A Nonparametric Approach to Estimate Multiproduct and Product-specific Scale and Scope Economies for Agricultural Cooperatives
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The purpose of this research is to estimate product-specific and multiproduct economies of scale and economies of scope using a nonparametric data envelopment analysis (DEA) approach. Product-specific economies of scale exist for other product sales, but not for grain and farm inputs sales. Overall, multiproduct economies of scale and economies of scope exist. However, the median value of multiproduct scale economies are higher and greater than one for small cooperatives, which imply that cooperatives mergers likely to continue to exhaust the benefits from economies of scale.