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Interlinked Factor Markets and Allocative Efficiency: Evidence from Rural West Bengal, India


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  • Arindam Laha

    (Department of Commerce, the University of Burdwan, India)

  • Pravat Kumar Kuri

    (Department of Economics, the University of Burdwan, India)

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    The issue of the implication of interlinkage of factor markets on the allocative efficiency level of the farm households deserves a special attention in the light of the controversy among two distinct schools of thought: the Neoclassical and the Marxist. An attempt has been made in the paper to measure allocative and cost efficiencies of the interlinked holding vis-à-vis a comparable group of non-interlinked holding in the framework of Data Envelopment Analysis. Empirical evidence establishes the Neo-classical proposition that interlinked factor markets can be considered as one of the “efficiency improving institutional change” in rural agrarian economy.

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    Bibliographic Info

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

    Volume (Year): 50 (2011)
    Issue (Month): 1 ()
    Pages: 29-45

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    Handle: RePEc:pid:journl:v:50:y:2011:i:1:p:29-45

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    Related research

    Keywords: Interlinkage; Allocative Efficiency; Rural Credit; Data Envelopment Analysis;

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