Impact of Agricultural Production Systems in Local Sustainable Development in Nicaragua, 1998-2005: DEA Malmquist a Product Oriented Index
DOI:
https://doi.org/10.5377/universitas.v4i1.1668Keywords:
Malmquist indices, Production system, Sustainable Local DevelopmentAbstract
This study demonstrates how Nicaragua’s agricultural production systems contribute to sustainable local development (SLD) during the periods 1998–2001 and the year 2005. The article is organized as follows: the first section presents a literature review on the DEA (Data Envelopment Analysis) methodology, systems approach, and the theory of sustainable local development; the second section addresses the type of data used; the third section explains the methodology applied; the fourth section is devoted to the results; and the final section presents the conclusions. The study uses the DEA methodology, along with the Malmquist index, to calculate the total factor productivity (TFP) change over the study period. This index is integrated into the econometric design of the Sustainable Local Development Model (SLDM) to measure its contribution to SLD. The research findings show that the forestry and backyard production subsystems exhibit an upward trend in TFP change. The variables used in the model explain less than 50% of the contribution to SLD, based on their significance level and degree of contribution. These variables are the social and productive ones, with the forestry and backyard production subsystems standing out.
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