Profit Efficiency Among Bangladeshi Rice Farmers
AbstractProduction inefficiency is usually analysed by its two components - technical efficiency and allocative efficiency. In this study we provide a direct measure of production efficiency of the Bangladeshi rice farmers using a stochastic profit frontier and inefficiency effects model. The data, which is for 1996, includes seven conventional inputs and several other background factors affecting production of modern or high yielding varieties (HYVs) of rice spread across 21 villages in three agro-ecological regions of Bangladesh. The results show that there are high levels of inefficiency in modern rice cultivation. The mean level of profit efficiency is 77% suggesting that an estimated 23% of the profit is lost due to a combination of both technical and allocative inefficiency in modern rice production. The efficiency differences are explained largely by infrastructure, soil fertility, experience, extension services, tenancy and share of non-agricultural income.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Economics, The University of Manchester in its series The School of Economics Discussion Paper Series with number 0203.
Date of creation: 2002
Date of revision:
Contact details of provider:
Postal: Manchester M13 9PL
Phone: (0)161 275 4868
Fax: (0)161 275 4812
Web page: http://www.socialsciences.manchester.ac.uk/disciplines/economics/
More information through EDIRC
Other versions of this item:
- Rahman, Sanzidur, 2003. "Profit Efficiency Among Bangladeshi Rice Farmers," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25898, International Association of Agricultural Economists.
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
- and - - - - - -
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-03-03 (All new papers)
- NEP-COM-2003-03-03 (Industrial Competition)
- NEP-EFF-2003-03-25 (Efficiency & Productivity)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kumbhakar, Subal C & Bhattacharyya, Arunava, 1992. "Price Distortions and Resource-Use Efficiency in Indian Agriculture: A Restricted Profit Function Approach," The Review of Economics and Statistics, MIT Press, vol. 74(2), pages 231-39, May.
- Ahmed, Raisuddin & Hossain, Mahabub, 1990. "Developmental impact of rural infrastructure in Bangladesh:," Research reports 83, International Food Policy Research Institute (IFPRI).
- 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.
- Kumbhakar, Subal C & Ghosh, Soumendra & McGuckin, J Thomas, 1991. "A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms," Journal of Business & Economic Statistics, American Statistical Association, vol. 9(3), pages 279-86, July.
- Kumbhakar, Subal C., 1987. "The specification of technical and allocative inefficiency in stochastic production and profit frontiers," Journal of Econometrics, Elsevier, vol. 34(3), pages 335-348, March.
- Kodde, David A. & Palm, Franz C., 1986.
"Wald criteria for jointly testing equality and inequality restrictions,"
Open Access publications from Maastricht University
urn:nbn:nl:ui:27-5750, Maastricht University.
- Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-48, September.
- Subal C. Kumbhakar, 2001. "Estimation of Profit Functions When Profit Is Not Maximum," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(1), pages 1-19.
- Umar Farooq & Trevor Young & Noel Russell & Muhammad Iqbal, 2001. "The supply response of basmati rice growers in Punjab, Pakistan: price and non-price determinants," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(2), pages 227-237.
- Tzouvelekas, Vangelis & Pantzios, Christos J. & Fotopoulos, Christos, 2001. "Technical efficiency of alternative farming systems: the case of Greek organic and conventional olive-growing farms," Food Policy, Elsevier, vol. 26(6), pages 549-569, December.
- 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.
- Ali, Farman & Parikh, Ashok & Shah, Mir Kalan, 1996. "Measurement of economic efficiency using the behavioral and stochastic cost frontier approach," Journal of Policy Modeling, Elsevier, vol. 18(3), pages 271-287, June.
- 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.
- 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.
- Bera, Anil K. & Kelley, Timothy G., 1990. "Adoption of high yielding rice varieties in Bangladesh : An econometric analysis," Journal of Development Economics, Elsevier, vol. 33(2), pages 263-285, October.
- Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics, Blackwell, vol. 7(3-4), pages 185-208, October.
- Richard Palmer-Jones & Ashok Parikh, 1998. "The Determination of Agricultural Wage Rates in Bangladesh," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(1), pages 111-133.
- Baffes, John & Gautam, Madhur, 2001. "Assessing the sustainability of rice production growth in Bangladesh," Food Policy, Elsevier, vol. 26(5), pages 515-542, October.
- Wollni, Meike & Brümmer, Bernhard, 2012. "Productive efficiency of specialty and conventional coffee farmers in Costa Rica: Accounting for technological heterogeneity and self-selection," Food Policy, Elsevier, vol. 37(1), pages 67-76.
