IDEAS home Printed from https://ideas.repec.org/a/adx/journl/v4y2022i1p139-144.html
   My bibliography  Save this article

Decomposition of Total Factor Productivity of Cash Crops in Pakistan: A Malmquist Data Envelop Analysis

Author

Listed:
  • Nazir Ullah Khan
  • Abdur Rehman

Abstract

This paper examined the total factor productivity of cash crops in Pakistan from 1980 to 2018. It uses Malmquist productivity index by applying data envelop analysis to estimate the changes in the production frontier. The Malmquist productivity index is used to decompose total factor productivity into technical change (TECCH) & technical efficiency change (EFFCH). Technical change (TECHCH) means shifts in the frontier or innovation, while efficiency change means catching up to the frontier. The Empirical results show an increase in the productivity of the cash crop in Pakistan. The objective of the study is the decomposition of the total factor productivity of cash crops in Pakistan. Three cash crops (sugarcane, cotton, and rice) and seven inputs (arable land, irrigated land, use of electricity, use of petroleum product, education, credit facility, and machinery) have been used. The study found a 2.2% increase in total factor productivity of cash crops in Pakistan which was mainly due to technological change, and the efficiency score of cash crops in Pakistan has been decreased relative to previous years, which is 8.40% in the period’s t+1, and compared to 10.44% in the period’s t. The government should invest in research and extension in order to provide better seed varieties, better infrastructure, and ensure credit facilities.

Suggested Citation

  • Nazir Ullah Khan & Abdur Rehman, 2022. "Decomposition of Total Factor Productivity of Cash Crops in Pakistan: A Malmquist Data Envelop Analysis," Journal of Economic Impact, Science Impact Publishers, vol. 4(1), pages 139-144.
    • Handle: RePEc:adx:journl:v:4:y:2022:i:1:p:139-144
    DOI: 10.52223/jei4012216
    as

