IDEAS home Printed from https://ideas.repec.org/a/zbw/espost/243104.html
   My bibliography  Save this article

Comparative Advantage and Cost Efficiency of Rice-Producing Farms in Bangladesh: A Policy Analysis

Author

Listed:
  • Islam, Mohammad Ariful

Abstract

This study aims to investigate whether Bangladesh rice still has comparative advantage if fertilizer subsidy is lifted up, and to what extent the reduction of cost inefficiency raise comparative advantage. For that purpose, we calculate “Domestic Resource Cost (DRC)” as an indicator of comparative advantage, and estimate “cost inefficiency indicator” applying stochastic cost efficiency approach, using Bangladesh Integrated Household Survey data. Based on these indicators, we estimate the impacts of abolishing fertilizer subsidy program and improving cost efficiency on comparative advantage of Bangladesh rice. The results of analyses show; 1) dry season rice has comparative advantage while wet season rice does not, if fertilizer subsidy program is abolished; 2) if fertilizer subsidy is abolished, comparative advantage in overall rice production vanishes; 3) improvement of cost efficiency has positive effects on retrieving comparative advantage even if fertilizer subsidy program is abolished. These findings suggest that there is a scope for Bangladesh to increase global competitiveness by increasing cost efficiency of the rice farms targeting gradual reduction of input subsidy.

Suggested Citation

  • Islam, Mohammad Ariful, 2016. "Comparative Advantage and Cost Efficiency of Rice-Producing Farms in Bangladesh: A Policy Analysis," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 52(3), pages 85-96.
    • Handle: RePEc:zbw:espost:243104
    DOI: 10.7310/arfe.52.85
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/243104/1/Mohammad%20Ariful%20Islam_2016_Rural%20Problems.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.7310/arfe.52.85?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
    ---><---

    References listed on IDEAS

    as
    1. Coelli, Tim J., 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 1-27, December.
    2. Shahabuddin, Quazi & Dorosh, Paul A., 2002. "Comparative advantage in Bangladesh crop production," MTID discussion papers 47, International Food Policy Research Institute (IFPRI).
    3. 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.
    4. Banik, Arindam, 1994. "Technical Efficiency of Irrigated Farms in a Village of Bangladesh," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 49(1).
    5. Bruno, Michael, 1972. "Domestic Resource Costs and Effective Protection: Clarification and Synthesis," Journal of Political Economy, University of Chicago Press, vol. 80(1), pages 16-33, Jan.-Feb..
    6. Timothy J. Coelli & D.S. Prasada Rao & Christopher J. O’Donnell & George E. Battese, 2005. "An Introduction to Efficiency and Productivity Analysis," Springer Books, Springer, edition 0, number 978-0-387-25895-9, June.
    7. 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. Islam, Mohammad Ariful & Sarkar, Md. Abdur Rouf & Rahman, Mohammad Chhiddikur & Rahaman, Md. Shajedur, 2021. "Assessing the Level of Comparative Advantage for the Boro Rice Production in Bangladesh: A Time Series Analysis," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 19(3), pages 361-370.
    2. Rahaman, Md Shajedur & Haque, Sadika & Sarkar, Md Abdur Rouf & Rahman, Mohammad Chhiddikur & Reza, Md Salim & Islam, Mohammad Ariful & Siddique, Md Abu Bakr, 2021. "A Cost Efficiency Analysis of Boro Rice Production in Dinajpur District of Bangladesh," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 6(1), pages 67-77.

