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Farm productivity and efficiency in rural Bangladesh:The role of education revisited

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  • M Niaz Asadullah
  • Sanzidur Rahman

Abstract

This paper reassesses the debate over the role of education in farm production in Bangladesh using a large dataset on rice producing households 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 neighbourhoods. 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 - neighbour’s education does not matter in farm production. We discuss the implication of these findings for rural education programs in Bangladesh.

Suggested Citation

  • M Niaz Asadullah & Sanzidur Rahman, 2005. "Farm productivity and efficiency in rural Bangladesh:The role of education revisited," CSAE Working Paper Series 2005-10, Centre for the Study of African Economies, University of Oxford.
    • Handle: RePEc:csa:wpaper:2005-10
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    References listed on IDEAS

    as
    1. Hasnah & Fleming, Euan & Coelli, Tim, 2004. "Assessing the performance of a nucleus estate and smallholder scheme for oil palm production in West Sumatra: a stochastic frontier analysis," Agricultural Systems, Elsevier, vol. 79(1), pages 17-30, January.
    2. Rosenzweig, Mark R, 1995. "Why Are There Returns to Schooling?," American Economic Review, American Economic Association, vol. 85(2), pages 153-158, May.
    3. Ahmed, Raisuddin & Hossain, Mahabub, 1990. "Developmental impact of rural infrastructure in Bangladesh:," Research reports 83, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)

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    1. M. N. Asadullah & S. Rahman, 2009. "Farm productivity and efficiency in rural Bangladesh: the role of education revisited," Applied Economics, Taylor & Francis Journals, vol. 41(1), pages 17-33.

    More about this item

    Keywords

    Agriculture; returns to education; stochastic production frontier; Bangladesh;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries

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