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An Efficiency Analysis of Punjab’s Cotton-Wheat System

Author

Listed:
  • M. Ishaq Javed

    (Agriculture Officer, Sangla Hill, District Nankana Sahib.)

  • Sultan Ali Adil

    (Department of Agricultural Economics, University of Agriculture, Faisalabad.)

  • Sarfaraz Hassan

    (Department of Environmental and Resource Economics, University of Agriculture, Faisalabad.)

  • Asghar Ali

    (Department of Agricultural Economics, University of Agriculture, Faisalabad.)

Abstract

This study examines the technical, allocative, and economic efficiencies of the cotton-wheat farming system in Punjab, Pakistan. It also investigates the determinants of these efficiencies using a non-parametric data envelopment analysis (DEA) technique. Technical, allocative, and economic inefficiency scores are separately regressed on socioeconomic and farm-specific variables to identify the sources of inefficiency using a Tobit regression model. The mean technical, allocative, and economic efficiencies calculated for the system were 0.87, 0.44, and 0.37, respectively. Our results indicate that years of schooling and the number of contacts with extension agents have a negative impact on the inefficiency of cotton-wheat farming in Punjab.

Suggested Citation

  • M. Ishaq Javed & Sultan Ali Adil & Sarfaraz Hassan & Asghar Ali, 2009. "An Efficiency Analysis of Punjab’s Cotton-Wheat System," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 14(2), pages 97-124, Jul-Dec.
    • Handle: RePEc:lje:journl:v:14:y:2009:i:2:p:97-124
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    References listed on IDEAS

    as
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    6. Lissitsa, Alexej & Coelli, Tim J. & Rao, D.S. Prasada, 2005. "Agricultural Economics Education in Ukrainian Agricultural Universities: An Efficiency Analysis Using Data Envelopment Analysis," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24482, European Association of Agricultural Economists.
    7. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
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    Cited by:

    1. Khush Bukhat Zahid, 2023. "Household Market Participation, Access, and Farm Productivity in AJK: Evidence from Farm Household Data," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 62(3), pages 375-394.
    2. Khush Bukhat ZAHID, & Munir AHMED, 2018. "Climate change and profit efficiency in Punjab, Pakistan: Evidence from household-level panel data," Journal of Economics Library, KSP Journals, vol. 5(1), pages 85-98, March.
    3. Muhammad Aamir, Shahzad & Waqar, Akram & Muhammad, Khan, 2016. "Technical Efficiency Analysis of Wheat Farms in the Punjab, Pakistan: DEA Approach," MPRA Paper 81846, University Library of Munich, Germany, revised 01 Oct 2017.
    4. repec:mth:jas888:v:7:y:2019:i:1:p:115-127 is not listed on IDEAS
    5. Wei Wei & Zulqarnain Mushtaq & Amir Ikram & Muhammad Faisal & Zhang Wan-Li & Muhammad Irshad Ahmad, 2020. "Estimating the Economic Viability of Cotton Growers in Punjab Province, Pakistan," SAGE Open, , vol. 10(2), pages 21582440209, May.
    6. Abdul Hameed & Ihtsham ul Haq Padda & Abdul Salam, 2014. "Estimation of Productivity and Efficiency of Cotton Farmers: A Case Study of District Dera Ghazi Khan," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 6(2), pages 63-82, October.

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    More about this item

    Keywords

    Cotton; wheat; economic efficiency; data envelopment analysis.;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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