IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v38y2006i21p2567-2580.html
   My bibliography  Save this article

Market deregulation, trade liberalization and productive efficiency in Bangladesh agriculture: an empirical analysis

Author

Listed:
  • Ruhul Salim
  • Amzad Hossain

Abstract

The impact of trade liberalization and of market deregulation in general, on the performance of agriculture remains contentious and empirical issue in the literature. Following the random coefficient frontier modelling framework, this paper attempts to contribute to this debate by computing the farm-specific productive efficiency indices in Bangladesh agriculture before and after reform. It also examines the impact of some farm-specific and policy variables on productive efficiency. The empirical results show that there are wide variations in productive efficiency across farms and regions and the average efficiency of all regions increased modestly by 8 percentage points from the pre-reform to post-reform period. The efficiency differentials are largely explained by farm size, infrastructure, households' off-farm income and the reduction of government anti-agricultural bias in relation to trade and domestic policies. The implication of these results suggests the need for further policy reform to augment productive efficiency.

Suggested Citation

  • Ruhul Salim & Amzad Hossain, 2006. "Market deregulation, trade liberalization and productive efficiency in Bangladesh agriculture: an empirical analysis," Applied Economics, Taylor & Francis Journals, vol. 38(21), pages 2567-2580.
    • Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2567-2580
    DOI: 10.1080/00036840500427585
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427585
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036840500427585?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. repec:bla:jecsur:v:13:y:1999:i:2:p:149-72 is not listed on IDEAS
    2. Schwallie, Daniel P., 1982. "Unconstrained maximum likelihood estimation of contemporaneous covariances," Economics Letters, Elsevier, vol. 9(4), pages 359-364.
    3. Jayne, T. S. & Govereh, J. & Mwanaumo, A. & Nyoro, J. K. & Chapoto, A., 2002. "False Promise or False Premise? The Experience of Food and Input Market Reform in Eastern and Southern Africa," World Development, Elsevier, vol. 30(11), pages 1967-1985, November.
    4. Surjit S. Sidhu & Carlos A. Baanante, 1981. "Estimating Farm-Level Input Demand and Wheat Supply in the Indian Punjab Using a Translog Profit Function," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(2), pages 237-246.
    5. Morteza Haghiri & James Nolan & Kien Tran, 2004. "Assessing the impact of economic liberalization across countries: a comparison of dairy industry efficiency in Canada and the USA," Applied Economics, Taylor & Francis Journals, vol. 36(11), pages 1233-1243.
    6. Dembele, Niama Nango & Staatz, John M., 1999. "The Impact Of Market Reform On Agricultural Transformation In Mali," Staff Paper Series 11717, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    7. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-444, June.
    8. Laure Latruffe & Kelvin Balcombe & Sophia Davidova & Katarzyna Zawalinska, 2004. "Determinants of technical efficiency of crop and livestock farms in Poland," Applied Economics, Taylor & Francis Journals, vol. 36(12), pages 1255-1263.
    9. K. P. Kalirajan & R. T. Shand, 1999. "Frontier Production Functions and Technical Efficiency Measures," Journal of Economic Surveys, Wiley Blackwell, vol. 13(2), pages 149-172, April.
    10. Liu, Zinan & Zhuang, Juzhong, 2000. "Determinants of Technical Efficiency in Post-Collective Chinese Agriculture: Evidence from Farm-Level Data," Journal of Comparative Economics, Elsevier, vol. 28(3), pages 545-564, September.
    11. Alauddin, Mohammad & Tisdell, Clem, 1987. "Trends and projections for Bangladeshi food production : An alternative viewpoint," Food Policy, Elsevier, vol. 12(4), pages 318-331, November.
    12. Ahmed, Raisuddin, 1995. "Liberalization of agricultural input markets in Bangladesh: process, impact, and lessons," Agricultural Economics, Blackwell, vol. 12(2), pages 115-128, August.
    13. Boyce, James K., 1987. "Trends and projections for Bangladeshi food production : Rejoinder to M. Alauddin and C. Tisdell," Food Policy, Elsevier, vol. 12(4), pages 332-336, November.
    14. Tim Coelli & Sanzidur Rahman & Colin Thirtle, 2002. "Technical, Allocative, Cost and Scale Efficiencies in Bangladesh Rice Cultivation: A Non‐parametric Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(3), pages 607-626, November.
