Household Market Participation, Access, and Farm Productivity in AJK: Evidence from Farm Household Data

Khush Bukhat Zahid
Additional contact information
Khush Bukhat Zahid: Subject Matter Specialist, at Department of Agriculture, Muzaffarabad AJK

The Pakistan Development Review, 2023, vol. 62, issue 3, 375-394

Abstract: The goal of the study is to get insight into agriculture production and market constraints in the AJK region. To achieve the objectives of the study, in the first stage, production function is estimated to obtain technical efficiency scores that are explicitly dependent on the farm and farm-specific variables. For this, single-step stochastic production estimation was applied. Tobit regression was employed in the second phase, with the market participation index as the dependent variable and market accessibility factors and efficiency as explanatory variables. The findings show that all inputs contributed favourably and considerably to farm production, with a mean technical efficiency of 58 percent, indicating that sample farmers might achieve the maximum production frontier by raising their efficiency to 42 percentage points. Among the determinants of technical efficiency farm size, land fragmentation and traction power negatively contributed to efficiency. Market participation was low as approximately 47 percent of the sampled farmers had less than 50 percent market participation and 20 percent did not participate in the market. The remaining 33 percent had market participation greater than 50 percent. The major factors that affect market participation were production efficiency, distance from roads and the market, credit facility, training, experiences, and internet and refrigerator facilities. All these variables were positive and significantly contributed to market participation.

Keywords: Market Participation; Stochastic Production Estimation; Technical Efficiency Scores; Farm Productivity (search for similar items in EconPapers)
JEL-codes: D24 Q12 Q13 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://file.pide.org.pk/pdfpdr/2023/375-394.pdf (application/pdf)

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:pid:journl:v:62:y:2023:i:3:p:375-394

Access Statistics for this article

More articles in The Pakistan Development Review from Pakistan Institute of Development Economics Contact information at EDIRC.
Bibliographic data for series maintained by Khurram Iqbal ().