Spatial Dependency of Technical Efficiency in Rice Farming: The Case of Bohol, Philippines
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We investigate spatial dependency among technical efficiency levels of rice producers on the Central Visayan island of Bohol, Philippines in two separate ecosystems: rainfed and irrigated. Results revealed evidence of spatial correlation in technical efficiency levels for both residential and plot neighborhood. There is a stronger spatial dependency among farmers in the rainfed ecosystem and particularly in the farm plot neighborhood structure. These results are most likely a result of producers facing similar environments with less control over their fields than producers in the irrigated ecosystem. This study also used spatial panel econometrics techniques to investigate spatial dimension in farmers’ technical efficiency in regression models. Results strongly show evidence of spatial dependence in household and farm plot neighborhood.