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Production Functions for Wheat Farmers in Selected Districts of Pakistan: An Application of a Stochastic Frontier Production Function with Time-varying Inefficiency Effects

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  • George E. Battese

    (University of New England, Armidale, NSW, Australia.)

  • Sohail J. Malik

    (International Food Policy Research Institute, Washington, D. C, USA.)

  • Sumiter Broca

    (International Food Policy Research Institute, Washington, D. C, USA.)

Abstract

Two models of technical inefficiency with a stochastic production frontier are considered in this paper. In the first model, it is assumed that the frontier itself does not vary with time, while in the second, the frontier is allowed to move. These models are applied to four years of panel data on wheat farmers in four districts of Pakistan Faisalabad and Attock in the Punjab, Badin in Sindh, and Dir in the NWFP. Using essentially the same stochastic frontier production function in each of the four districts involved, different stochastic specifications for the inefficiency effects are obtained for die different districts. Technical efficiencies of production of the individual farmers are predicted in each year in which they are observed. Varying patterns of technical inefficiency are observed. The null hypothesis (of no technical inefficiency) cannot be rejected in only one district. In the other districts, while inefficiencies appear to be present in all of them, they are declining at a fairly rapid pace in one. The results highlight the importance of analysis at a disaggregated level because it is clear that both the rate of technical change and relative efficiencies vary across regions and explicit cognisance must be taken of this both in research and policy formulation.

Suggested Citation

  • George E. Battese & Sohail J. Malik & Sumiter Broca, 1993. "Production Functions for Wheat Farmers in Selected Districts of Pakistan: An Application of a Stochastic Frontier Production Function with Time-varying Inefficiency Effects," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(3), pages 233-268.
    • Handle: RePEc:pid:journl:v:32:y:1993:i:3:p:233-268
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    References listed on IDEAS

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    Cited by:

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    3. Rouf, Abdur, 2015. "Conventional vs Natural Flood Control and Drainage Managements in a Tidal Coastal Zone: An Evaluation from a Productive Efficiency Perspective," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 256023, Agricultural Economics Society.
    4. George Battese & Sumiter Broca, 1997. "Functional Forms of Stochastic Frontier Production Functions and Models for Technical Inefficiency Effects: A Comparative Study for Wheat Farmers in Pakistan," Journal of Productivity Analysis, Springer, vol. 8(4), pages 395-414, November.
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    6. Md. Azizul Baten & Masud Rana & Sumonkanti Das & Md. Abdul Khaleque, 2006. "Technical Efficiency of Some Selected Manufacturing Industries in Bangladesh: A Stochastic Frontier Analysis," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 11(2), pages 23-41, Jul-Dec.
    7. Alvarez, Antonio & del Corral, Julio & Tauer, Loren W., 2012. "Modeling Unobserved Heterogeneity in New York Dairy Farms: One-Stage versus Two-Stage Models," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 41(3), pages 1-11, December.
    8. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
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    10. Gatti, Nicolas & Lema, Daniel & Brescia, Victor, 2015. "A Meta-Frontier Approach to Measuring Technical Efficiency and Technology Gaps in Beef Cattle Production in Argentina," 2015 Conference, August 9-14, 2015, Milan, Italy 211647, International Association of Agricultural Economists.
    11. Alvarez, Antonio & del Corral, Julio & Tauer, Loren W., 2012. "Modeling Unobserved Heterogeneity in New York Dairy Farms: One-Stage versus Two-Stage Models," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 41(3), pages 1-11, December.
    12. Rouf, Abdur, 2018. "A Novel Approach to Verifying Evaluation of Agricultural Products with Productive Efficiency: An Empirical Study," 2018 Conference (62nd), February 7-9, 2018, Adelaide, Australia 273523, Australian Agricultural and Resource Economics Society.
    13. Abid A. Burki & Haq Nawaz Shah, 1998. "Stochastic Frontier and Technical Efficiency of Farms in Irrigated Areas of Pakistan's Punjab," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(3), pages 275-291.
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    15. Md Abdur Rouf, 2020. "Evaluation of Agricultural Projects by Parametric Cost Efficiency and Productivity-gap Approaches: An Empirical Study of Flood Control and Drainage Systems in the Southwest Coastal Area of Bangladesh," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 22.
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