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Agricultural efficiency of rice farmers in Myanmar : a case study in selected areas

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  • Nay, Myo Aung

Abstract

This paper try to analyze unique data set for rice producing agricultural households in some selected areas of Bago and Yangon divisions to examine the households' profit efficiency and the relationship between farm and household attributes and profit inefficiency using a Cobb-Douglas production frontier function. The frequency distribution reveals that the mean technical inefficiency is 0.1627 with a minimum of 3 percent and maximum of 73 percent which indicates that, on average, about 16% of potential maximum output is lost owing to technical inefficiency in both studied areas. While 85% of the sample farms exhibit profit inefficiency of 20% or less, about 40% of the sample farms is found to exhibit technical inefficiency of 20% or less, indicating that among the sample farms technical inefficiency is much lower than profit inefficiency.

Suggested Citation

  • Nay, Myo Aung, 2011. "Agricultural efficiency of rice farmers in Myanmar : a case study in selected areas," IDE Discussion Papers 306, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper306
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    References listed on IDEAS

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    1. Kumbhakar, Subal C & Bhattacharyya, Arunava, 1992. "Price Distortions and Resource-Use Efficiency in Indian Agriculture: A Restricted Profit Function Approach," The Review of Economics and Statistics, MIT Press, vol. 74(2), pages 231-239, May.
    2. Lockheed, Marlaine E & Jamison, Dean T & Lau, Lawrence J, 1980. "Farmer Education and Farm Efficiency: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 29(1), pages 37-76, October.
    3. Abdulai, Awudu & Huffman, Wallace, 2000. "Structural Adjustment and Economic Efficiency of Rice Farmers in Northern Ghana," Economic Development and Cultural Change, University of Chicago Press, vol. 48(3), pages 503-520, April.
    4. Jirong Wang & Eric J. Wailes & Gail L. Cramer, 1996. "A Shadow-Price Frontier Measurement of Profit Efficiency in Chinese Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 146-156.
    5. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
    6. Lau, Lawrence J & Yotopoulos, Pan A, 1971. "A Test for Relative Efficiency and Application to Indian Agriculture," American Economic Review, American Economic Association, vol. 61(1), pages 94-109, March.
    7. Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-846, September.
    8. 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.
    9. 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.
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    Cited by:

    1. Patterson-Andrews, Hazel & Pemberton, Carlisle A., 2014. "Factors Affecting Profitability Of Small Scale Farming In Southern Trinidad & Tobago," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 2(3), pages 1-18, July.
    2. DONKOR, Emmanuel & OWUSU-SEKYERE, Enoch & OWUSU, Victor & JORDAAN, Henry, 2016. "Impact Of Row-Planting Adoption On Productivity Of Rice Farming In Northern Ghana," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 19(2), pages 1-10, October.
    3. Nan Wutyi SAN & Ismail ABDLATIF & Zainal Abidin bin MOHAMED, 2013. "Farm Efficiency and Socioeconomic Determinants of Rain-Fed Rice Production in Myanmar: A Non-Parametric Approach," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 3(11), pages 1401-1413, November.
    4. Donkor, Emmanuel & Owusu, Victor, 2014. "Effects of land tenure systems on resource-use productivity and efficiency in Ghana’s rice industry," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 9(4), pages 1-14, December.
    5. Mbonane, Nobuhle Duduzile, 2018. "An analysis of farmers’ preferences for crop insurance: a case of maize farmers in Swaziland," Research Theses 334771, Collaborative Masters Program in Agricultural and Applied Economics.

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    More about this item

    Keywords

    Myanmar; Rice; Farmers; Agricultural economies; Household; Efficiency; Production frontier function;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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