    Download full text from publisher

    File URL: https://doi.org/10.52223/jei4012216
    Download Restriction: no
    File URL: https://libkey.io/10.52223/jei4012216?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Muhammad Iqbal & M. Azeem Khan & Munir Ahmad, 2002. "Adoption of Recommended Varieties: A Farm-level Analysis of Wheat Growers in Irrigated Punjab," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 41(1), pages 29-48.
    2. Mushtaq, Khalid & Dawson, P.J., 2003. "Yield Response In Pakistan Agriculture: A Cointegration Approach," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25931, International Association of Agricultural Economists.
    3. Shujat Ali, 2004. "Total Factor Productivity Growth in Pakistan’s Agriculture: 1960–1996," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(4), pages 493-513.
    4. Shujat Ali, 2005. "Total Factor Productivity Growth and Agricultural Research and Extension: An Analysis of Pakistan's Agriculture, 1960-1996," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 44(4), pages 729-746.
    5. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
    6. Munir Ahmad, 2001. "Agricultural Productivity Growth Differential in Punjab, Pakistan: A District-level Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 40(1), pages 1-25.
    7. Seiford, Lawrence M. & Thrall, Robert M., 1990. "Recent developments in DEA : The mathematical programming approach to frontier analysis," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 7-38.
    8. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, January.
    9. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    10. Fare, Rolf & Shawna Grosskopf & Mary Norris & Zhongyang Zhang, 1994. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries," American Economic Review, American Economic Association, vol. 84(1), pages 66-83, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xiang Ao & Lilyan E. Fulginiti, 2005. "Productivity Growth in China: Evidence from Chinese Provinces," Development and Comp Systems 0502024, University Library of Munich, Germany.
    2. Jorge E. Galán and & Miguel Sarmiento, 2008. "Banknote Printing at Modern central Banking: Trends, Costs and Efficiency," Money Affairs, CEMLA, vol. 0(2), pages 217-262, July-Dece.
    3. Chavas, Jean-Paul & Cox, Thomas L., 1999. "A Generalized Distance Function And The Analysis Of Production Efficiency," Staff Papers 12601, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    4. Jean‐Paul Chavas & Thomas L. Cox, 1999. "A Generalized Distance Function and the Analysis of Production Efficiency," Southern Economic Journal, John Wiley & Sons, vol. 66(2), pages 294-318, October.
    5. An, Duong Hoai, 2022. "Performance of universities in Vietnam," International Journal of Educational Development, Elsevier, vol. 91(C).
    6. Guillermo Vuletin, 2008. "What is the Size of the Pie? Measuring the Informal Economy in Latin America and the Caribbean," Money Affairs, CEMLA, vol. 0(2), pages 161-191, July-Dece.
    7. Helvoigt, Ted L. & Adams, Darius M., 2009. "A stochastic frontier analysis of technical progress, efficiency change and productivity growth in the Pacific Northwest sawmill industry," Forest Policy and Economics, Elsevier, vol. 11(4), pages 280-287, July.
    8. Forsund, Finn R. & Sarafoglou, Nikias, 2005. "The tale of two research communities: The diffusion of research on productive efficiency," International Journal of Production Economics, Elsevier, vol. 98(1), pages 17-40, October.
    9. Miguel SARMIENTOO & Andrés CEPEDA & Hernando MUTIS & Juan F. PÉREZ, 2013. "Nueva Evidencia sobre la Eficiencia de la Banca," Archivos de Economía 10705, Departamento Nacional de Planeación.
    10. Bannor, Frank & Dikgang, Johane & Gelo, Dambala, 2021. "Agricultural total factor productivity growth, technical efficiency, and climate variability in sub-Saharan Africa," EconStor Preprints 231310, ZBW - Leibniz Information Centre for Economics.
    11. Galdeano-Gomez, Emilio & Cespedes-Lorente, Jose & Rodriguez-Rodriguez, Manuel, 2006. "Productivity and Environmental Performance in Marketing Cooperatives: Incentive Schemes on the Horticultural Sector," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25738, International Association of Agricultural Economists.
    12. Jean‐Paul Chavas & Thomas L. Cox, 1997. "Production Analysis: A Non‐Parametric Time Series Application To Us Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 330-348, January.
    13. Pombo, Carlos & Taborda, Rodrigo, 2006. "Performance and efficiency in Colombia's power distribution system: Effects of the 1994 reform," Energy Economics, Elsevier, vol. 28(3), pages 339-369, May.
    14. Yongjun Li & Wenhui Hou & Weiwei Zhu & Feng Li & Liang Liang, 2021. "Provincial carbon emission performance analysis in China based on a Malmquist data envelopment analysis approach with fixed-sum undesirable outputs," Annals of Operations Research, Springer, vol. 304(1), pages 233-261, September.
    15. Hideyuki Mizobuchi & Valentin Zelenyuk, 2021. "Quadratic-mean-of-order-r indexes of output, input and productivity," Journal of Productivity Analysis, Springer, vol. 56(2), pages 133-138, December.
    16. Voigt, Peter, 2004. "Russlands Weg vom Plan zum Markt: Sektorale Trends und regionale Spezifika. Eine Analyse der Produktivitäts- und Effizienzentwicklungen in der Transformationsphase," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 28, number 93021, September.
    17. Sauer, Johannes & Graversen, Jesper T. & Park, Timothy A., 2006. "Breathtaking or Stagnating? - Productivity, Technical Change and Structural Dynamics in Danish Organic Farming," 2006 Annual meeting, July 23-26, Long Beach, CA 21481, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Yan Sun & Rupa Duttagupta, 2008. "Price Dynamics in the Eastern Caribbean," Money Affairs, CEMLA, vol. 0(2), pages 193-216, July-Dece.
    19. Hideyuki Mizobuchi, 2022. "Measuring the shift in the short-run production frontier," Evolutionary and Institutional Economics Review, Springer, vol. 19(1), pages 271-300, April.
    20. Odean B. White, 2008. "Determinants of Commercial Banks’ Cost of Financial Intermediation in Jamaica: a Maximum Likelihood Estimation Approach," Money Affairs, CEMLA, vol. 0(2), pages 129-159, July-Dece.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adx:journl:v:4:y:2022:i:1:p:139-144. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Iqbal Javed (email available below). General contact details of provider: https://www.scienceimpactpub.com/journals/index.php .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.