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Resource use efficiency under self‐selectivity: the case of Bangladeshi rice producers

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  • Sanzidur Rahman

Abstract

The paper jointly evaluates the determinants of switching to modern rice and its productivity while allowing for production inefficiency at the level of individual producers. Model diagnostics reveal that serious selection bias exists, justifying the use of a sample selection framework in stochastic frontier models. Results revealed that modern variety selection decisions are influenced positively by the availability of irrigation and gross return from rice and negatively by a rise in the relative wage of labour. Adoption of modern rice is higher in underdeveloped regions. Seasonality and geography/ location does matter in adoption decisions. Stochastic production frontier results reveal that land, labour and irrigation are the significant determinants of modern rice productivity. Decreasing returns to scale prevail in modern rice production. The mean level of technical efficiency (MTE) is estimated at 0.82. Results also demonstrate that the conventional stochastic frontier model significantly overestimates inefficiency by three points (MTE = 0.79). Policy implications include measures to increase access to irrigation, tenurial reform and keeping rice prices high to boost farm returns and offset the impact of a rise in the labour wage which will synergistically increase the adoption of modern rice as well as farm productivity.
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Suggested Citation

  • Sanzidur Rahman, 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, vol. 55(2), pages 273-290, April.
    • Handle: RePEc:bla:ajarec:v:55:y:2011:i:2:p:273-290
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    Cited by:

    1. Abdul-Rahaman, Awal & Abdulai, Awudu, 2018. "Do farmer groups impact on farm yield and efficiency of smallholder farmers? Evidence from rice farmers in northern Ghana," Food Policy, Elsevier, vol. 81(C), pages 95-105.
    2. Rahman, Sanzidur & Daniel Chima, Chidiebere, . "Determinants of modern technology adoption in multiple food crops in Nigeria: a multivariate probit approach," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 4(3).
    3. Uttam Khanal & Clevo Wilson & Boon Lee & Viet-Ngu Hoang, 2018. "Do climate change adaptation practices improve technical efficiency of smallholder farmers? Evidence from Nepal," Climatic Change, Springer, vol. 147(3), pages 507-521, April.
    4. Bravo-Ureta, Boris E. & Higgins, Daniel & Arslan, Aslihan, 2020. "Irrigation infrastructure and farm productivity in the Philippines: A stochastic Meta-Frontier analysis," World Development, Elsevier, vol. 135(C).
    5. Chisom Lotanna Ubabukoh & Katsushi S. Imai, 2023. "Are farmers ‘efficient but poor’? The impact of crop choices on technical efficiency and poverty in Nigeria," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(1), pages 191-213, February.
    6. Lachaud, Michee & Bravo-Ureta, Boris & Ludena, Carlos, 2015. "Agricultural Productivity Growth in Latin America and the Caribbean (LAC): An analysis of Climatic Effects, Convergence, and Catch-up," 2015 Conference, August 9-14, 2015, Milan, Italy 211721, International Association of Agricultural Economists.
    7. ODOZI, JOHN CHIWUZULUM & Adeniyi, Oluwaosin & Yusuf, Sulaiman A., 2018. "Production Efficiency in Small Agriculture: Do Migrant Remittances Matter?Evidence from Rural Nigeria," AgriXiv jfvzn, Center for Open Science.
    8. Sanzidur Rahman & Md. Abdul Matin & Md. Kamrul Hasan, 2018. "Joint Determination of Improved Variety Adoption, Productivity and Efficiency of Pulse Production in Bangladesh: A Sample-Selection Stochastic Frontier Approach," Agriculture, MDPI, vol. 8(7), pages 1-16, July.
    9. Chisom Ubabukoh & Katsushi S. Imai, 2021. "Are Farmers “Efficient but Poor”? The Impact of Crop Choices on Agricultural Productivity and Poverty in Nigeria," Discussion Paper Series DP2021-17, Research Institute for Economics & Business Administration, Kobe University, revised Jun 2022.
    10. Satya Laksana & Arie Damayanti, 2013. "Determinants of the Adoption of System of Rice Intesification in Tasikmalaya District, West Java Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 201306, Department of Economics, Padjadjaran University, revised Mar 2013.
    11. Khanal, Uttam & Wilson, Clevo & Shankar, Sriram & Hoang, Viet-Ngu & Lee, Boon, 2018. "Farm performance analysis: Technical efficiencies and technology gaps of Nepalese farmers in different agro-ecological regions," Land Use Policy, Elsevier, vol. 76(C), pages 645-653.
    12. Lachaud, Michee Arnold & Bravo-Ureta, Boris E. & Ludena, Carlos E., 2015. "Agricultural productivity growth in Latin America and the Caribbean and other world regions: An analysis of climatic effects, convergence and catch-up," Working Papers 40, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    13. Rahman, M Sadique & Kazal, Mohammad Mizanul Haque & Rayhan, Shah Johir, . "Improved Management Practices Adoption And Technical Efficiency Of Shrimp Farmers In Bangladesh: A Sample Selection Stochastic Production Frontier Approach," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 41(01).
    14. repec:osf:agrixi:jfvzn_v1 is not listed on IDEAS
    15. Khanal, Uttam & Wilson, Clevo & Rahman, Sanzidur & Lee, Boon & Hoang, Vincent, 2020. "Smallholder farmers’ adaptation to climate change and its potential contribution to UN’s sustainable development goals of zero hunger and no poverty," MPRA Paper 106917, University Library of Munich, Germany, revised 07 Sep 2020.

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