Soil Properties and the Technical Efficiency of Paddy Production in Malaysia: An Application of Stochastic Frontier Analysis

Mohd Khairul Hafifi Maidin (), Roslina Kamaruddin () and Shri Dewi Applanaidu ()
Additional contact information
Mohd Khairul Hafifi Maidin: Economic and Financial Policy Institute, School of Economics, Finance and Banking, Universiti Utara Malaysia/ Strategic Planning and Innovation Management Centre, Malaysian Agricultural Research and Development Institute, MARDI
Roslina Kamaruddin: Economic and Financial Policy Institute, School of Economics, Finance and Banking, Universiti Utara Malaysia
Shri Dewi Applanaidu: Economic and Financial Policy Institute, School of Economics, Finance and Banking, Universiti Utara Malaysia

Malaysian Journal of Economic Studies, 2023, vol. 60, issue 2, 275-298

Abstract: This study investigates the impact of soil properties on technical efficiency in paddy production, focusing on Malaysia’s two main paddy granaries: KADA and IADA BLS. These granaries play a significant role in Malaysia’s paddy production. The research employed three different models, with productivity as the dependent variable. In models 1 and 2, standard physical inputs were used as independent variables. Model 3, however, augmented the inputs with the addition of soil property variables. The empirical results revealed significant impacts from fertiliser, pesticide and land inputs, with the exception of land in model 1, where its coefficient was not statistically significant. Additionally, soil pH and the calcium+magnesium/potassium ratio emerged as crucial factors affecting paddy productivity. Importantly, incorporating soil property variables into the analysis resulted in a relatively lower technical inefficiency estimate. These insights are invaluable for policy formulation, highlighting key inputs that can optimise paddy production. The study’s findings regarding soil properties are particularly relevant for refining strategies in national paddy development programs, emphasising the importance of sustainable soil management. Looking ahead, the study advocates for comprehensive technical efficiency estimations that account for all forms of heterogeneity, including weather conditions, to ensure more accurate and insightful assessments.

Keywords: Maximum likelihood estimation; paddy production; Cobb-Douglas; translog; soil properties (search for similar items in EconPapers)
JEL-codes: O13 Q12 Q18 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mjr:journl:v:60:y:2023:i:2:p:275-298

DOI: 10.22452/MJES.vol60no2.7

Access Statistics for this article

Malaysian Journal of Economic Studies is currently edited by Lim Kian Ping

More articles in Malaysian Journal of Economic Studies from Faculty of Business and Economics, University of Malaya & Malaysian Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Malaysian Economic Association ().