Social efficiency of agricultural credit unions in Brazil: an analysis from a regional perspective

Abstract

This work examines the social efficiency of the agricultural credit unions in Brazil. Additionally, we propose to investigate the influence of regional issues on the efficiency of these institutions. The analysis is developed from a non-parametric linear programming model of data envelopment analysis (DEA) with variable returns to scale (VRS) and output oriented, applied to 261 agricultural credit unions from 2012 to 2017. Overall, results point out to a low frequency of socially efficient unions, around 30% to 35%, predominantly in the Brazilian South and Northeast regions. In the Northeast, micro size unions are prevalent, highlighting the contributing potential of these institutions for the regional development. In the South, the socially efficient unions are larger and located in the areas where the competition is higher and whose agricultural activity is more dynamical and traditionally present, suggesting their important role in developing local agriculture.

Keywords
Agricultural Credit Unions; DEA; Social efficiency