Modeling Technical Efficiency of Inshore Fishery Using Data Envelopment Analysis

Fishery industry contributes significantly to the economy of Malaysia. This study utilized Data Envelopment Analysis application in estimating the technical efficiency of fishery in Terengganu, a state on the eastern coast of Peninsular Malaysia, based on multiple output, i.e. total fish landing and income of fishermen with six inputs, i.e. engine power, vessel size, number of trips, number of workers, cost and operation distance. The data were collected by survey conducted between November and December 2014. The decision making units (DMUs) involved 100 fishermen from 10 fishery areas. The result showed that the technical efficiency in Season I (dry season) and Season II (rainy season) were 90.2% and 66.7% respectively. About 27% of the fishermen were rated to be efficient during Season I, meanwhile only 13% of the fishermen achieved full efficiency 100% during Season II. The results also found out that there was a significance difference in the efficiency performance between the fishery areas.