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Inter‐Regional Farm Efficiency In Pakistan'S Punjab: A Frontier Production Function Study

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  • M. Ali
  • M. A. Chaudhry

Abstract

Agricultural production efficiency in four irrigated cropping regions of the Punjab province of Pakistan was compared on the basis of a probabilistic frontier production function estimated from whole‐farm survey data for the year 1984‐85. It is found that the gross income of farmers can be increased by 13% at the current levels of resource use if the production gap between ‘best practice’ and ‘average’ farmers is suitably narrowed in all cropping regions. This will increase profits by up to 40%. No significant difference in technical efficiency was found across the regions. Economic efficiency was similar across all cropping regions except in the cotton region, which had significantly lower economic efficiency due to higher allocative inefficiency, which in turn was attributable to the more dynamic production technologies being adopted in that region.

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  • M. Ali & M. A. Chaudhry, 1990. "Inter‐Regional Farm Efficiency In Pakistan'S Punjab: A Frontier Production Function Study," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(1), pages 62-74, January.
    • Handle: RePEc:bla:jageco:v:41:y:1990:i:1:p:62-74
    DOI: 10.1111/j.1477-9552.1990.tb00619.x
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    4. Alene, Arega D. & Hassan, Rashid M., 2003. "Measuring The Impact Of Ethiopia'S New Extension Program On The Productive Efficiency Of Farmers," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25919, International Association of Agricultural Economists.
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    8. Bozoglu, Mehmet & Ceyhan, Vedat, 2007. "Measuring the technical efficiency and exploring the inefficiency determinants of vegetable farms in Samsun province, Turkey," Agricultural Systems, Elsevier, vol. 94(3), pages 649-656, June.
    9. Karunarathna, Muditha & Wilson, Clevo, 2017. "Agricultural biodiversity and farm level technical efficiency: An empirical investigation," Journal of Forest Economics, Elsevier, vol. 29(PA), pages 38-46.
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    11. Alene, Arega D. & Zeller, Manfred, 2005. "Technology adoption and farmer efficiency in multiple crops production in eastern Ethiopia: A comparison of parametric and non-parametric distance functions," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 6(1).
    12. Nwaru,Jude C. & Ndukwu,Patrick C., 2012. "Estimation of Farm Level Technical Efficiency and Its Determinants Among Male And Female Sweet Potato Farmers In Imo State, Nigeria," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 20(1), September.
    13. Radha R. Ashrit, 2023. "Estimation of technical efficiency of Indian farms for major crops during 2013–2014 and 2017–2018: a stochastic Frontier production approach," SN Business & Economics, Springer, vol. 3(2), pages 1-32, February.
    14. Munir Ahmad & Sarfraz Khan Qureshi, 1999. "Recent Evidence on Farm Size and Land Productivity: Implications for Public Policy," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(4), pages 1135-1153.
    15. Abedullah & Khuda Bakhsh & Bashir Ahmad, 2006. "Technical Efficiency and its Determinants in Potato Production, Evidence from Punjab, Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 11(2), pages 1-22, Jul-Dec.
    16. B.C. Okoye & A. Abass & B. Bachwenkizi & G. Asumugha & B. Alenkhe & R. Ranaivoson & R. Randrianarivelo & N. Rabemanantsoa & I. Ralimanana, 2016. "Differentials in technical efficiency among smallholder cassava farmers in Central Madagascar: A Cobb Douglas stochastic frontier production approach," Cogent Economics & Finance, Taylor & Francis Journals, vol. 4(1), pages 1143345-114, December.
    17. Tadesse, Bedassa & Krishnamoorthy, S., 1997. "Technical efficiency in paddy farms of Tamil Nadu: An analysis based on farm size and ecological zone," Agricultural Economics, Blackwell, vol. 16(3), pages 185-192, August.
    18. Thiam, Abdourahmane & Bravo-Ureta, Boris E. & Rivas, Teodoro E., 2001. "Technical efficiency in developing country agriculture: a meta-analysis," Agricultural Economics, Blackwell, vol. 25(2-3), pages 235-243, September.
    19. Madeeha G. Qureshi & Sarfraz Khan Qureshi, 2004. "Impact of Changing Profile of Rural Land Market in Pakistan on Resource Allocation and Equity," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(4), pages 471-492.

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