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

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  • Ruhul Salim
  • Amzad Hossain

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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Bibliographic Info

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

Volume (Year): 38 (2006)
Issue (Month): 21 ()
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. 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.
  2. 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, Wiley Blackwell, vol. 53(3), pages 607-626.
  3. Ahmed, Raisuddin & Hossain, Mahabub, 1990. "Developmental impact of rural infrastructure in Bangladesh:," Research reports 83, International Food Policy Research Institute (IFPRI).
  4. 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.
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  6. Ahmed, Raisuddin, 1995. "Liberalization of agricultural input markets in Bangladesh: process, impact, and lessons," Agricultural Economics, Blackwell, vol. 12(2), pages 115-128, August.
  7. Anthony Rezitis & Kostas Tsiboukas & Stauros Tsoukalas, 2002. "Measuring technical efficiency in the Greek agricultural sector," Applied Economics, Taylor & Francis Journals, vol. 34(11), pages 1345-1357.
  8. 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.
  9. Abdul Wadud & Ben White, 2000. "Farm household efficiency in Bangladesh: a comparison of stochastic frontier and DEA methods," Applied Economics, Taylor & Francis Journals, vol. 32(13), pages 1665-1673.
  10. Laure Latruffe & Kelvin Balcombe & Sophia Davidova & Katarzyna Zawalinska, 2004. "Determinants of technical efficiency of crop and livestock farms in Poland," Applied Economics, Taylor & Francis Journals, vol. 36(12), pages 1255-1263.
  11. Tybout, James R., 1992. "Making noisy data sing : Estimating production technologies in developing countries," Journal of Econometrics, Elsevier, vol. 53(1-3), pages 25-44.
  12. 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.
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Cited by:
  1. Lakner, S. & Muñoz, T. Brenes & Aedo, Edinson Rivera & Brümmer, B., 2013. "Technical Efficiency in the Chilean Agribusiness Sector – a Stochastic Meta-Frontier Approach," Proceedings Issues, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152356, International Agricultural Trade Research Consortium.
  2. Rivera Aedo, Edinson & Lakner, Sebastian & Brümmer, Bernhard, 2011. "Technical efficiency in the Chilean agribusiness sector," IAMO Forum 2011: Will the "BRICs Decade" Continue? – Prospects for Trade and Growth 10, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO).

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