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An Investigation Of Technical Inefficiencies Of Production Of Wheat Farmers In Four Districts Of Pakistan

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  • George E. Battese
  • Sohail J. Malik
  • Manzoor A. Gill

Abstract

A new, single stage model for estimating technical inefficiencies of production in a stochastic frontier production function is applied in the analysis of panel data on wheat farmers in selected districts of Pakistan. The technical inefficiency effects are highly significant, implying that the traditional production function model is inadequate for the analysis of wheat production of the four districts involved. In the district of Faisalabad, for example, technical inefficiencies of production tend to be smaller for older farmers and those with greater formal schooling. In addition, the levels of wheat production for farmers in Faisalabad tend to approach their potential frontier production levels over time, although there is no evidence of technical change. The technical efficiencies of the wheat farmers show considerable variation over time within each district, such that the mean technical efficiencies range from 57 per cent to 79 per cent in the four districts.

Suggested Citation

  • George E. Battese & Sohail J. Malik & Manzoor A. Gill, 1996. "An Investigation Of Technical Inefficiencies Of Production Of Wheat Farmers In Four Districts Of Pakistan," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1‐4), pages 37-49, January.
  • Handle: RePEc:bla:jageco:v:47:y:1996:i:1-4:p:37-49
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    File URL: https://doi.org/10.1111/j.1477-9552.1996.tb00670.x
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    References listed on IDEAS

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    1. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
    2. Coelli, T. J., 1992. "A computer program for frontier production function estimation : Frontier version 2.0," Economics Letters, Elsevier, vol. 39(1), pages 29-32, May.
    3. Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, vol. 38(3), pages 387-399, July.
    4. K. Kalirajan, 1981. "An Econometric Analysis of Yield Variability in Paddy Production," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 29(3), pages 283-294, November.
    5. Coelli, Tim J. & Battese, George E., 1996. "Identification Of Factors Which Influence The Technical Inefficiency Of Indian Farmers," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(2), pages 1-26, August.
    6. repec:pje:journl:article1982winii is not listed on IDEAS
    7. 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, vol. 20(2), pages 325-332.
    8. A. Parikh & K. Shah, 1994. "Measurement Of Technical Efficiency In The North‐West Frontier Province Of Pakistan," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(1), pages 132-138, January.
    9. 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 435-444, June.
    10. 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.
    11. repec:pje:journl:article1983winii is not listed on IDEAS
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