Comparison of Technical Efficiencies for Rice Production in Bangladesh Under Two Alternative Tenurial Systems

K. M. Mostafizur Rahman, Peter Michael Schmitz and Tobias C. Wronka
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K. M. Mostafizur Rahman: Ph.D. student of the Institute of Agricultural Policy and MaAssistant Professor of Agricultural Statistics, Bangladesh Agricultural University
Peter Michael Schmitz: Professor of Agricultural Policy and Marketing Research, stus-Liebig-University Giessen, Germany
Tobias C. Wronka: Ph.D. student of the Institute of Agricultural Policy and Marketing Research, Justus-Liebig-University Giessen, Germany

Bangladesh Development Studies, 2002, vol. 28, issue 1-2, 137-160

Abstract: Technical efficiencies of rice crops of Bangladesh are investigated under owner -operated farming and share-cropping using Cobb- Douglas stochastic production frontiers. Mean technical efficiencies obtained by owner -operators for Boro, Aus and Aman rice crops are 86 per cent, 93 per cent and 80 per cent, respectively, whereas mean technical efficiencies obtained by share-croppers for Boro and Aman rice are respectively 73 per cent and 72 per cent. There are technical inefficiency effects in the production of all rice crops under these two tenure systems. The study reveals that owner -operators are technically more efficient than share-croppers in the production of all rice crops. To reduce the differences of technical efficiencies between owner -operator and share-cropper, a perfect share leasing system is inevitable. A perfect share lease would provide the profit incentive for the most efficient combination of resources in the same manner as a cash lease or owner operation. The cost of variable factors (where land is fixed) must be divided between the landlord and share-cropper in proportions paralleling the division of the product

Keywords: Rice; Crop production; Production efficiency; Production estimates; Stochastic models; Farmers; Efficiency metrics; Sustainable agriculture; Maximum likelihood estimation (search for similar items in EconPapers)
JEL-codes: A10 (search for similar items in EconPapers)
Date: 2002
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