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Comparison of Technical Efficiencies for Rice Production in Bangladesh Under Two Alternative Tenurial Systems

Author

Listed:
  • Rahman, K. M. Mostafizur

    (Ph.D. student of the Institute of Agricultural Policy and MaAssistant Professor of Agricultural Statistics, Bangladesh Agricultural University)

  • Schmitz , Peter Michael

    (Professor of Agricultural Policy and Marketing Research, stus-Liebig-University Giessen, Germany)

  • Wronka , Tobias C.

    (Ph.D. student of the Institute of Agricultural Policy and Marketing Research, Justus-Liebig-University Giessen, Germany)

Abstract

Technical efficiencies of rice crops of Bangladesh are investigated under owner -operated farming and share-cropping using Cobb- Douglas stochastic production frontiers. Mean technical efficiencies obtained by owner -operators for Boro, Aus and Aman rice crops are 86 per cent, 93 per cent and 80 per cent, respectively, whereas mean technical efficiencies obtained by share-croppers for Boro and Aman rice are respectively 73 per cent and 72 per cent. There are technical inefficiency effects in the production of all rice crops under these two tenure systems. The study reveals that owner -operators are technically more efficient than share-croppers in the production of all rice crops. To reduce the differences of technical efficiencies between owner -operator and share-cropper, a perfect share leasing system is inevitable. A perfect share lease would provide the profit incentive for the most efficient combination of resources in the same manner as a cash lease or owner operation. The cost of variable factors (where land is fixed) must be divided between the landlord and share-cropper in proportions paralleling the division of the product

Suggested Citation

  • Rahman, K. M. Mostafizur & Schmitz , Peter Michael & Wronka , Tobias C., 2002. "Comparison of Technical Efficiencies for Rice Production in Bangladesh Under Two Alternative Tenurial Systems," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 28(1-2), pages 137-160, March-Jun.
    • Handle: RePEc:ris:badest:0431
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    Cited by:

    1. Malabayabas, Maria Luz L. & Mishra, Ashok K. & Mayorga, Joaquin, 2023. "Spouses' Access to Financial Services: Estimating Technological and Managerial Gaps in Production," IZA Discussion Papers 16578, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Rice; Crop production; Production efficiency; Production estimates; Stochastic models; Farmers; Efficiency metrics; Sustainable agriculture; Maximum likelihood estimation;
    All these keywords.

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General

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