- Binam, Joachim Nyemeck & Tonye, Jean & wandji, Njankoua & Nyambi, Gwendoline & Akoa, Mireille, 2004. "Factors affecting the technical efficiency among smallholder farmers in the slash and burn agriculture zone of Cameroon," Food Policy, Elsevier, vol. 29(5), pages 531-545, October.
- Rahman, Sanzidur, 2004. "Regional Productivity Differences And Prospect For Convergence In Bangladesh Agriculture, 1964-1992," 2004 Annual meeting, August 1-4, Denver, CO 20047, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Fitzpatrick, Trevor & McQuinn, Kieran, 2005.
"Measuring Bank Profit Efficiency,"
Research Technical Papers
3/RT/05, Central Bank of Ireland.
- Minten, Bart & Murshid, K.A.S. & Reardon, Thomas, 2012.
"Food quality changes and implications: Evidence from the rice value chain of Bangladesh,"
2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil
125280, International Association of Agricultural Economists.
- Minten, Bart & Murshid, K.A.S. & Reardon, Thomas, 2013. "Food Quality Changes and Implications: Evidence from the Rice Value Chain of Bangladesh," World Development, Elsevier, vol. 42(C), pages 100-113.
- Udayanganie, A.D.D. & Prasada, Dickwella Vidanage Pahan & Kodithuwakku, K.A.S.S. & Weerahewa, Jeevika & Little, D.C., 2006. "Efficiency Of The Agrochemical Input Usage In The Paddy Farming Systems In The Dry Zone Of Sri Lanka," Annual Meeting, May 25-28, 2006, Montreal, Quebec 34181, Canadian Agricultural Economics Society.
- Rahman, Sanzidur, 2009.
"Whether crop diversification is a desired strategy for agricultural growth in Bangladesh?,"
Elsevier, vol. 34(4), pages 340-349, August.
- 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.
- Chand, Narendra & Kerr, Geoffrey N. & Bigsby, Hugh R., . "Why some community forests are performing better than others: a case of forest user groups in Nepal," 2010 Conference, August 26-27, 2010, Nelson, New Zealand 96827, New Zealand Agricultural and Resource Economics Society.
- Meike Wollni & Bernhard Brümmer, 2009. "Productive efficiency of specialty and conventional coffee farmers in Costa Rica: Accounting for technological heterogeneity and self-selection," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 13, Courant Research Centre PEG.
- 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.
- M. N. Asadullah & S. Rahman, 2009. "Farm productivity and efficiency in rural Bangladesh: the role of education revisited," Applied Economics, Taylor and Francis Journals, vol. 41(1), pages 17-33.
- Asadullah, M. Niaz & Rahman, Sanzidur, 2006. "Farm Productivity and Efficiency in Rural Bangladesh: The Role of Education Revisited," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25482, International Association of Agricultural Economists.
- M. Niaz Asadullah & Sanzidur Rahman, 2005. "Farm productivity and efficiency in rural Bangladesh: The role of education revisited," Economics Series Working Papers WPS/2005-10, University of Oxford, Department of Economics.
- Susmita Dasgupta & Craig Meisner & David Wheeler, 2007.
"Is Environmentally Friendly Agriculture Less Profitable for Farmers? Evidence on Integrated Pest Management in Bangladesh,"
Review of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 29(1), pages 103-118.
- Dasgupta, Susmita & Meisner, Craig & Wheeler, David, 2004. "Is environmentally-friendly agriculture less profitable for farmers ? evidence on integrated pest management in Bangladesh," Policy Research Working Paper Series 3417, The World Bank.
- Amarender Reddy, A. & Bantilan, Ma Cynthia S., 2012. "Competitiveness and technical efficiency: Determinants in the groundnut oil sector of India," Food Policy, Elsevier, vol. 37(3), pages 255-263.
- Santos, Jozimo & Foster, William E. & Ortega, Jorge & Ramirez, E., 2006. "Estudio de la Eficiencia TÃ©cnica de Productores de Papas en Chile: El Rol del Programa de Transferencia TecnolÃ³gica de INDAP," Economia Agraria, Agrarian Economist Association (AEA), Chile, vol. 10.
- Minten, Bart & Murshid, K.A.S. & Reardon, Thomas, 2011. "The quiet revolution in agrifood value chains in Asia: The case of increasing quality in rice markets in Bangladesh," IFPRI discussion papers 1141, International Food Policy Research Institute (IFPRI).
- Nwachukwu, Ifeanyi N. & Onyenweaku, Chris E., 2009. "Allocative Efficiency among Fadama Fluted Pumkin Farmers in Imo State, Nigeria," MPRA Paper 27249, University Library of Munich, Germany.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marianne Sensier).
If references are entirely missing, you can add them using this form.