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Farm Productivity and Efficiency in Rural Bangladesh: The Role of Education Revisited

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  • Asadullah, M. Niaz
  • Rahman, Sanzidur

Abstract

This paper reassesses the debate over the role of education in farm pro duction in Bangladesh using a large dataset on rice producing hous eholds from 141 villages. Average and stochastic production frontier functions are estimated to ascertain the effect of education on productivity and efficiency. A full set of proxies for farm education stock variables are incorporated to investigate the 'internal' as well as 'external' returns to education. The external effect is investigated in the context of rural neighborhoods. Our analysis reveals that in addition to raising rice productivity and boosting potential output, household education significantly reduces production inefficiencies. However, we are unable to find any evidence of externality benefit of schooling. We discuss the implication of these findings for rural education programs in Bangladesh.

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Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia with number 25482.

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Date of creation: 2006
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Handle: RePEc:ags:iaae06:25482

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Keywords: Agriculture; returns to education; stochastic production frontier; Bangladesh; Labor and Human Capital; Productivity Analysis; I21; Q12; N5;

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  1. Tim Coelli & Sanzidur Rahman & Colin Thirtle, 2003. "A stochastic frontier approach to total factor productivity measurement in Bangladesh crop agriculture, 1961-92," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(3), pages 321-333.
  2. Rahman, Sanzidur, 2003. "Profit efficiency among Bangladeshi rice farmers," Food Policy, Elsevier, vol. 28(5-6), pages 487-503.
  3. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
  4. Seyoum, E. T. & Battese, G. E. & Fleming, E. M., 1998. "Technical efficiency and productivity of maize producers in eastern Ethiopia: a study of farmers within and outside the Sasakawa-Global 2000 project," Agricultural Economics, Blackwell, vol. 19(3), pages 341-348, December.
  5. Llewelyn, Richard V. & Williams, Jeffery R., 1996. "Nonparametric analysis of technical, pure technical, and scale efficiencies for food crop production in East Java, Indonesia," Agricultural Economics, Blackwell, vol. 15(2), pages 113-126, November.
  6. Simon Appleton & Arsene Balihuta, 1996. "Education and agricultural productivity: Evidence from Uganda," Journal of International Development, John Wiley & Sons, Ltd., vol. 8(3), pages 415-444.
  7. Ahmed, Raisuddin & Hossain, Mahabub, 1990. "Developmental impact of rural infrastructure in Bangladesh:," Research reports 83, International Food Policy Research Institute (IFPRI).
  8. Najma R. Sharif & Atul A. Dar, 1996. "Stochastic Frontiers and Technical Efficiency Distributions: An Analysis Based on Rice Farming Data for Bangladesh," Canadian Journal of Economics, Canadian Economics Association, vol. 29(s1), pages 582-86, April.
  9. Abdul Wadud & Ben White, 2000. "Farm household efficiency in Bangladesh: a comparison of stochastic frontier and DEA methods," Applied Economics, Taylor and Francis Journals, vol. 32(13), pages 1665-1673.
  10. 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.
  11. Simon Appleton and Arsene Balihuta, 1996. "Education and agricultural productivity: evidence from Uganda," Economics Series Working Papers WPS/1996-05, University of Oxford, Department of Economics.
  12. Wang, Jirong & Cramer, Gail L. & Wailes, Eric J., 1996. "Production efficiency of Chinese agriculture: evidence from rural household survey data," Agricultural Economics, Blackwell, vol. 15(1), pages 17-28, September.
  13. John Knight & Sharada Weir & Tassew Woldehanna, 2003. "The role of education in facilitating risk-taking and innovation in agriculture," The Journal of Development Studies, Taylor and Francis Journals, vol. 39(6), pages 1-22.
  14. Rosenzweig, Mark R, 1995. "Why Are There Returns to Schooling?," American Economic Review, American Economic Association, vol. 85(2), pages 153-58, May.
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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. Rahman, Sanzidur, 2008. "Whether crop diversification is a desired strategy for agricultural growth in Bangladesh," 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK 36867, Agricultural Economics Society.
  3. Gille, Véronique, 2011. "Education spillovers in farm productivity: empirical evidence in rural India," Proceedings of the German Development Economics Conference, Berlin 2011 31, Verein für Socialpolitik, Research Committee Development Economics.
  4. Erreygers G. & Ferede T., 2009. "The end of subsistence farming: Growth dynamics and investments in human and environmental capital in rural Ethiopia," Working Papers 2009008, University of Antwerp, Faculty of Applied Economics.
  5. Ogundari, Kolawole, 2009. "A Meta-Analysis Of Technical Efficiency In Nigerian Agriculture," 2009 Conference, August 16-22, 2009, Beijing, China 50327, International Association of Agricultural Economists.
  6. Naomi Hossain, 2009. "School Exclusion as Social Exclusion: The Practices And Effects of Conditional Cash Transfer Programme for the Poor in Bangladesh," Working Papers id:2177, eSocialSciences.
  7. Anik, Asif Reza & Breustedt, Gunnar & Bauer, Siegfried, 2011. "The Impact of Corruption on Farmers' Efficiency in Rice Production: A Natural Experiment from Bangladesh," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114224, European Association of Agricultural Economists.

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