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Measuring the economic inefficiency of Nepalese rice farms using data envelopment analysis

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  • Basanta R. Dhungana
  • Peter L. Nuthall
  • Gilbert V. Nartea

Abstract

A data envelopment analysis of a sample of 76 Nepalese rice farmers reveals average relative economic, allocative, technical, pure technical and scale inefficiencies as 34, 13, 24, 18 and 7 per cent, respectively. The significant variations in the level of inefficiency across sample farms are attributed to the variations in the 'use intensities' of resources such as seed, labour, fertilisers and mechanical power. In addition, a second stage Tobit regression shows the variation is also related to farm-specific attributes such as the farmers' level of risk attitude, the farm manager's gender, age, education and family labour endowment. Based on the empirical findings, policy implications and development strategies for improving efficiency of Nepalese rice farms are briefly discussed. Copyright 2004 Australian Agricultural and Resource Economics Society Inc. and Blackwell Publishing Asia Pty Ltd..

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Article provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural & Resource Economics.

Volume (Year): 48 (2004)
Issue (Month): 2 (06)
Pages: 347-369

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Handle: RePEc:bla:ajarec:v:48:y:2004:i:2:p:347-369

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Cited by:
  1. Bonabana-Wabbi, J & Mugonola, B & Ajibo, S & Kirinya, J & Kato, E & Kalibwani, R & Kasenge, V & Nyamwaro, S & Tumwesigye, S & Chiuri, W & Mugabo, J & Fungo, B & Tenywa, M, 2013. "Agricultural profitability and technical efficiency: the case of pineapple and potato in SW Uganda," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 8(3), September.
  2. Chang, Hung-Hao & Wen, Fang-I, 2008. "Off-farm Work, Technical Efficiency, and Production Risk: Empirical Evidence from a National Farmer Survey in Taiwan," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6164, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Rios, Ana R. & Shively, Gerald E., 2005. "Farm size and nonparametric efficiency measurements for coffee farms in Vietnam," 2005 Annual meeting, July 24-27, Providence, RI 19159, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. Liu, John S. & Lu, Louis Y.Y. & Lu, Wen-Min & Lin, Bruce J.Y., 2013. "A survey of DEA applications," Omega, Elsevier, vol. 41(5), pages 893-902.
  5. Frantisek Brazdik, 2006. "Non-Parametric Analysis of Technical Efficiency: Factors Affecting Efficiency of West Java Rice Farms," CERGE-EI Working Papers wp286, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
  6. Ojimba, Thankgod Peter, 1. "Socio-Demographic Factors As Determinants Of Poverty In Crude Oil Polluted Crop Farms In Rivers State, Nigeria," International Journal of Food and Agricultural Economics (IJFAEC), Niğde University, Faculty of Economics and Administrative Sciences, vol. 1.
  7. Speelman, Stijn & D'Haese, Marijke & Buysse, Jeroen & D'Haese, Luc, 2008. "A measure for the efficiency of water use and its determinants, a case study of small-scale irrigation schemes in North-West Province, South Africa," Agricultural Systems, Elsevier, vol. 98(1), pages 31-39, July.
  8. Carravilla, M. A. & Oliveira, J. F., 2013. "Operations Research in Agriculture: Better Decisions for a Scarce and Uncertain World," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 5(2), June.
  9. Speelman, Stijn & D'Haese, Marijke F.C. & Buysse, Jeroen & D'Haese, Luc, 2007. "Technical efficiency of water use and its determinants, study at efficiencies in small-scale irrigation schemes in North-West Province, South Africa," 106th Seminar, October 25-27, 2007, Montpellier, France 7904, European Association of Agricultural Economists.
  10. Watkins, K. Bradley & Hristovska, Tatjana & Mazzanti, Ralph & Wilson, Charles E., Jr., . "Measuring Technical, Allocative, and Economic Efficiency of Rice Production in Arkansas using Data Envelopment Analysis," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142962, Southern Agricultural Economics Association.
  11. Watto, Muhammad Arif & Mugera, Amin William, 2013. "Measuring Groundwater Irrigation Efficiency in Pakistan: A DEA Approach Using the Sub-vector and Slack-based Models," Working Papers 144943, University of Western Australia, School of Agricultural and Resource Economics.
  12. Sana Sadaf & Khalid Riaz, 2012. "Does Access to Modern Marketing Channels Improve Dairy Enterprises’ Efficiency? A Case Study of Punjab, Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 17(1), pages 63-82, Jan-June.
  13. Thibbotuwawa, Manoj & Mugera, Amin W. & White, Benedict, 2012. "A Non-Parametric Analysis of Rice Production Efficiency in Sri Lanka," 2012 Conference (56th), February 7-10, 2012, Freemantle, Australia 124423, Australian Agricultural and Resource Economics Society.
  14. Thibbotuwawa, Manoj & Mugera, Amin & White, Ben, 2013. "Production Efficiency and Technology Gap in Irrigated and Rain-fed Rice Farming Systems in Sri Lanka: Non Parametric Approach," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152181, Australian Agricultural and Resource Economics Society.
  15. Watto, Muhammad, 2013. "Measuring Groundwater Irrigation Efficiency in Pakistan: A DEA Approach Using the Sub-vector and Slack-based Models," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152204, Australian Agricultural and Resource Economics Society.
  16. Vu Hoang Linh, 2012. "Efficiency of rice farming households in Vietnam," International Journal of Development Issues, Emerald Group Publishing, vol. 11(1), pages 60-73, April.
  17. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
  18. Speelman, Stijn & Buysse, Jeroen & Frija, Aymen & D'Haese, Marijke F.C. & D'Haese, Luc, 2008. "Estimating The Effect Of Water Charge Introduction At Small-Scale Irrigation Schemes In North West Province, South Africa," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6646, European Association of Agricultural Economists.
  19. Udayanganie, A.D.D. & Prasada, Dickwella Vidanage Pahan & Kodithuwakku, K.A.S.S. & Weerahewa, Jeevika & Little, D.C., 2006. "Efficiency Of The Agrochemical Input Usage In The Paddy Farming Systems In The Dry Zone Of Sri Lanka," Annual Meeting, May 25-28, 2006, Montreal, Quebec 34181, Canadian Agricultural Economics Society.
  20. Nuthall, Peter, 2009. "Modelling the origins of managerial ability in agricultural production," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(3), September.
  21. Rios, Ana R. & Shively, Gerald E. & Masters, William A., 2009. "Farm Productivity and Household Market Participation: Evidence from LSMS Data," 2009 Conference, August 16-22, 2009, Beijing, China 51031, International Association of Agricultural Economists.
  22. Hagos, Hosaena Ghebru & Holden, Stein, 2013. "Efficiency and productivity differential effects of land certification program in Ethiopia : Quasi-experimental evidence from Tigray:," IFPRI discussion papers 1295, International Food Policy Research Institute (IFPRI).
  23. Rios, Ana R. & Masters, William A. & Shively, Gerald E., 2008. "Linkages between Market Participation and Productivity: Results from a Multi-Country Farm Household Sample," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6145, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  24. Hristovska, Tatjana & Watkins, K. Bradley & Mazzanti, Ralph & Wilson, Charles E., Jr., 2013. "Effects of Field Characteristics and Management on Technical, Allocative, and Economic Efficiency of Rice Production in Arkansas," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 143042, Southern Agricultural Economics Association.

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