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Education and Technical Efficie

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  • RAUF A AzHAR

    (International Islamic University)

Abstract

It is now well recognized that education expedites the process of growth in an economy. In agriculture, leaving aside the external effects, it affects productivity in two quite distinct ways known as the allocative effect and the worker effect (Welch" 1970). The former centres on better allocation decisions including adoption and diffusion of new technology whereas the latter relates to a more efficient use of given inputs, i.e.. the technical efficiency aspect of production. Whilethe allocative effect is inherently predicated on disequilibrium (created, for example, by a change in technology) (Nelson and Phelps 1966), there is some evidence to suggest that even the worker effect of education is more likely to arise in disequilibrium resulting from technical change (Moock 1981). This is because technical change renders the cultural practices learnt over generations obsolete or inadequate and calls for an adjustment. A more educated farmer is supposed to make the required adjustment more quickly. In this paper I have attempted to test this hypothesis for Pakistan during the green revolution period when the introduction of new crop varieties disturbed the prevailing equilibrium. For this purpose I have used production function analysis and have conducted the analysis for not only the new but also the traditional crops. The results lend support to the hypothesis by showing that the worker effect is more pronounced in the case of new crop varieties as compared to the traditional ones. The paper is divided into three sections. In Section II, I have presented the hypothesis and discussed the methodology used for the analysis. Section III concludes the paper with a discussion of the results.

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File URL: http://www.pide.org.pk/pdf/PDR/1988/Volume4/687-697.pdf
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Bibliographic Info

Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

Volume (Year): 27 (1988)
Issue (Month): 4 ()
Pages: 687-697

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Handle: RePEc:pid:journl:v:27:y:1988:i:4:p:687-697

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  1. Faiz Mohammad, 1986. "Wealth Effects of the Green Revolution in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 25(4), pages 489-513.
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Cited by:
  1. Malte Reimers & Stephan Klasen, 2011. "Revisiting the Role of Education for Agricultural Productivity," Ibero America Institute for Econ. Research (IAI) Discussion Papers 214, Ibero-America Institute for Economic Research, revised 27 Jul 2012.
  2. Graff, Michael, 1998. "Educational imbalance, socio-economic inequality, political freedom and economic development," Dresden Discussion Paper Series in Economics 03/98, Dresden University of Technology, Faculty of Business and Economics, Department of Economics.
  3. Omer Gokcekus & Kwabena Anyane-Ntow & T.R. Richmond, 2001. "Human Capital and Efficiency: The Role of Education and Experience in Micro-Enterprises of Ghana¡¯s Wood-Products Industry," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 26(1), pages 103-113, June.
  4. Najam US Saqib, 1998. "A Critical Assessment of Free Public Schooling in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(4), pages 955-976.

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