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Technical Efficiency and Its Determinants in Wheat Production: Evidence from Punjab, Pakistan

Author

Listed:
  • Maryam Nawaz
  • Shoaib Akhtar
  • Adnan Nazir
  • Muhammad Faisal

Abstract

The purpose of the current study was to assess the allocative, technical, and economic efficiency of wheat crop produced in Punjab. Primary data were collected through a well-structured questionnaire. The economic efficiencies were estimated by the DEA technique using the farm level data gathered from 240 wheat growers of the Rajanpur district of Punjab, Pakistan. According to the results of the study the estimated efficiencies results show that the mean technical efficiency of the wheat crop is about 70%, the mean allocative efficiency is 74%, and the mean cost efficiency is 52%. The findings revealed that Pakistani wheat farms could minimize production costs by up to 30% to ensure the same level of production, using resources in optimal proportions and increasing technical efficiency. The findings also reveal that the current level of wheat production can be amplified by up to 30% by mollifying the technical efficiency of wheat crop.

Suggested Citation

  • Maryam Nawaz & Shoaib Akhtar & Adnan Nazir & Muhammad Faisal, 2020. "Technical Efficiency and Its Determinants in Wheat Production: Evidence from Punjab, Pakistan," Journal of Economic Impact, Science Impact Publishers, vol. 2(1), pages 37-42.
    • Handle: RePEc:adx:journl:v:2:y:2020:i:1:p:37-42
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    References listed on IDEAS

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    1. Barkley, Andrew P. & Peterson, Hikaru Hanawa & Shroyer, James, 2010. "Wheat Variety Selection to Maximize Returns and Minimize Risk: An Application of Portfolio Theory," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 42(01), pages 1-17, February.
    2. Timothy J. Coelli & D.S. Prasada Rao & Christopher J. O’Donnell & George E. Battese, 2005. "An Introduction to Efficiency and Productivity Analysis," Springer Books, Springer, edition 0, number 978-0-387-25895-9, December.
    3. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 2008. "The Measurement of Productive Efficiency and Productivity Growth," OUP Catalogue, Oxford University Press, number 9780195183528.
    4. Gorton, Matthew & Davidova, Sophia, 2004. "Farm productivity and efficiency in the CEE applicant countries: a synthesis of results," Agricultural Economics, Blackwell, vol. 30(1), pages 1-16, January.
    5. 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.
    6. Afriat, Sidney N, 1972. "Efficiency Estimation of Production Function," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 13(3), pages 568-598, October.
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    Keywords

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    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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