    15. Abdul Wadud & Ben White, 2000. "Farm household efficiency in Bangladesh: a comparison of stochastic frontier and DEA methods," Applied Economics, Taylor & Francis Journals, vol. 32(13), pages 1665-1673.
    16. Tybout, James R., 1992. "Making noisy data sing : Estimating production technologies in developing countries," Journal of Econometrics, Elsevier, vol. 53(1-3), pages 25-44.
    17. Raisuddin Ahmed, 1995. "Liberalization of agricultural input markets in Bangladesh: process, impact, and lessons," Agricultural Economics, International Association of Agricultural Economists, vol. 12(2), pages 115-128, April.
    18. Anthony Rezitis & Kostas Tsiboukas & Stauros Tsoukalas, 2002. "Measuring technical efficiency in the Greek agricultural sector," Applied Economics, Taylor & Francis Journals, vol. 34(11), pages 1345-1357.
    19. Najma Sharif & Atul Dar, 1996. "An empirical study of the patterns and sources of technical inefficiency in traditional and HYV rice cultivation in Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 32(4), pages 612-629.
    20. Ahmed, Raisuddin & Hossain, Mahabub, 1990. "Developmental impact of rural infrastructure in Bangladesh:," Research reports 83, International Food Policy Research Institute (IFPRI).
    21. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ligia Alba Melo-Becerra & Antonio José Orozco-Gallo, 2015. "Eficiencia técnica de los hogares con producción agropecuaria en Colombia," Documentos de trabajo sobre Economía Regional y Urbana 227, Banco de la Republica de Colombia.
    2. Islam, Zeenatul & Sabiha, Noor E & Salim, Ruhul, 2022. "Integrated environment-smart agricultural practices: A strategy towards climate-resilient agriculture," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 59-72.
    3. Gautam, Madhur & Ahmed, Mansur, 2019. "Too small to be beautiful? The farm size and productivity relationship in Bangladesh," Food Policy, Elsevier, vol. 84(C), pages 165-175.
    4. Lakner, Sebastian & Brenes Muñoz, Thelma & Aedo, Edinson Rivera & Brümmer, Bernhard, 2013. "Technical Efficiency in the Chilean Agribusiness Sector – a Stochastic Meta-Frontier Approach," 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152356, International Agricultural Trade Research Consortium.
    5. Rivera Aedo, Edinson & Lakner, Sebastian & Brümmer, Bernhard, 2011. "Technical efficiency in the Chilean agribusiness sector," IAMO Forum 2011: Will the "BRICs Decade" Continue? – Prospects for Trade and Growth 10, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
    6. Dayal Talukder & Love Chile, 2018. "Technological Innovation And Total Factor Productivity Growth Of Rice Production In Bangladesh In The Post-Liberalisation Era," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 6(2), pages 50-70, December.
    7. Dayal Talukder, 2014. "Agricultural Trade Liberalization and Poverty in Rural Bangladesh," Poverty & Public Policy, John Wiley & Sons, vol. 6(3), pages 282-307, September.
    8. Lin Liu & Honggang Sun, 2019. "The Impact of Collective Forestland Tenure Reform on the Forest Economic Efficiency of Farmers in Zhejiang Province," Sustainability, MDPI, vol. 11(8), pages 1-15, April.
    9. Talukder, Dayal & Chile, Love, 2014. "Characteristics of Rice Cultivation and Rural Rice Market in Bangladesh: Evidence from a Survey," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 15(2), pages 1-17.
    10. Ali, Ershad & Talukder, Dayal, 2010. "Agricultural Trade Liberalisation and Economic Growth in Developing Countries: Analysis of Distributional Consequences," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 11(2), pages 1-13, August.
    11. Amirul Islam & Ruhul Salim & Harry Bloch, 2016. "Does Regional Integration Affect Efficiency And Productivity Growth? Empirical Evidence From South Asia," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 28(2), pages 107-122, July.
    12. Yi Wang & Yingming Zhu & Maojun Yu, 2022. "Measuring the implementation effects of rural revitalization in China’s Jiangsu Province: Under the analytical framework of “deconstruction, assessment and brainstorming”," Growth and Change, Wiley Blackwell, vol. 53(3), pages 1146-1169, September.