    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. Abdul Wadud, 2013. "Impact of Microcredit on Agricultural Farm Performance and Food Security in Bangladesh," Working Papers 14, Institute of Microfinance (InM).
    2. Hanousek, Jan & Kočenda, Evžen & Mašika, Michal, 2012. "Firm efficiency: Domestic owners, coalitions, and FDI," Economic Systems, Elsevier, vol. 36(4), pages 471-486.
    3. Ei Thazin Soe & Yoshifumi Takahashi & Mitsuyasu Yabe, 2024. "Adoption of Improved Soybean Varieties and Differences in Technical Efficiency Between Improved and Local Soybean Varieties in Southern Shan State, Myanmar," Journal of Agricultural Science, Canadian Center of Science and Education, vol. 12(8), pages 1-55, April.
    4. Zainab Bibi & Dilawar Khan & Ihtisham ul Haq, 2021. "Technical and environmental efficiency of agriculture sector in South Asia: a stochastic frontier analysis approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(6), pages 9260-9279, June.
    5. Babakholov Sherzod & Kyung-Ryang Kim & Sang Hyeon Lee, 2018. "Agricultural Transition and Technical Efficiency: An Empirical Analysis of Wheat-Cultivating Farms in Samarkand Region, Uzbekistan," Sustainability, MDPI, vol. 10(9), pages 1-11, September.
    6. Musa, H. Ahmed & Lemma, Z. & Endrias, G., 2015. "Measuring Technical, Economic and Allocative Efficiency of Maize Production in Subsistence Farming: Evidence from the Central Rift Valley of Ethiopia," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 9(3), pages 1-12, December.
    7. Ali M. Oumer & Amin Mugera & Michael Burton & Atakelty Hailu, 2022. "Technical efficiency and firm heterogeneity in stochastic frontier models: application to smallholder maize farms in Ethiopia," Journal of Productivity Analysis, Springer, vol. 57(2), pages 213-241, April.
    8. Kangile, Rajabu Joseph, 2015. "Efficiency In Production By Smallholder Rice Farmers Under Cooperative Irrigation Schemes In Pwani And Morogoro Regions, Tanzania," Research Theses 265681, Collaborative Masters Program in Agricultural and Applied Economics.
    9. 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.
    10. 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.
    11. Djuraeva, Mukhayyo & Bobojonov, Ihtiyor & Kuhn, Lena & Glauben, Thomas, 2023. "The impact of agricultural extension type and form on technical efficiency under transition: An empirical assessment of wheat production in Uzbekistan," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 203-221.
    12. Mai, Nhat Chi, 2015. "Efficiency of the banking system in Vietnam under financial liberalization," OSF Preprints qsf6d, Center for Open Science.
    13. Arsalanbod, Mohammadreza, 2005. "The Efficiency of Farmers in North-West of Iran," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 60(1), pages 1-7.
    14. Joseph Kangile, Rajabu, 2015. "Efficiency in Production By Smallholder Rice Farmers Under Cooperative Irrigation Schemes in Pwani and Morogoro Regions, Tanzania," Research Theses 243447, Collaborative Masters Program in Agricultural and Applied Economics.
    15. Sanzidur Rahman & Mohammad Mizanul Haque Kazal & Ismat Ara Begum & Mohammad Jahangir Alam, 2017. "Exploring the Future Potential of Jute in Bangladesh," Agriculture, MDPI, vol. 7(12), pages 1-16, November.
    16. Maina, Florence Wanjiru & Mburu, John & Gitau, George Karuoya & Van Leeuwen, John, 2018. "Assessing The Economic Efficiency Of Milk Production Among Small-Scale Dairy Farmers In Mukurweini Sub-County, Nyeri County, Kenya," Dissertations and Theses 280032, University of Nairobi, Department of Agricultural Economics.
    17. Ferrara, Giancarlo & Vidoli, Francesco, 2017. "Semiparametric stochastic frontier models: A generalized additive model approach," European Journal of Operational Research, Elsevier, vol. 258(2), pages 761-777.
    18. Lundgren, Tommy & Marklund, Per-Olov & Zhang, Shanshan, 2016. "Industrial energy demand and energy efficiency – Evidence from Sweden," Resource and Energy Economics, Elsevier, vol. 43(C), pages 130-152.
    19. Khanal, Aditya & Koirala, Krishna & Regmi, Madhav, 2016. "Do Financial Constraints Affect Production Efficiency in Drought Prone Areas? A Case from Indonesian Rice Growers," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230087, Southern Agricultural Economics Association.
    20. Norman Gemmell & Patrick Nolan & Grant Scobie, 2017. "Public sector productivity: Quality adjusting sector-level data on New Zealand schools," Working Papers 2017/02, New Zealand Productivity Commission.

    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:zbw:espost:243104. 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zbwkide.html .

    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.