Abstract:
The purpose of this paper is to elaborate the evaluating method of the rural development level of the Family Farms in the Republic of Moldova by using the stochastic frontier analysis (SFA). Family Farms is one of the main component of agricultural production of the country. By defining the methods for the structural optimization in the rural area we can evaluate the governmental agricultural policies. Economical efficiency indicators of the Family Farms activity reveals that the stochastic methods assign the performance rating for the rural development level. The using as arguments for the production function Cobb-Douglas the factors that have major influence on the Family Farms productivity, confirm the practical utility of this method in the rural development evaluation.
