PROFIT EFFICIENCY AMONG BANGLADESHI RICE FARMERS

Sanzidur Rahman ()

No 25898, 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa from International Association of Agricultural Economists

Abstract: Production inefficiency is usually analysed by its two components - technical efficiency and allocative efficiency. In this study we provide a direct measure of production efficiency of the Bangladeshi rice farmers using a stochastic profit frontier and inefficiency effects model. The data, which is for 1996, includes seven conventional inputs and several other background factors affecting production of modern or high yielding varieties (HYVs) of rice spread across 21 villages in three agro-ecological regions of Bangladesh. The results show that there are high levels of inefficiency in modern rice cultivation. The mean level of profit efficiency is 77% suggesting that an estimated 23% of the profit is lost due to a combination of both technical and allocative inefficiency in modern rice production. The efficiency differences are explained largely by infrastructure, soil fertility, experience, extension services, tenancy and share of non-agricultural income.

Keywords: Crop Production/Industries; Productivity Analysis (search for similar items in EconPapers)
Pages: 21
Date: 2003
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Citations: View citations in EconPapers (83)

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Related works:
Journal Article: Profit efficiency among Bangladeshi rice farmers (2003)
Working Paper: Profit Efficiency Among Bangladeshi Rice Farmers (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae03:25898

DOI: 10.22004/ag.econ.25898

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