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An Efficiency Analysis of Punjab’s Cotton-Wheat System

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Author Info

  • M. Ishaq Javed

    ()
    (Agriculture Officer, Sangla Hill, District Nankana Sahib.)

  • Sultan Ali Adil

    ()
    (Department of Agricultural Economics, University of Agriculture, Faisalabad.)

  • Sarfaraz Hassan

    ()
    (Department of Environmental and Resource Economics, University of Agriculture, Faisalabad.)

  • Asghar Ali

    ()
    (Department of Agricultural Economics, University of Agriculture, Faisalabad.)

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    Abstract

    This study examines the technical, allocative, and economic efficiencies of the cotton-wheat farming system in Punjab, Pakistan. It also investigates the determinants of these efficiencies using a non-parametric data envelopment analysis (DEA) technique. Technical, allocative, and economic inefficiency scores are separately regressed on socioeconomic and farm-specific variables to identify the sources of inefficiency using a Tobit regression model. The mean technical, allocative, and economic efficiencies calculated for the system were 0.87, 0.44, and 0.37, respectively. Our results indicate that years of schooling and the number of contacts with extension agents have a negative impact on the inefficiency of cotton-wheat farming in Punjab.

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    Bibliographic Info

    Article provided by Department of Economics, The Lahore School of Economics in its journal Lahore Journal of Economics.

    Volume (Year): 14 (2009)
    Issue (Month): 2 (Jul-Dec)
    Pages: 97-124

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    Handle: RePEc:lje:journl:v:14:y:2009:i:2:p:97-124

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    Web page: http://www.lahoreschoolofeconomics.edu.pk/EconomicsJournal/LJEIntro.aspx
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    Related research

    Keywords: Cotton; wheat; economic efficiency; data envelopment analysis.;

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    References

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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. Lissitsa, Alexej & Coelli, Tim J. & Rao, D.S. Prasada, 2005. "Agricultural Economics Education in Ukrainian Agricultural Universities: An Efficiency Analysis Using Data Envelopment Analysis," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24482, European Association of Agricultural Economists.
    3. Dhungana, Basanta R. & Nuthall, Peter L. & Nartea, Gilbert V., 2000. "Explaining Economic Inefficiency Of Nepalese Rice Farms: An Empirical Investigation," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123630, Australian Agricultural and Resource Economics Society.
    4. Featherstone, Allen M. & Langemeier, Michael R. & Ismet, Mohammad, 1997. "A Nonparametric Analysis Of Efficiency For A Sample Of Kansas Beef Cow Farms," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 29(01), July.
    5. 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.
    6. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
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