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An analysis of technical efficiency of rice farmers in pakistani Punjab

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  • Ahmad, Munir
  • Muhammad, Rafiq
  • Ali, Asgar

Abstract

This study uses stochastic Cobb-Douglas production frontier to estimate farm level technical efficiency of rice farms. Average technical efficiency of sampled farms was estimated to be 85 percent with a minimum of 57 percent and a maximum of 96 percent. The results further showed that the visits of agricultural extension agents on the farm or farmers' visits to extension office and the availability of agricultural credit played significant role in improving technical efficiency. More experienced (aged) and educated farmers also realized high productive efficiency and thus output; however, the effect was not statistically significant. These results imply that considerable scope exists in the sampled area to increase rice output by improving farm management and providing other facilities to the farmers.

Suggested Citation

  • Ahmad, Munir & Muhammad, Rafiq & Ali, Asgar, 1999. "An analysis of technical efficiency of rice farmers in pakistani Punjab," MPRA Paper 37702, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:37702
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    References listed on IDEAS

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    1. 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.
    2. A. Charnes & W. W. Cooper & E. Rhodes, 1981. "Evaluating Program and Managerial Efficiency: An Application of Data Envelopment Analysis to Program Follow Through," Management Science, INFORMS, vol. 27(6), pages 668-697, June.
    3. Kalirajan, K P, 1990. "On Measuring Economic Efficiency," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 5(1), pages 75-85, January-M.
    4. K. P. Kalirajan & J . C. Flinn*, 1983. "The Measurement Of Farm-Specific Technical Efficiency," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 2(2), pages 167-180.
    5. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    6. K. Kalirajan, 1981. "An Econometric Analysis of Yield Variability in Paddy Production," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 29(3), pages 283-294, November.
    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.
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    Cited by:

    1. Salman Khan & Syed Attaullah Shah & Shahid Ali & Amjad Ali & Lal K. Almas & Sania Shaheen, 2022. "Technical Efficiency and Economic Analysis of Rice Crop in Khyber Pakhtunkhwa: A Stochastic Frontier Approach," Agriculture, MDPI, vol. 12(4), pages 1-15, April.
    2. Renato Villano & Euan Fleming, 2006. "Technical Inefficiency and Production Risk in Rice Farming: Evidence from Central Luzon Philippines," Asian Economic Journal, East Asian Economic Association, vol. 20(1), pages 29-46, March.
    3. Villano, Renato A. & Fleming, Euan M., 2004. "Analysis of Technical Efficiency in a Rainfed Lowland Rice Environment in Central Luzon Philippines Using a Stochastic Frontier Production Function with a Heteroskedastic Error Structure," Working Papers 12906, University of New England, School of Economics.
    4. Abedullah & Khuda Bakhsh & Bashir Ahmad, 2006. "Technical Efficiency and its Determinants in Potato Production, Evidence from Punjab, Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 11(2), pages 1-22, Jul-Dec.
    5. Muhammad Arif Watto & Amin W. Mugera, 2014. "Measuring Production and Irrigation Efficiencies of Rice Farms: Evidence from the Punjab Province, Pakistan," Asian Economic Journal, East Asian Economic Association, vol. 28(3), pages 301-322, September.

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    More about this item

    Keywords

    Increased rice output; farm management; technical efficiency of rice farms; agriculture;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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