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Technical Efficiency and Optimal Farm Size in the Tajik's Cotton Sector

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  • Tsimpo Nkengne, Clarence

Abstract

The main objective of this paper is to estimate the technical efficiency of cotton farms in Tajikistan using a stochastic frontier production function, and to derive the optimal farm size. Currently, Tajikistan is reforming its cotton sector. This reform consists essentially of switching from a communist system with large state owned farms to a private system. This brings the question of what the optimal size of the new private farms should be. The study involved collection and analysis of data on 205 cotton farms from the Sughd province where cotton production is concentrated. The analysis suggests that an inverse relationship between productivity and farm size does not hold. The relationship between farm size and technical efficiency is more complex than what is normally believed.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 35192.

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Date of creation: 10 Mar 2010
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Handle: RePEc:pra:mprapa:35192

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Keywords: Agriculture; Farm size; Stochastic frontier model; Tajikistan;

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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. Igbekele Ajibefun & Adebiyi Daramola & Abiodun Falusi, 2006. "Technical efficiency of small scale farmers: An application of the stochastic frontier production function to rural and urban farmers in Ondo State, Nigeria," International Economic Journal, Taylor & Francis Journals, vol. 20(1), pages 87-107.
  3. 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.
  4. Kompas, Tom & Che, Tuong Nhu, 2006. "Technology choice and efficiency on Australian dairy farms," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(1), March.
  5. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-44, June.
  6. Helfand, Steven M. & Levine, Edward S., 2004. "Farm size and the determinants of productive efficiency in the Brazilian Center-West," Agricultural Economics, Blackwell, vol. 31(2-3), pages 241-249, December.
  7. Tom Kompas & Tuong Nhu Che, 2006. "Technology choice and efficiency on Australian dairy farms ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(1), pages 65-83, 03.
  8. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 7(3-4), October.
  9. Rios, Ana R. & Shively, Gerald E., 2005. "Farm size and nonparametric efficiency measurements for coffee farms in Vietnam," 2005 Annual meeting, July 24-27, Providence, RI 19159, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  10. Shenggen Fan & Connie Chan-Kang, 2005. "Is small beautiful? Farm size, productivity, and poverty in Asian agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 135-146, 01.
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