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Market deregulation, trade liberalization and productive efficiency in Bangladesh agriculture: an empirical analysis

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Author Info
Ruhul Salim
Amzad Hossain

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Abstract

The impact of trade liberalization and of market deregulation in general, on the performance of agriculture remains contentious and empirical issue in the literature. Following the random coefficient frontier modelling framework, this paper attempts to contribute to this debate by computing the farm-specific productive efficiency indices in Bangladesh agriculture before and after reform. It also examines the impact of some farm-specific and policy variables on productive efficiency. The empirical results show that there are wide variations in productive efficiency across farms and regions and the average efficiency of all regions increased modestly by 8 percentage points from the pre-reform to post-reform period. The efficiency differentials are largely explained by farm size, infrastructure, households' off-farm income and the reduction of government anti-agricultural bias in relation to trade and domestic policies. The implication of these results suggests the need for further policy reform to augment productive efficiency.

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Article provided by Taylor and Francis Journals in its journal Applied Economics.

Volume (Year): 38 (2006)
Issue (Month): 21 (December)
Pages: 2567-2580
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Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2567-2580

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  1. Boyce, James K., 1987. "Trends and projections for Bangladeshi food production : Rejoinder to M. Alauddin and C. Tisdell," Food Policy, Elsevier, vol. 12(4), pages 332-336, November. [Downloadable!] (restricted)
  2. Dembele, Niama Nango & Staatz, John M., 1999. "The Impact Of Market Reform On Agricultural Transformation In Mali," Staff Papers 11717, Michigan State University, Department of Agricultural, Food, and Resource Economics. [Downloadable!]
  3. Ahmed, Raisuddin & Hossain, Mahabub, 1990. "Developmental impact of rural infrastructure in Bangladesh:," Research reports 83, International Food Policy Research Institute (IFPRI). [Downloadable!]
  4. Jayne, T. S. & Govereh, J. & Mwanaumo, A. & Nyoro, J. K. & Chapoto, A., 2002. "False Promise or False Premise? The Experience of Food and Input Market Reform in Eastern and Southern Africa," World Development, Elsevier, vol. 30(11), pages 1967-1985, November. [Downloadable!] (restricted)
  5. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July. [Downloadable!] (restricted)
  6. Tim Coelli & Sanzidur Rahman & Colin Thirtle, 2002. "Technical, Allocative, Cost and Scale Efficiencies in Bangladesh Rice Cultivation: A Non-parametric Approach," Journal of Agricultural Economics, Blackwell Publishing, vol. 53(3), pages 607-626. [Downloadable!] (restricted)
  7. Alauddin, Mohammad & Tisdell, Clem, 1987. "Trends and projections for Bangladeshi food production : An alternative viewpoint," Food Policy, Elsevier, vol. 12(4), pages 318-331, November. [Downloadable!] (restricted)
  8. Laure Latruffe & Kelvin Balcombe & Sophia Davidova & Katarzyna Zawalinska, 2004. "Determinants of technical efficiency of crop and livestock farms in Poland," Applied Economics, Taylor and Francis Journals, vol. 36(12), pages 1255-1263, July. [Downloadable!] (restricted)
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