    13. Anthony N. Rezitis & Maria A. Kalantzi, 2016. "Investigating Technical Efficiency and Its Determinants by Data Envelopment Analysis: An Application in the Greek Food and Beverages Manufacturing Industry," Agribusiness, John Wiley & Sons, Ltd., vol. 32(2), pages 254-271, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Anik, Asif Reza & Bauer, Siegfried, 2015. "Impact of resource ownership and input market access on Bangladeshi paddy growers’ efficiency," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 4(3), April.
    2. Ashok K. Mishra & Saleem Shaik & Aditya R. Khanal & Subir Bairagi, 2018. "Contract farming and technical efficiency: Evidence from low†value and high†value crops in Nepal," Agribusiness, John Wiley & Sons, Ltd., vol. 34(2), pages 426-440, March.
    3. Zahidul Islam, K.M. & Sumelius, John & Bäckman, Stefan, 2012. "Do differences in technical efficiency explain the adoption rate of HYV rice? Evidence from Bangladesh," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 13(1), pages 1-18.
    4. Abdul Wadud, 2013. "Impact of Microcredit on Agricultural Farm Performance and Food Security in Bangladesh," Working Papers 14, Institute of Microfinance (InM).
    5. Rahman, Sanzidur, 2003. "Profit efficiency among Bangladeshi rice farmers," Food Policy, Elsevier, vol. 28(5-6), pages 487-503.
    6. Radha R. Ashrit, 2023. "Estimation of technical efficiency of Indian farms for major crops during 2013–2014 and 2017–2018: a stochastic Frontier production approach," SN Business & Economics, Springer, vol. 3(2), pages 1-32, February.
    7. Athukorala, Wasantha & Lee, Boon L. & Wilson, Clevo & Fujii, Hidemichi & Managi, Shunsuke, 2023. "Measuring the impact of pesticide exposure on farmers’ health and farm productivity," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 851-862.
    8. Phatima MAMARDASHVILI & Dierk SCHMID, 2013. "Performance of Swiss dairy farms under provision of public goods," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 59(7), pages 300-314.
    9. Hai-Dang Nguyen & Thanh Ngo & Tu DQ Le & Huong Ho & Hai T.H. Nguyen, 2019. "The Role of Knowledge in Sustainable Agriculture: Evidence from Rice Farms’ Technical Efficiency in Hanoi, Vietnam," Sustainability, MDPI, vol. 11(9), pages 1-10, April.
    10. Álvaro Ramírez Suárez, 2013. "Análisis de eficiencia económica de fincas arroceras: una aplicación de una función determinística de ingresos brutos frontera," Revista Lebret, Universidad Santo Tomás - Bucaramanga, vol. 5, pages 213-240, December.
    11. Tian, Xu & Sun, Feifei & Zhou, Yingheng, 2015. "Technical Efficiency and Its Determinants in China's Hog Production," 2015 Conference, August 9-14, 2015, Milan, Italy 212718, International Association of Agricultural Economists.
    12. Madau, Fabio A., 2012. "Technical and scale efficiency in the Italian Citrus Farming: A comparison between Stochastic Frontier Analysis (SFA) and Data Envelopment Analysis(DEA) Models," MPRA Paper 41403, University Library of Munich, Germany.
    13. Nguyen To-The & Tuan Nguyen-Anh, 2021. "Impact of government intervention to maize efficiency at farmer’s level across time: a robust evidence in Northern Vietnam," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(2), pages 2038-2061, February.
    14. Álvaro Ramírez Suárez, 2013. "Análisis de eficiencia económica de fincas arroceras: una aplicación de una función determinística de ingresos brutos frontera," Revista Lebret, Universidad Santo Tomás - Bucaramanga, vol. 5, pages 213-240, December.
    15. Luis R. Murillo‐Zamorano, 2004. "Economic Efficiency and Frontier Techniques," Journal of Economic Surveys, Wiley Blackwell, vol. 18(1), pages 33-77, February.
    16. 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.
    17. Gauri Khanna, 2006. "Technical Efficiency in Production and Resource Use in Sugar Cane: A Stochastic Frontier Production Function Analysis," IHEID Working Papers 15-2006, Economics Section, The Graduate Institute of International Studies.
    18. Jerzy Marzec & Andrzej Pisulewski & Artur Prędki, 2019. "Efektywność techniczna i produktywność polskich gospodarstw rolnych specjalizujących się w uprawach polowych," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 2, pages 95-125.
    19. repec:ags:bdbjaf:258303 is not listed on IDEAS
    20. 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.
    21. Jun Ho Seok & Hanpil Moon & GwanSeon Kim & Michael R. Reed, 2018. "Is Aging the Important Factor for Sustainable Agricultural Development in Korea? Evidence from the Relationship between Aging and Farm Technical Efficiency," Sustainability, MDPI, vol. 10(7), pages 1-15, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2567-2580. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.