The Impacts of Governance on Agricultural Efficiency
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The main goal of the study is to explain the interaction between governance and agricultural
efficiency. The study used a Panel Data Regression Analysis to investigate the relationship between
six governance indicators and agricultural efficiency. Agricultural efficiency was measured as the
ratio of agricultural outputs to agricultural inputs by Data Envelopment Analysis (DEA). In this
study, we combined DEA and a regression analysis. In the first stage, DEAmodel was used (outputoriented,
constant return to scale model) to analyze the agricultural efficiency of countries. In the
second stage, Panel Data Regression Analysis was used to find the effects of Worldwide
Governance Indicators (WGI) and country type on country's efficiency. The results showed that
governance indicators are not efficient on the agricultural efficiency.