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Inter‐Regional Farm Efficiency In Pakistan'S Punjab: A Frontier Production Function Study

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  • M. Ali
  • M. A. Chaudhry

Abstract

Agricultural production efficiency in four irrigated cropping regions of the Punjab province of Pakistan was compared on the basis of a probabilistic frontier production function estimated from whole‐farm survey data for the year 1984‐85. It is found that the gross income of farmers can be increased by 13% at the current levels of resource use if the production gap between ‘best practice’ and ‘average’ farmers is suitably narrowed in all cropping regions. This will increase profits by up to 40%. No significant difference in technical efficiency was found across the regions. Economic efficiency was similar across all cropping regions except in the cotton region, which had significantly lower economic efficiency due to higher allocative inefficiency, which in turn was attributable to the more dynamic production technologies being adopted in that region.

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  • M. Ali & M. A. Chaudhry, 1990. "Inter‐Regional Farm Efficiency In Pakistan'S Punjab: A Frontier Production Function Study," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(1), pages 62-74, January.
    • Handle: RePEc:bla:jageco:v:41:y:1990:i:1:p:62-74
    DOI: 10.1111/j.1477-9552.1990.tb00619.x
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    2. Coelli, Tim J., 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 1-27, December.
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    4. Alene, Arega D. & Hassan, Rashid M., 2003. "Measuring The Impact Of Ethiopia'S New Extension Program On The Productive Efficiency Of Farmers," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25919, International Association of Agricultural Economists.
    5. Rajendran, Srinivasulu, 2014. "Technical Efficiency of Fruit and Vegetable Producers in Tamil Nadu, India: A Stochastic Frontier Approach," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 11(1), pages 1-17, June.
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    7. Daniel Kipruto Tuitoek & Clement Cheruiyot Tison & Lydia Jebichii, 2020. "Analysis of Technical Efficiency of Small Scale Tea Production in Nandi Hills – Nandi County: A Data Envelopment Analysis Approach," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 4(6), pages 149-163, June.
    8. Guy Blaise Nkamleu, 2004. "L'échec de la croissance de la productivité agricole en Afrique francophone," Économie rurale, Programme National Persée, vol. 279(1), pages 53-65.
    9. Radha R. Ashrit, 2023. "Estimation of technical efficiency of Indian farms for major crops during 2013–2014 and 2017–2018: a stochastic Frontier production approach," SN Business & Economics, Springer, vol. 3(2), pages 1-32, February.
    10. Munir Ahmad & Sarfraz Khan Qureshi, 1999. "Recent Evidence on Farm Size and Land Productivity: Implications for Public Policy," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(4), pages 1135-1153.
    11. Guha, Pradyut & Mandal, Raju, 2021. "Technical Inefficiency of Maize Farming and Its Determinants in Different Agro-Climatic Regions of Sikkim, India," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 0(Number 2), June.
    12. Tadesse, Bedassa & Krishnamoorthy, S., 1997. "Technical efficiency in paddy farms of Tamil Nadu: An analysis based on farm size and ecological zone," Agricultural Economics, Blackwell, vol. 16(3), pages 185-192, August.
    13. Justice Djokoto, 2012. "Technical Efficiency of Agriculture in Ghana: A Time Series Stochastic Frontier Estimation Approach," Journal of Agricultural Science, Canadian Center of Science and Education, vol. 4(1), pages 154-154, January.
    14. Tumelo Francinah Ramukhithi & Khathutshelo Agree Nephawe & Takalani Judas Mpofu & Thomas Raphulu & Karen Munhuweyi & Fhulufhelo Vincent Ramukhithi & Bohani Mtileni, 2023. "An Assessment of Economic Sustainability and Efficiency in Small-Scale Broiler Farms in Limpopo Province: A Review," Sustainability, MDPI, vol. 15(3), pages 1-26, January.
    15. Bozoglu, Mehmet & Ceyhan, Vedat, 2007. "Measuring the technical efficiency and exploring the inefficiency determinants of vegetable farms in Samsun province, Turkey," Agricultural Systems, Elsevier, vol. 94(3), pages 649-656, June.
    16. Alene, Arega D. & Zeller, Manfred, 2005. "Technology adoption and farmer efficiency in multiple crops production in eastern Ethiopia: A comparison of parametric and non-parametric distance functions," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 6(1).
    17. Nwaru,Jude C. & Ndukwu,Patrick C., 2012. "Estimation of Farm Level Technical Efficiency and Its Determinants Among Male And Female Sweet Potato Farmers In Imo State, Nigeria," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 20(1), September.
    18. Abedullah & Khuda Bakhsh & Bashir Ahmad, 2006. "Technical Efficiency and its Determinants in Potato Production, Evidence from Punjab, Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 11(2), pages 1-22, Jul-Dec.
    19. B.C. Okoye & A. Abass & B. Bachwenkizi & G. Asumugha & B. Alenkhe & R. Ranaivoson & R. Randrianarivelo & N. Rabemanantsoa & I. Ralimanana, 2016. "Differentials in technical efficiency among smallholder cassava farmers in Central Madagascar: A Cobb Douglas stochastic frontier production approach," Cogent Economics & Finance, Taylor & Francis Journals, vol. 4(1), pages 1143345-114, December.
    20. Ali Al-Sharafat, 2013. "Technical Efficiency of Dairy Farms: A Stochastic Frontier Application on Dairy Farms in Jordan," Journal of Agricultural Science, Canadian Center of Science and Education, vol. 5(3), pages 1-45, February.
    21. Thiam, Abdourahmane & Bravo-Ureta, Boris E. & Rivas, Teodoro E., 2001. "Technical efficiency in developing country agriculture: a meta-analysis," Agricultural Economics, Blackwell, vol. 25(2-3), pages 235-243, September.
    22. Madeeha G. Qureshi & Sarfraz Khan Qureshi, 2004. "Impact of Changing Profile of Rural Land Market in Pakistan on Resource Allocation and Equity," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(4), pages 471-492.

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