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Estimation of Productivity and Efficiency of Cotton Farmers: A Case Study of District Dera Ghazi Khan

Author

Listed:
  • Abdul Hameed

    (Federal Urdu University of Arts, Science and Technology)

  • Ihtsham ul Haq Padda

    (Federal Urdu University of Arts, Science and Technology)

  • Abdul Salam

    (Federal Urdu University of Arts, Science and Technology)

Abstract

This study estimates total technical (TEcrs), pure technical (TEvrs), allocative (AE), and economic (EE) efficiencies of cotton growers in the district Dera Gazi Khan using data envelopment analysis (DEA) technique. The study finds 0.67, 0.94, 0.57, 0.54 and 0.71 average values of the total technical, pure technical, allocative, economic, and scale efficiencies, respectively. The study also tries to investigate the determinants of technical inefficiency of cotton growers and the slacks of inputs. The results indicate that human capital, research and development, and easy access to markets are major determinants of technical efficiency. The output orientation analysis shows that production of cotton can be increased by 6 maunds (240kgs) per acre under present availability of resources. The slack estimates show that 43 percent cost of inputs is used extra and on average Rs.11, 833 per acre can be saved in this account without loss of output. This study suggests that government should make a strategy to improve irrigation system and provide trainings for optimal utilization of inputs, and ban agro-shops that do not have licenses

Suggested Citation

  • Abdul Hameed & Ihtsham ul Haq Padda & Abdul Salam, 2014. "Estimation of Productivity and Efficiency of Cotton Farmers: A Case Study of District Dera Ghazi Khan," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 6(2), pages 63-82, October.
    • Handle: RePEc:bec:imsber:v:6:y:2014:i:2:p:63-82
    DOI: dx.doi.org/10.22547/BER/6.2.4
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    References listed on IDEAS

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    1. Bravo-Ureta, Boris E. & Evenson, Robert E., 1994. "Efficiency in agricultural production: The case of peasant farmers in eastern Paraguay," Agricultural Economics, Blackwell, vol. 10(1), pages 27-37, January.
    2. Boris E. Bravo‐Ureta & Robert E. Evenson, 1994. "Efficiency in agricultural production: the case of peasant farmers in eastern Paraguay," Agricultural Economics, International Association of Agricultural Economists, vol. 10(1), pages 27-37, January.
    3. M. Ishaq Javed & Sultan Ali Adil & Sarfaraz Hassan & Asghar Ali, 2009. "An Efficiency Analysis of Punjab’s Cotton-Wheat System," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 14(2), pages 97-124, Jul-Dec.
    4. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    5. Mubarik Ali & John C. Flinn, 1989. "Profit Efficiency Among Basmati Rice Producers in Pakistan Punjab," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(2), pages 303-310.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Wei Wei & Zulqarnain Mushtaq & Amir Ikram & Muhammad Faisal & Zhang Wan-Li & Muhammad Irshad Ahmad, 2020. "Estimating the Economic Viability of Cotton Growers in Punjab Province, Pakistan," SAGE Open, , vol. 10(2), pages 21582440209, May.
    2. Hameed, Abdul & Padda, Ihtsham ul Haq & Salam, Abdul, 2020. "Estimating the Socio-Economic Factors of Food Insecurity in Pakistan:A Regional Level Analysis," MPRA Paper 102290, University Library of Munich, Germany.

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