IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/81846.html
   My bibliography  Save this paper

Technical Efficiency Analysis of Wheat Farms in the Punjab, Pakistan: DEA Approach

Author

Listed:
  • Muhammad Aamir, Shahzad
  • Waqar, Akram
  • Muhammad, Khan

Abstract

The wheat productivity in the Punjab is less than the potential maximum due to technical farm and management issues. The farm level panel survey data was used for the said purpose comprising 17 districts of the province of the Punjab from the period 2005-06 to 2007-08. The technical efficiency of wheat farms was analyzed using Data Envelopment Analysis (DEA) approach. Subsequently, the same was calculated by analyzing the socioeconomic factors responsible for (in) efficiency using Tobit Regression Model. The DEA didn’t accommodate statistical noise such as random shocks which were beyond the control of farmers. However, the technical efficiency of wheat farms was estimated using the DEA approach. The mean technical efficiency estimated through variable return to scale (VRS) was 60.13 percent and constant return to scale (CRS) was 56.61 percent. The results of analyses were supported by the literature. The technical efficiency could be improved by educating the young farmers, building road infrastructure and providing access to essential inputs to farmers. The study undertaken supports the argument that technically wheat farmers are less efficient in the Punjab, Pakistan.

Suggested Citation

  • Muhammad Aamir, Shahzad & Waqar, Akram & Muhammad, Khan, 2016. "Technical Efficiency Analysis of Wheat Farms in the Punjab, Pakistan: DEA Approach," MPRA Paper 81846, University Library of Munich, Germany, revised 01 Oct 2017.
    • Handle: RePEc:pra:mprapa:81846
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/81846/1/MPRA_paper_81846.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Falak Sher & Eatzaz Ahmad, 2008. "Forecasting Wheat Production in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 13(1), pages 57-85, Jan-Jun.
    2. Wadud, Md. Abdul., 2003. "Technical, Allocative, and economic efficiency of farms in Bangladesh: a stochastic frontier and DEA approach," Journal of Developing Areas, Tennessee State University, College of Business, vol. 37(1), pages 109-126, September.
    3. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    4. Munir Ahmad & Azkar Ahmad, 1998. "An Analysis of the Sources of Wheat Output Growth in the Barani Area of the Punjab," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(3), pages 231-249.
    5. Alexandros M. Theodoridis & Md. Mazharul Anwar, 2011. "A comparison of DEA and SFA methods: a case study of farm households in Bangladesh," Journal of Developing Areas, Tennessee State University, College of Business, vol. 45(1), pages 95-110, July-Dece.
    6. Munir Ahmad & Ghulam Mustafa Chaudhry & Mohammad Iqbal, 2002. "Wheat Productivity, Efficiency, and Sustainability: A Stochastic Production Frontier Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 41(4), pages 643-663.
    7. Derek Byerlee, 1992. "Technical change, productivity, and sustainability in irrigated cropping systems of South Asia: Emerging issues in the post‐green revolution Era," Journal of International Development, John Wiley & Sons, Ltd., vol. 4(5), pages 477-496, September.
    8. Munir Ahmad & M. Ghaffar Chaudhry & Ghulam Mustafa Chaudhry, 2000. "Some Non-price Explanatory Variables in Fertiliser Demand: The Case of Irrigated Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 39(4), pages 477-486.
    9. Khem Sharma & Pingsun Leung & Halina Zaleski, 1997. "Productive Efficiency of the Swine Industry in Hawaii: Stochastic Frontier vs. Data Envelopment Analysis," Journal of Productivity Analysis, Springer, vol. 8(4), pages 447-459, November.
    10. M. Ishaq Javed & Sultan Ali Adil & Sarfaraz Hassan & Asghar Ali, 2009. "An Efficiency Analysis of Punjab’s Cotton-Wheat System," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 14(2), pages 97-124, Jul-Dec.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:mth:jas888:v:7:y:2019:i:1:p:115-127 is not listed on IDEAS
    2. Khush Bukhat ZAHID, & Munir AHMED, 2018. "Climate change and profit efficiency in Punjab, Pakistan: Evidence from household-level panel data," Journal of Economics Library, KSP Journals, vol. 5(1), pages 85-98, March.
    3. Munir Ahmad & Ghulam Mustafa Chaudhry & Mohammad Iqbal, 2002. "Wheat Productivity, Efficiency, and Sustainability: A Stochastic Production Frontier Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 41(4), pages 643-663.
