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The Effects of Market Reform on Cotton Production Efficiency. The Case of Tajikistan

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  • Yusuf Tashrifov
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    Abstract

    This study examines the effects of market reform on the agriculture sector of Tajikistan. It investigates the level and determinants of technical efficiency for a sample of cotton growing regions in Tajikistan. Using unbalanced panel data of 11 years covering the transition period 1992-2002, 34 cotton-producing regions are analysed with a translog stochastic production frontier, including a model for regional-specific technical inefficiencies. The output elasticities, marginal productivities of inputs, returns to scale, and indices of convergence are also examined. They reveal that the technical inefficiency effects are found to be highly significant in indicating the ranges and variation in regional outputs. The results show that market reforms had a significant positive impact on technical efficiency of cotton production, which, in turn, has a substantial contribution to the process of economic development of Tajikistan.

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    File URL: https://crawford.anu.edu.au/degrees/idec/working_papers/IDEC05-8.pdf
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    Bibliographic Info

    Paper provided by International and Development Economics in its series International and Development Economics Working Papers with number idec05-8.

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    Length: 40 pages
    Date of creation: 2005
    Date of revision:
    Handle: RePEc:idc:wpaper:idec05-8

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    1. 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.
    2. Gerry Boyle; & Thomas McCarthy, 1995. "A Simple Measure of Beta-Convergence," Economics, Finance and Accounting Department Working Paper Series n560495, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
    3. Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, vol. 38(3), pages 387-399, July.
    4. Coelli, Tim J. & Battese, George E., 1996. "Identification Of Factors Which Influence The Technical Inefficiency Of Indian Farmers," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(02), August.
    5. 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.
    6. Battese, George E. & Corra, Greg S., 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 21(03), December.
    7. Carter Colin A. & Zhang Bin, 1994. "Agricultural Efficiency Gains in Centrally Planned Economies," Journal of Comparative Economics, Elsevier, vol. 18(3), pages 314-328, June.
    8. Forsund, Finn R. & Lovell, C. A. Knox & Schmidt, Peter, 1980. "A survey of frontier production functions and of their relationship to efficiency measurement," Journal of Econometrics, Elsevier, vol. 13(1), pages 5-25, May.
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