VARIOUS APPROACHES TO MEASUREMENT OF TECHNICAL EFFICIENCY IN NORTH-WEST FRONTIER PROVINCE OF PAKISTAN

Ashok Parikh and Mir Kalan Shah

Pakistan Journal of Applied Economics, 1996, vol. 12, issue 1, 31-65

Abstract: An extensive research has been conducted in the past on the measurement of technical efficiency. Various approaches namely (a) non-parametric, (b) grouping method, (c) linear programming, (d) statistical frontier and (e) stochastic frontier methods are discussed. The present study proposes a comparative evaluation of these approaches using the cross-section data of 397 farms of the North-West Frontier Province of Pakistan for 1988-89. The CobbDouglas and Translog production functions are specified to estimate technical efficiency. The estimated farm level technical efficiency is explained by socio-economic and demographic factors. It is shown that credit, education, age and assets size contribute positively towards the improvement of efficiency.

Date: 1996
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