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A stochastic frontier approach to total factor productivity measurement in Bangladesh crop agriculture, 1961-92

Author

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  • Tim Coelli

    (School of Economics, University of Queensland, Australia)

  • Sanzidur Rahman

    (School of Economic Studies, University of Manchester, UK)

  • Colin Thirtle

    (Department of Environmental Science and Technology, Imperial College London, UK)

Abstract

This paper applies a stochastic production frontier model to measure total factor productivity growth, technical efficiency change and technological change in Bangladesh crop agriculture for the 31 observations from 1960|61 to 1991|92, using data for 16 regions. The results reveal that technical change followed a U-shaped pattern, rising from the early 1970s, when the green revolution varieties were adopted, giving an overall rate of technical progress at 0.27 per cent per year. However, technical efficiency declined throughout, at an estimated annual rate of 0.47 per cent. The combined effect of slow technical progress, dominated by the fall in technical efficiency resulted in total factor productivity (TFP) declining at a rate of 0.23 per cent per annum, with the rate of decline increasing in the later years. TFP change is shown to depend on the green revolution technology and agricultural research expenditures. Copyright © 2003 John Wiley & Sons, Ltd.

Suggested Citation

  • Tim Coelli & Sanzidur Rahman & Colin Thirtle, 2003. "A stochastic frontier approach to total factor productivity measurement in Bangladesh crop agriculture, 1961-92," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(3), pages 321-333.
    • Handle: RePEc:wly:jintdv:v:15:y:2003:i:3:p:321-333
    DOI: 10.1002/jid.975
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    References listed on IDEAS

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    1. Akhter U. Ahmed & Rajan K. Sampath, 1992. "Effects of Irrigation-Induced Technological Change in Bangladesh Rice Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(1), pages 144-157.
    2. Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-1248, September.
    3. 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.
    4. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
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