IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/40955.html
   My bibliography  Save this paper

Technical Efficiency of Rural Nepalese Farmers as Affected by Farm Family Education and Extension Services

Author

Listed:
  • Bhatta, Kiran Prasad
  • Ishida, Akira
  • Taniguchi, Kenji
  • Sharma, Raksha

Abstract

An analysis of agricultural productivity revealed that capital, that is, inputs, other than land and labor, is an important production input that is also significant. Land also has a positive and significant contribution. Family labor is positive; however, hired labor is negative, though both are insignificant. Moreover, the technical inefficiency model revealed that agricultural extension services provided by non-governmental organizations have a positive and significant contribution, and it increases technical efficiency of the farm. Therefore we recommend policy that increases the role of non-governmental organizations in providing agricultural extension services. Similarly, the share of educated persons per household is also significantly and positively related to technical efficiency, so providing educational services to these households may also be helpful. However, in contrast to our expectation, government extension is found to have a negative effect on efficiency, though it is insignificant. As we can expect, because governmental organization takes the lion's share in terms of coverage, policies should be made favorable to improve their performance in providing agricultural extension services. An analysis of technical efficiency on farms revealed that on average they are operating well below the frontier, with the average technical efficiency being 69%; obviously there is ample room for improvement. With little changes in the production process, technical efficiency of the selected farms could be increased on average by up to 30%.

Suggested Citation

  • Bhatta, Kiran Prasad & Ishida, Akira & Taniguchi, Kenji & Sharma, Raksha, 2006. "Technical Efficiency of Rural Nepalese Farmers as Affected by Farm Family Education and Extension Services," MPRA Paper 40955, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:40955
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/40955/1/MPRA_paper_40955.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bravo-Ureta, Boris E. & Evenson, Robert E., 1994. "Efficiency in agricultural production: The case of peasant farmers in eastern Paraguay," Agricultural Economics, Blackwell, vol. 10(1), pages 27-37, January.
    2. Boris E. Bravo‐Ureta & Robert E. Evenson, 1994. "Efficiency in agricultural production: the case of peasant farmers in eastern Paraguay," Agricultural Economics, International Association of Agricultural Economists, vol. 10(1), pages 27-37, January.
    3. Mubarik Ali, 1996. "Quantifying the socio‐economic determinants of sustainable crop production: an application to wheat cultivation in the Tarai of Nepal," Agricultural Economics, International Association of Agricultural Economists, vol. 14(1), pages 45-60, April.
    4. Adams, Richard H, Jr, 1995. "Agricultural Income, Cash Crops, and Inequality in Rural Pakistan," Economic Development and Cultural Change, University of Chicago Press, vol. 43(3), pages 467-491, April.
    5. Som P. Pudasaini, 1983. "The Effects of Education in Agriculture: Evidence from Nepal," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(3), pages 509-515.
    6. Robert Evenson & Germano Mwabu, 2001. "The Effect of Agricultural Extension on Farm Yields in Kenya," African Development Review, African Development Bank, vol. 13(1), pages 1-23.
    7. Owens, Trudy & Hoddinott, John & Kinsey, Bill, 2003. "The Impact of Agricultural Extension on Farm Production in Resettlement Areas of Zimbabwe," Economic Development and Cultural Change, University of Chicago Press, vol. 51(2), pages 337-357, January.
    8. Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, vol. 38(3), pages 387-399, July.
    9. Wallace E. Huffman, 1974. "Decision Making: The Role of Education," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(1), pages 85-97.
    10. Kalirajan, K P, 1990. "On Measuring Economic Efficiency," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 5(1), pages 75-85, January-M.
    11. 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.
    12. 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.
    13. Ali, Mubarik, 1996. "Quantifying the socio-economic determinants of sustainable crop production: an application to wheat cultivation in the Tarai of Nepal," Agricultural Economics, Blackwell, vol. 14(1), pages 45-60, April.
    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. Koirala, Bishwa S. & Bohara, Alok K. & Devkota, Satis & Upadhyaya, Kamal P., 2019. "Community managed hydropower, spillover effect and agricultural productivity: The case of rural Nepal," World Development Perspectives, Elsevier, vol. 13(C), pages 67-74.
    2. Shrestha, Rudra Bahadur & Huang, Wen- Chi & Pradhan, Upasana, 2017. "Evaluating The Technical Efficiency Of Smallholder Vegetable Farms In Diverse Agroecological Regions Of Nepal," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 5(01), January.

