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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 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 potental output, household education significantly reduces production efficiencies. 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.

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Bibliographic Info

Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number WPS/2005-10.

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Date of creation: 01 Nov 2005
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Handle: RePEc:oxf:wpaper:wps/2005-10

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Keywords: Agriculture; Returns to Education; Stochastic Production Function; Bangladesh;

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References

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  1. Simon Appleton & Arsène Balihuta, 1996. "Education and agricultural productivity: evidence from Uganda," CSAE Working Paper Series 1996-05, Centre for the Study of African Economies, University of Oxford.
  2. M Niaz Asadullah, 2005. "Returns to education in Bangladesh," Development and Comp Systems 0511020, EconWPA.
  3. 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, Wiley Blackwell, vol. 53(3), pages 607-626.
  4. Wang, Jirong & Cramer, Gail L. & Wailes, Eric J., 1996. "Production efficiency of Chinese agriculture: evidence from rural household survey data," Agricultural Economics, Blackwell, Blackwell, vol. 15(1), pages 17-28, September.
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  12. Rosenzweig, Mark R, 1995. "Why Are There Returns to Schooling?," American Economic Review, American Economic Association, American Economic Association, vol. 85(2), pages 153-58, May.
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  14. Basu, Kaushik & Narayan, Ambar & Ravallion, Martin, 2001. "Is literacy shared within households? Theory and evidence for Bangladesh," Labour Economics, Elsevier, Elsevier, vol. 8(6), pages 649-665, December.
  15. John Knight & Sharada Weir & Tassew Woldehanna, 2003. "The role of education in facilitating risk-taking and innovation in agriculture," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 39(6), pages 1-22.
  16. Abdul Wadud & Ben White, 2000. "Farm household efficiency in Bangladesh: a comparison of stochastic frontier and DEA methods," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 32(13), pages 1665-1673.
  17. Wang, Jirong & Cramer, Gail L. & Wailes, Eric J., 1996. "Production efficiency of Chinese agriculture: evidence from rural household survey data," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 15(1), September.
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  20. 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, Springer, vol. 20(2), pages 325-32.
  21. Weir, Sharada & Knight, John, 2004. "Externality Effects of Education: Dynamics of the Adoption and Diffusion of an Innovation in Rural Ethiopia," Economic Development and Cultural Change, University of Chicago Press, vol. 53(1), pages 93-113, October.
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Citations

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Cited by:
  1. Malte Reimers & Stephan Klasen, 2011. "Revisiting the Role of Education for Agricultural Productivity," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 90, Courant Research Centre PEG.
  2. Klasen, Stephan & Reimers, Malte, 2013. "Looking at Pro-Poor Growth from an Agricultural Perspective," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C., Agricultural and Applied Economics Association 149745, Agricultural and Applied Economics Association.
  3. Rahman, Sanzidur, 2011. "Resource use efficiency under self-selectivity: the case of Bangladeshi rice producers," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, Australian Agricultural and Resource Economics Society, vol. 55(2), June.
  4. 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.
  5. 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.
  6. 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, Agricultural Economics Society 36867, Agricultural Economics Society.
  7. 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.
  8. Mussa, Richard, 2014. "Externalities of Education on Efficiency and Production Uncertainty of Maize in Rural Malawi," MPRA Paper 54628, University Library of Munich, Germany.
  9. Singh, K.M. & Meena, M.S. & Singh, R.K.P. & Kumar, Abhay & Kumar, Anjani, 2012. "Dynamics of income in Jharkhand: evidences from village studies," MPRA Paper 44822, University Library of Munich, Germany, revised 15 Nov 2012.
  10. Ogundari, Kolawole, 2009. "A Meta-Analysis Of Technical Efficiency In Nigerian Agriculture," 2009 Conference, August 16-22, 2009, Beijing, China, International Association of Agricultural Economists 50327, International Association of Agricultural Economists.
  11. ERREYGERS, Guido & FEREDE, Tadele, 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.

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