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Abstract

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.

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