IDEAS home Printed from https://ideas.repec.org/a/caa/jnlage/v55y2009i3id1002-agricecon.html
   My bibliography  Save this article

Cost efficiency estimates of maize production in Nepal: a case study of the Chitwan district

Author

Listed:
  • P. Paudel

    (The United Graduate School of Agricultural Sciences, Ehime University, Ehime, Japan)

  • A. Matsuoka

    (Faculty of Agriculture, Ehime University, Ehime, Japan)

Abstract

This study was carried out to analyze the cost efficiency of maize production in the Chitwan district, Nepal with a view to predict economic efficiencies using stochastic frontier cost function. The primary data were collected from 180 maize farmers representing 12 village development committees (VDCs) including one municipality of the district during May-June 2005 for the cropping year 2004-2005. Among various factors, use of manure accounted the highest share in the production cost followed by labour and tractor costs. The maximum-likelihood (ML) estimates of the parameters revealed that estimated coefficients of cost of tractor, animal power, labour, fertilizer, manure, seed and maize output gave positive coefficients and were significant at 5% level. Further, quantitative estimates obtained from the cost function shows the mean cost efficiency of 1.634 indicating that an average maize farms from the study incurred about 63% costs above the frontier cost-an indication of inefficiency. Also, the significant years of schooling of the household head and maize area in the inefficiency model indicated the positive effect of these factors on cost efficiency of the farms. From the analysis of scale effect among maize farms, it was revealed that the maize farms experienced an increasing return to scale, that is, the output increased more proportionately than the total production cost.

Suggested Citation

  • P. Paudel & A. Matsuoka, 2009. "Cost efficiency estimates of maize production in Nepal: a case study of the Chitwan district," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 55(3), pages 139-148.
    • Handle: RePEc:caa:jnlage:v:55:y:2009:i:3:id:1002-agricecon
    DOI: 10.17221/1002-AGRICECON
    as

    Download full text from publisher

    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/1002-AGRICECON.html
    Download Restriction: free of charge
    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/1002-AGRICECON.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.17221/1002-AGRICECON?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. Paudyal, Kamal R. & Ransom, Joel K. & Rajbhandari, Neeranjan P. & Adhikari, Krishna Prasad & Gerpacio, Roberta V. & Pingali, Prabhu L., 2001. "Maize in Nepal: Production Systems, Constraints, and Priorities for Research," Maize Production Systems Papers 7652, CIMMYT: International Maize and Wheat Improvement Center.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Josef Pulkrábek & Miroslav Kavka & Vladimír Rataj & Jaroslav Humpál & Ladislav Nozdrovický & Zdeněk Trávníček & Vladimír Pačuta, 2012. "The assessment of the economic risks level of sugar beet growing for the farm economy," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 58(1), pages 41-48.

    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. Tom Kompas & Tuong Nhu Che & R. Quentin Grafton, 2004. "Technical efficiency effects of input controls: evidence from Australia's banana prawn fishery," Applied Economics, Taylor & Francis Journals, vol. 36(15), pages 1631-1641.
    2. Lundgren, Tommy & Marklund, Per-Olov & Zhang, Shanshan, 2016. "Industrial energy demand and energy efficiency – Evidence from Sweden," Resource and Energy Economics, Elsevier, vol. 43(C), pages 130-152.
    3. Andriakopoulos, Konstantinos & Ladas, Augoustinos & Andriakopoulos, Panagiotis, 2020. "Bank efficiency and leasing in U.S.A. banking system," MPRA Paper 112645, University Library of Munich, Germany.
    4. Giovanni Calice & Levent Kutlu & Ming Zeng, 2021. "Understanding US firm efficiency and its asset pricing implications," Empirical Economics, Springer, vol. 60(2), pages 803-827, February.
    5. Khanal, Aditya & Koirala, Krishna & Regmi, Madhav, 2016. "Do Financial Constraints Affect Production Efficiency in Drought Prone Areas? A Case from Indonesian Rice Growers," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230087, Southern Agricultural Economics Association.
    6. Firna Varina & Sri Hartoyo & Nunung Kusnadi & Amzul Rifin, 2020. "The Determinants of Technical Efficiency of Oil Palm Smallholders in Indonesia," International Journal of Economics and Financial Issues, Econjournals, vol. 10(6), pages 89-93.
    7. Dhehibi, Boubaker & Lachaal, Lassaad & Elloumi, Mohamed & Messaoud, Emna B., 2007. "Measurement and Sources of Technical Inefficiency in the Tunisian Citrus Growing Sector," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9391, European Association of Agricultural Economists.
    8. Noel Uri, 2003. "The Effect of Incentive Regulation in Telecommunications in the United States," Quality & Quantity: International Journal of Methodology, Springer, vol. 37(2), pages 169-191, May.
    9. Tauer, Loren W. & Mishra, Ashok K., 2005. "U.S. Dairy Farm Cost Efficiency," Working Papers 127079, Cornell University, Department of Applied Economics and Management.
    10. Gangopadhyay, Partha & Jain, Siddharth & Bakry, Walid, 2022. "In search of a rational foundation for the massive IT boom in the Australian banking industry: Can the IT boom really drive relationship banking?," International Review of Financial Analysis, Elsevier, vol. 82(C).
    11. Williams, Jonathan, 2004. "Determining management behaviour in European banking," Journal of Banking & Finance, Elsevier, vol. 28(10), pages 2427-2460, October.
    12. Roy, Manish & Mazumder, Ritwik, 2016. "Technical Efficiency of Fish Catch in Traditional Fishing: A Study in Southern Assam," Journal of Regional Development and Planning, Rajarshi Majumder, vol. 5(1), pages 55-68.
    13. Veronika Fenyves & Tibor Tarnóczi & Zoltán Bács & Dóra Kerezsi & Péter Bajnai & Mihály Szoboszlai, 2022. "Financial efficiency analysis of Hungarian agriculture, fisheries and forestry sector," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(11), pages 413-426.
    14. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
    15. Tovar, Beatriz & Wall, Alan, 2015. "Can ports increase traffic while reducing inputs? Technical efficiency of Spanish Port Authorities using a directional distance function approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 71(C), pages 128-140.
    16. Alfonso Flores-Lagunes & William C. Horrace & Kurt E. Schnier, 2007. "Identifying technically efficient fishing vessels: a non-empty, minimal subset approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(4), pages 729-745.
    17. George E. Battese & D. S. Prasada Rao, 2002. "Technology Gap, Efficiency, and a Stochastic Metafrontier Function," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 1(2), pages 87-93, August.
    18. Sandrine Kablan & Ouidad Yousfi, 2015. "Performance of Islamic Banks across the World: An Empirical Analysis over the Period 2001-2008," International Journal of Empirical Finance, Research Academy of Social Sciences, vol. 4(1), pages 27-46.
    19. repec:use:tkiwps:3232 is not listed on IDEAS
    20. William Griffiths & Xiaohui Zhang & Xueyan Zhao, 2010. "A Stochastic Frontier Model for Discrete Ordinal Outcomes: A Health Production Function," Department of Economics - Working Papers Series 1092, The University of Melbourne.
    21. Antony Andrews & Omphile Temoso & Sean Kimpton, 2021. "Persistent and Transient Inefficiency of Australian States and Territories in Providing Public Hospital Services: An Application of Bayesian Stochastic Finite Mixture Frontier Analysis," Economic Papers, The Economic Society of Australia, vol. 40(2), pages 104-115, June.

    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:caa:jnlage:v:55:y:2009:i:3:id:1002-agricecon. 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: Ivo Andrle (email available below). General contact details of provider: https://www.cazv.cz/en/home/ .

    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.