    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. Kiran Prasad Bhatta & Akira Ishida & Kenji Taniguchi & Raksha Sharma, 2008. "Whose Extension Matters? Role of Governmental and Non-Governmental Agricultural Extension on the Technical Efficiency of Rural Nepalese Farms," Journal of South Asian Development, , vol. 3(2), pages 269-295, October.
    2. Bozoglu, Mehmet & Ceyhan, Vedat, 2007. "Measuring the technical efficiency and exploring the inefficiency determinants of vegetable farms in Samsun province, Turkey," Agricultural Systems, Elsevier, vol. 94(3), pages 649-656, June.
    3. Amer Ait Sidhoum & K Hervé Dakpo & Laure Latruffe, 2022. "Trade-offs between economic, environmental and social sustainability on farms using a latent class frontier efficiency model: Evidence for Spanish crop farms," PLOS ONE, Public Library of Science, vol. 17(1), pages 1-17, January.
    4. Tim J. Coelli, 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 219-245, December.
    5. Ariel Dinar & Giannis Karagiannis & Vangelis Tzouvelekas, 2002. "Evaluating the Impact of Public and Private Agricultural Extension on Farms Performance: A Non-Neutral Stochastic Frontier Approach," Working Papers 0205, University of Crete, Department of Economics.
    6. Tzouvelekas, Vangelis & Pantzios, Christos J. & Fotopoulos, Christos, 2001. "Technical efficiency of alternative farming systems: the case of Greek organic and conventional olive-growing farms," Food Policy, Elsevier, vol. 26(6), pages 549-569, December.
    7. Thiam, Abdourahmane & Bravo-Ureta, Boris E. & Rivas, Teodoro E., 2001. "Technical efficiency in developing country agriculture: a meta-analysis," Agricultural Economics, Blackwell, vol. 25(2-3), pages 235-243, September.
    8. Qian Liu & Yongmu Jiang & Carl‐Johan Lagerkvist & Wei Huang, 2023. "Extension services and the technical efficiency of crop‐specific farms in China," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(1), pages 436-459, March.
    9. Bravo-Ureta, Boris E. & Pinheiro, Antonio E., 1993. "Efficiency Analysis Of Developing Country Agriculture: A Review Of The Frontier Function Literature," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 22(01), pages 1-14, April.
    10. Abdul Wadud, 2013. "Impact of Microcredit on Agricultural Farm Performance and Food Security in Bangladesh," Working Papers 14, Institute of Microfinance (InM).
    11. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
    12. Pantzios, Christos J. & Rozakis, Stelios & Tzouvelekas, Vangelis, 2002. "Assessing the Perspectives of EU Cotton Farming: Technical and Scale Efficiencies of Greek Cotton Growers," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24844, European Association of Agricultural Economists.
    13. Munir Ahmad & Sarfraz Khan Qureshi, 1999. "Recent Evidence on Farm Size and Land Productivity: Implications for Public Policy," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(4), pages 1135-1153.
    14. Tzouvelekas, Vangelis & Pantzios, Christos J. & Fotopoulos, Christos, 2001. "Economic Efficiency in Organic Farming: Evidence from Cotton Farms in Viotia, Greece," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 33(1), pages 35-48, April.
    15. Medhin, Haileselassie A. & Köhlin, Gunnar, 2008. "Soil Conservation and Small-Scale Food Production in Highland Ethiopia: A Stochastic Metafrontier Approach," RFF Working Paper Series dp-08-22-efd, Resources for the Future.
    16. Mulwa, Richard & Kabubo-Mariara, Jane, 2017. "Productive Efficiency and Its Determinants in a Changing Climate: A Monotonic Translog Stochastic Frontier Analysis," EfD Discussion Paper 17-6, Environment for Development, University of Gothenburg.
    17. Basanta R. Dhungana & Peter L. Nuthall & Gilbert V. Nartea, 2004. "Measuring the economic inefficiency of Nepalese rice farms using data envelopment analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 347-369, June.
    18. Chen, Zhuo & Huffman, Wallace E. & Rozelle, Scott, 2009. "Farm technology and technical efficiency: Evidence from four regions in China," China Economic Review, Elsevier, vol. 20(2), pages 153-161, June.
    19. Karagiannis, Giannis & Tzouvelekas, Vangelis, 2001. "Self-Dual Stochastic Production Frontiers and Decomposition of Output Growth: The Case of Olive-Growing Farms in Greece," Agricultural and Resource Economics Review, Cambridge University Press, vol. 30(2), pages 168-178, October.
    20. Paul, Satya & Shankar, Sriram, 2018. "Modelling Efficiency Effects in a True Fixed Effects Stochastic Frontier," MPRA Paper 87437, University Library of Munich, Germany.

    More about this item

    Keywords

    Technical Efficiency; Nepal; Farming; Agricultural Extension Services; NGO Extension;
    All these keywords.

    JEL classification:

    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

    Statistics

    Access and download statistics

    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:pra:mprapa:40955. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.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.