    4. Fabio A. Madau & Roberto Furesi & Pietro Pulina, 2017. "Technical efficiency and total factor productivity changes in European dairy farm sectors," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-14, December.
    5. Koengkan, Matheus & Fuinhas, José Alberto & Kazemzadeh, Emad & Osmani, Fariba & Alavijeh, Nooshin Karimi & Auza, Anna & Teixeira, Mônica, 2022. "Measuring the economic efficiency performance in Latin American and Caribbean countries: An empirical evidence from stochastic production frontier and data envelopment analysis," International Economics, Elsevier, vol. 169(C), pages 43-54.
    6. Thomas Bournaris & George Vlontzos & Christina Moulogianni, 2019. "Efficiency of Vegetables Produced in Glasshouses: The Impact of Data Envelopment Analysis (DEA) in Land Management Decision Making," Land, MDPI, vol. 8(1), pages 1-11, January.
    7. Goodness C. Aye & Eric D. Mungatana, 2013. "Evaluating The Performance Of Small Scale Maize Producers In Nigeria: An Integrated Distance Function Approach," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 25(2), pages 79-92, July.
    8. Wencheng Li & Lei Wang & Qi Wan & Weijia You & Shaowen Zhang, 2022. "A Configurational Analysis of Family Farm Management Efficiency: Evidence from China," Sustainability, MDPI, vol. 14(10), pages 1-18, May.
    9. Tanko, Mohammed & Ismaila, Salifu, 2021. "How culture and religion influence the agriculture technology gap in Northern Ghana," World Development Perspectives, Elsevier, vol. 22(C).
    10. A. M. Theodoridis & A. Psychoudakis, 2008. "Efficiency Measurement in Greek Dairy Farms: Stochastic Frontier vs. Data Envelopment Analysis," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 1(2), pages 53-67, December.
    11. Gianluca Bortoletto & Donata Favaro, 2019. "Healthcare efficiency across European countries during the recent economic crisis," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2019(2), pages 9-38.
    12. Jiancheng Guan & Kaihua Chen, 2010. "Modeling macro-R&D production frontier performance: an application to Chinese province-level R&D," Scientometrics, Springer;Akadémiai Kiadó, vol. 82(1), pages 165-173, January.
    13. Zhong, Shen & Li, Junwei & Chen, Xi & Wen, Hongmei, 2022. "A multi-hierarchy meta-frontier approach for measuring green total factor productivity: An application of pig breeding in China," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    14. Andrey Baldanov & Lily Kiminami & Shinichi Furuzawa, 2019. "Study on the relationships between rural and agricultural development and human resource development in Russian Federation since 2000s," Letters in Spatial and Resource Sciences, Springer, vol. 12(2), pages 87-100, August.
    15. Madau, Fabio A., 2012. "Technical and scale efficiency in the Italian Citrus Farming: A comparison between Stochastic Frontier Analysis (SFA) and Data Envelopment Analysis(DEA) Models," MPRA Paper 41403, University Library of Munich, Germany.
    16. Nguyen To-The & Tuan Nguyen-Anh, 2021. "Impact of government intervention to maize efficiency at farmer’s level across time: a robust evidence in Northern Vietnam," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(2), pages 2038-2061, February.
    17. Fatima, Hina & Almas, Lal K & Yasmin, Bushra, 2017. "Production Efficiency Analysis of Capsicum (Bell Pepper) Cropping System under the Tunnels in Punjab, Pakistan," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252736, Southern Agricultural Economics Association.
    18. Ismat Ara Begum & Mohammad Jahangir Alam & Jeroen Buysse & Aymen Frija & Guido Van Huylenbroeck, 2012. "Contract farmer and poultry farm efficiency in Bangladesh: a data envelopment analysis," Applied Economics, Taylor & Francis Journals, vol. 44(28), pages 3737-3747, October.
    19. Mishra, Ashok K. & Bairagi, Subir & Velasco, Maria Lourdes & Mohanty, Samarendu, 2018. "Impact of access to capital and abiotic stress on production efficiency: Evidence from rice farming in Cambodia," Land Use Policy, Elsevier, vol. 79(C), pages 215-222.
    20. Anirban Nandy & Piyush Kumar Singh & Alok Kumar Singh, 2021. "Systematic Review and Meta- regression Analysis of Technical Efficiency of Agricultural Production Systems," Global Business Review, International Management Institute, vol. 22(2), pages 396-421, April.
    21. Oh Sang Kwon & Hyunok Lee, 2004. "Productivity improvement in Korean rice farming: parametric and non‐parametric analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 323-346, June.

    More about this item

    Keywords

    Data Envelopment Analysis; Variable Return to Scale; Constant Return to Scale.;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:81846. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.