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Labour Productivity and Rice Production in Bangladesh: A Stochastic Frontier Approach

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  • Selim, Sheikh

    ()
    (Cardiff Business School)

Abstract

In this paper we examine the significance of labour productivity and use of inputs in explaining technical efficiency of rice production in Bangladesh. We find that higher labour productivity can stimulate high efficiency gains, but increased use of inputs (except land) induces negative marginal effect on technical efficiency. While more use of land, improved seeds and fertilizers contributes to the rate of labour-productivity induced marginal efficiency gain, any additional labour depresses this rate. Given the agricultural policy reform history in Bangladesh, our findings imply that rather than providing input subsidy or output price support, future reforms should put more emphasis on providing incentives to enhance labour productivity and encourage formalization of the agricultural labour market.

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Bibliographic Info

Paper provided by Cardiff University, Cardiff Business School, Economics Section in its series Cardiff Economics Working Papers with number E2007/10.

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Length: 22 pages
Date of creation: Apr 2007
Date of revision: Feb 2010
Handle: RePEc:cdf:wpaper:2007/10

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Keywords: Stochastic frontier; non-neutral frontier; technical efficiency;

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Cited by:
  1. 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, European Association of Agricultural Economists 114224, European Association of Agricultural Economists.

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