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Various Approaches To Measurement Of Technical Efficiency In North-West Frontier Province Of Pakistan

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  • Ashok PARIKH
  • Mir Kalan SHAH

Abstract

An extensive research has been conducted in the past on the measurement of technical efficiency. Various approaches namely (a) non-parametric, (b) grouping method, (c) linear programming, (d) statistical frontier and (e) stochastic frontier methods are discussed. The present study proposes a comparative evaluation of these approaches using the cross-section data of 397 farms of the North-West Frontier Province of Pakistan for 1988-89. The CobbDouglas and Translog production functions are specified to estimate technical efficiency. The estimated farm level technical efficiency is explained by socio-economic and demographic factors. It is shown that credit, education, age and assets size contribute positively towards the improvement of efficiency.

Suggested Citation

  • Ashok PARIKH & Mir Kalan SHAH, 1996. "Various Approaches To Measurement Of Technical Efficiency In North-West Frontier Province Of Pakistan," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 12(1), pages 31-65.
    • Handle: RePEc:pje:journl:article1996sumii
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    Cited by:

    1. 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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