Technical Efficiency Analysis of Wheat Farms in the Punjab, Pakistan: DEA Approach

Shahzad Muhammad Aamir, Akram Waqar and Khan Muhammad

MPRA Paper from University Library of Munich, Germany

Abstract: The wheat productivity in the Punjab is less than the potential maximum due to technical farm and management issues. The farm level panel survey data was used for the said purpose comprising 17 districts of the province of the Punjab from the period 2005-06 to 2007-08. The technical efficiency of wheat farms was analyzed using Data Envelopment Analysis (DEA) approach. Subsequently, the same was calculated by analyzing the socioeconomic factors responsible for (in) efficiency using Tobit Regression Model. The DEA didn’t accommodate statistical noise such as random shocks which were beyond the control of farmers. However, the technical efficiency of wheat farms was estimated using the DEA approach. The mean technical efficiency estimated through variable return to scale (VRS) was 60.13 percent and constant return to scale (CRS) was 56.61 percent. The results of analyses were supported by the literature. The technical efficiency could be improved by educating the young farmers, building road infrastructure and providing access to essential inputs to farmers. The study undertaken supports the argument that technically wheat farmers are less efficient in the Punjab, Pakistan.

Keywords: Data Envelopment Analysis; Variable Return to Scale; Constant Return to Scale. (search for similar items in EconPapers)
JEL-codes: Q12 Q18 (search for similar items in EconPapers)
Date: 2016-10-01, Revised 2017-10-01
New Economics Papers: this item is included in nep-agr, nep-cta and nep-eff
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