirical Approach
14 Pages Posted: 21 Dec 2015
Date Written: January 2013
This paper investigates the efficiency status of Botswana Meat Commission (BMC), which is a public company. It employs transcendental logarithmic Stochastic Production Frontier to estimate efficiency, and ordered Logit model to ascertain determinants of the efficiency of BMC. Estimation data for the period of study (1979-2009) were accessed from the Bank of Botswana, Central Statistics Office and the BMC. The findings indicate that there were inefficiency in BMC of up to around 22%, and the main reasons for this include material inputs constraints (livestock availability), and insufficient penetration into the global market owing to low exchange rate competitiveness. The paper ends with some policies implications to deal with these constraints.
Keywords: Botswana meat commission, efficiency, ordered logit, parametric approach, stochastic frontier
JEL Classification: D24, P47, O13
Suggested Citation: Suggested Citation