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Evaluation of Economic Efficiency of Wheat Farms in a Region of Bangladesh under the Input Orientation Model

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  • Mohd. Kamruzzaman
  • Basil Manos
  • Moss. Begum

Abstract

This study pertains to a region of Khulna Division, a southwestern part of Bangladesh. The economic efficiency of wheat farms in this rural area was estimated through Data Envelopment Analysis (DEA) of farm level data for the year 2002. The overall mean efficiency score of the sample farms was 0.86 meaning that the economic efficiency of the sample farms was 14 percent below what can be achieved. Computed efficiency scores were subsequently regressed on explanatory variables using a Tobit analysis, to help in identifying inefficiency related factors. Nine explanatory variables were identified as being related to efficiency. Finally, how an inefficient farm becomes an efficient one was estimated and it was found that 34.29 percent of the TSP fertilizer was being over used in the farm levels of Bangladesh, which is the highest misallocation in the study area. To this end, a constant return to scale and input orientation model has been applied to a sample of 150 wheat farms.

Suggested Citation

  • Mohd. Kamruzzaman & Basil Manos & Moss. Begum, 2005. "Evaluation of Economic Efficiency of Wheat Farms in a Region of Bangladesh under the Input Orientation Model," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 11(1), pages 123-142.
    • Handle: RePEc:taf:rjapxx:v:11:y:2005:i:1:p:123-142
    DOI: 10.1080/09503110500348008
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    Cited by:

    1. Valdes, Constanza & Hallahan, Charlie & Harvey, David, 2015. "Brazil’s Broiler Industry: Increasing Efficiency and Trade," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(A), pages 1-13, July.
    2. Hassan, Md.Mahmudul, 2018. "Application of Stochastic Frontier Model for Poultry Broiler Production: Evidence from Dhaka and Kishoreganj Districts, Bangladesh," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 41(01), pages 65-87, March.
    3. Sana Sadaf & Khalid Riaz, 2012. "Does Access to Modern Marketing Channels Improve Dairy Enterprises’ Efficiency? A Case Study of Punjab, Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 17(1), pages 63-82, Jan-June.
    4. Ismat Ara Begum & Mohammad Jahangir Alam & Jeroen Buysse & Aymen Frija & Guido Van Huylenbroeck, 2012. "Contract farmer and poultry farm efficiency in Bangladesh: a data envelopment analysis," Applied Economics, Taylor & Francis Journals, vol. 44(28), pages 3737-3747, October.
    5. Anirban Nandy & Piyush Kumar Singh & Alok Kumar Singh, 2021. "Systematic Review and Meta- regression Analysis of Technical Efficiency of Agricultural Production Systems," Global Business Review, International Management Institute, vol. 22(2), pages 396-421, April.
    6. Yeboah, Osei-Agyeman & Gunden, Cihat & Allen, Albert J. & Akuffo, Akua S., 2011. "Efficiency Measure in Nitrogen Management under U.S. Trade Induced Corn Production," 2011 Annual Meeting, February 5-8, 2011, Corpus Christi, Texas 98698, Southern Agricultural Economics Association.

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