Social changes, economic performance and development: the case of goat production in Oman

This study investigates socio-economic changes in a local community in Oman and assesses their impact on economic performance using the concept of technical efficiency. Data envelopment analysis (DEA) based on the Charnes–Cooper–Rhodes (CCR) and Banker–Charnes–Cooper (BCC) models is used to derive technical efficiency measures and Banker–Thrall model is used to compute returns-to-scale (RTS) intervals. Then the two-stage ordinary least squares (OLS) method was used to determine the components of technical efficiency. The influential inputs were found to be non-farm income and feeding cost. Farm size, flock size and family labor were not influential in predicting the output for technically efficient farmers. Major conclusions from the analysis were summarized as follows: (i) non-farm income is the major source of income; (ii) relatively large sizes of flock are maintained, however, declining grazing is compensated by increasing purchase of feed-stuff; and (iii) important inefficiencies exist in the use of resources. Based on these findings, policy recommendations were formulated. © 2003 Elsevier B.V. All rights reserved