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Productivity, technical and allocative efficiency and farm size in wheat farming in India: a DEA approach

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  • Raghbendra Jha
  • Puneet Chitkara
  • Santanu Gupta

Abstract

Data Envelopment Analysis (DEA) is used to estimate allocative and technical inefficiency in the cultivation of wheat on 300 farms in the Indian Punjab for the periods 1981-82 and 1982-83. These measures of efficiency as well as farm yield are related to farm size. The paper appears to be the first to measure technical and allocative efficiency in agriculture jointly. It is discovered that, on the whole, large farms are technically and allocatively more efficient than small farms for both years. At the disaggregated level a broadly similar result obtains. Policy implications, particularly for land reforms, are discussed.

Suggested Citation

  • Raghbendra Jha & Puneet Chitkara & Santanu Gupta, 2000. "Productivity, technical and allocative efficiency and farm size in wheat farming in India: a DEA approach," Applied Economics Letters, Taylor & Francis Journals, vol. 7(1), pages 1-5.
    • Handle: RePEc:taf:apeclt:v:7:y:2000:i:1:p:1-5
    DOI: 10.1080/135048500351997
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    References listed on IDEAS

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    1. Kumbhakar, Subal C & Bhattacharyya, Arunava, 1992. "Price Distortions and Resource-Use Efficiency in Indian Agriculture: A Restricted Profit Function Approach," The Review of Economics and Statistics, MIT Press, vol. 74(2), pages 231-239, May.
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    1. World Bank, 2009. "Land Reform, Rural Development, and Poverty in the Philippines : Revisiting the Agenda," World Bank Publications - Reports 18545, The World Bank Group.
    2. Keijiro Otsuka & Yanyan Liu & Futoshi Yamauchi, 2016. "The future of small farms in Asia," Development Policy Review, Overseas Development Institute, vol. 34(3), pages 441-461, May.
    3. Agnes Gold & Stefan Gold, 2019. "Drivers of Farm Efficiency and Their Potential for Development in a Changing Agricultural Setting in Kerala, India," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(4), pages 855-880, September.
    4. Paudel, Gokul P. & KC, Dilli Bahadur & Rahut, Dil Bahadur & Khanal, Narayan P. & Justice, Scott E. & McDonald, Andrew J., 2019. "Smallholder farmers' willingness to pay for scale-appropriate farm mechanization: Evidence from the mid-hills of Nepal," Technology in Society, Elsevier, vol. 59(C).
    5. Irz, Xavier T. & Stevenson, James R., 2012. "Efficiency and Farm Size in Philippine Aquaculture. Analysis in a Ray Production Frontier Framework," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 1(2), pages 1-24, August.
    6. Simar, Leopold & Wilson, Paul, 2018. "Technical, Allocative and Overall Efficiency: Inference and Hypothesis Testing," LIDAM Discussion Papers ISBA 2018018, Université catholique de Louvain, Institute of Statistics, Biostatistics and Actuarial Sciences (ISBA).
    7. Paudel, Gokul P. & KC, Dilli Bahadur & Rahut, Dil Bahadur & Justice, Scott E. & McDonald, Andrew J., 2019. "Scale-appropriate mechanization impacts on productivity among smallholders: Evidence from rice systems in the mid-hills of Nepal," Land Use Policy, Elsevier, vol. 85(C), pages 104-113.
    8. Rangalal Mohapatra & Bondona Lama, 2024. "An analysis of the determinants of productivity of Assam tea growers," SN Business & Economics, Springer, vol. 4(12), pages 1-33, December.
    9. Camanho, Ana Santos & Silva, Maria Conceicao & Piran, Fabio Sartori & Lacerda, Daniel Pacheco, 2024. "A literature review of economic efficiency assessments using Data Envelopment Analysis," European Journal of Operational Research, Elsevier, vol. 315(1), pages 1-18.
    10. Sébastien MARCHAND & Huanxiu GUO, 2013. "Is participatory social learning a performance driver for Chinese smallholder farmers?," Working Papers 201318, CERDI.
    11. Aryal, Jeetendra Prakash & Rahut, Dil Bahadur & Thapa, Ganesh & Simtowe, Franklin, 2021. "Mechanisation of small-scale farms in South Asia: Empirical evidence derived from farm households survey," Technology in Society, Elsevier, vol. 65(C).
    12. Atul P. Kulkarni & Mahendra P. Tripathi & Damodar Gautam & Keshab B. Koirala & Manoj Kandel & Dhruba Regmi & Sudha Sapkota & Pervez H. Zaidi, 2023. "Willingness to Pay (WTP) for Heat-Tolerant Maize Hybrids in the Mid-Western Terai Region of Nepal," Sustainability, MDPI, vol. 15(4), pages 1-18, February.
    13. Tao Zhang, 2007. "Part-time farming: off-farm and on-farm household efficiency measurement of Ireland farm households," Working Papers 0705, Rural Economy and Development Programme,Teagasc.

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