Technical efficiency analysis of czech agricultural enterprises in pig farming sector

The aim of the research is to evaluate technical efficiency of Czech agricultural enterprises in pig farming sector and to analyse the impact of heterogeneity factors (farm size and specialization), and the impact of subsidies on farms technical efficiency. For the empirical analysis data of Czech farms from the FADN database for the years 2005-2011 was used. Research is conducted through Stochastic Frontier Analysis; the output distance function in translogarithmic form was estimated. The results indicate higher technical efficiency of larger farms with higher degree of specialization. Moreover, subsidies negatively impact technical efficiency, whereas the impact of subsidies on investments on technical efficiency is positive