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An Analysis of the Technical Efficiency of Cotton Farmers in the Punjab province in Pakistan

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  • Hussain, Muhammad Sajid
  • Coelli, Tim J.
  • Simmons, Phil

Abstract

In this paper we analyse the technical efficiency of cotton farmers in the Punjab Province in Pakistan. Technical efficiency is measured relative to a stochastic frontier production function (SFPF). The estimated model includes a function in which technical efficiency is made an explicit function of firm specific factors (involving the levels of education and experience of farmers and other factors). For the purpose of analysis, survey data was collected for the 1996-97 season. Analysis is done on a district basis and the mean technical efficiencies obtained are 76, 78, 77 and 83 per cent for the districts of Arifwala, Bahawalpur, Multan and Rahim Yar Khan respectively. This study suggests that there is considerable room for productivity gains for the farms in the sample through better use of available resources. Results indicate that the incidence of virus on cotton crop has a significant influence upon efficiency levels, while age, education, experience, extension advice, access to credit, land ownership, tractor ownership, sowing time and off-farm income activity all have little influence on efficiency levels.

Suggested Citation

  • Hussain, Muhammad Sajid & Coelli, Tim J. & Simmons, Phil, 1999. "An Analysis of the Technical Efficiency of Cotton Farmers in the Punjab province in Pakistan," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 123815, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare99:123815
    DOI: 10.22004/ag.econ.123815
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    References listed on IDEAS

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    6. Timothy G. Taylor & H. Evan Drummond & Aloisio T. Gomes, 1986. "Agricultural Credit Programs and Production Efficiency: An Analysis of Traditional Farming in Southeastern Minas Gerais, Brazil," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(1), pages 110-119.
    7. 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.
    8. 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.
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    2. Darío Ezequiel Díaz, 2013. "La Distribución Eléctrica en Argentina y su Eficiencia Técnica:Una Aplicación del Análisis de Fronteras Estocásticas (SFA) Utilizando Funciones Distancia," Revista de Economía y Estadística, Universidad Nacional de Córdoba, Facultad de Ciencias Económicas, Instituto de Economía y Finanzas, vol. 51(1), pages 85-118, Diciembre.
    3. Watto, Muhammad Arif & Mugera, Amin William, 2013. "Measuring Groundwater Irrigation Efficiency in Pakistan: A DEA Approach Using the Sub-vector and Slack-based Models," Working Papers 144943, University of Western Australia, School of Agricultural and Resource Economics.
    4. Zengwei Xu & Jing Li & Jiliang Ma, 2022. "Impacts of Extension Contact on the Adoption of Formulated Fertilizers and Farm Performance among Large-Scale Farms in Rural China," Land, MDPI, vol. 11(11), pages 1-19, November.

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