IMPACT OF FARM-SPECIFIC FACTORS ON THE TECHNICAL INEFFICIENCY OF PRODUCING RICE IN BANGALDESH

Khandaker Md. Mostafizur Rahman, Peter Michael Schmitz and Tobias C. Wronka

Bangladesh Journal of Agricultural Economics, 1999, vol. 22, issue 2, 24

Abstract: The rice production of Bangladesh has been investigated using a Cobb-Douglas stochastic production function which incorporates a model for the technical inefficiency effects. Farm level primary data collected by stratified random sampling technique are used for this study. The factors identified in the stochastic production frontiers which are responsible for the increase of production are extension service, farm size, bullock power, age and experience. Seed, fertilizer, human labour and irrigation cost were identified as important factors for the increase of production for only Boro rice and were not important factors for Aus and Aman rice crops. The models for the technical inefficiency effects in the Cobb-Douglas stochastic production frontiers include the farm-specific factors age, education, experience, extension contact and farm size. The factors which influence the technical inefficiency effects are identified by simultaneous estimations of stochastic production frontiers and technical inefficiency effect models for different rice crops. The study reveals that the impacts of age,, experience, extension contact and farm size on the technical inefficiency effects are significantly negative which means that technical inefficiency effects decrease significantly with the increase in the magnitudes of these factors. The study also indicates that there are significant technical inefficiency effects in the production of all rice crops and the random component of the inefficiency effects explains that a significant portion of the difference between the observed output and the maximum production frontier output is caused by differences in farmers' levels of technical efficiency.

Keywords: Farm; Management (search for similar items in EconPapers)
Date: 1999
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Persistent link: https://EconPapers.repec.org/RePEc:ags:bdbjaf:202080

DOI: 10.22004/ag.econ.202080

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