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Competitiveness, Profitability, Input Demand and Output Supply of Maize Production in Bangladesh

Author

Listed:
  • Sanzidur Rahman

    () (School of Geography, Earth and Environmental Sciences, University of Plymouth, Plymouth PL4 8AA, UK)

  • Mohammad Mizanul Haque Kazal

    () (Department of Development and Poverty Studies, Sher-e-Bangla Agricultural University, Dhaka 1207, Bangladesh
    These authors contributed equally to this work.)

  • Ismat Ara Begum

    () (Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh
    These authors contributed equally to this work.)

  • Mohammad Jahangir Alam

    () (Department of Agribusiness and Marketing, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh
    These authors contributed equally to this work.)

Abstract

The study assesses international competitiveness, profitability, output supply and input demand of maize production using a farm survey data of 165 farmers from two major maize growing areas ( i.e. , Dinajpur and Lalmonirhat districts) of northwestern Bangladesh. Results revealed that maize production is globally competitive and, therefore, can successfully substitute its import. Maize production is also profitable at the farm level (Benefit Cost Ratio = 1.21) with no adverse influence of farm size on yield and profitability. Maize farmers are also responsive to changes in market prices of inputs and outputs. A 1% increase in maize price will increase output supply by 0.4%. The most dominant driver of maize supply and other input demands is land. A 1% increase in available land will increase maize supply by a substantial 3.9%. In addition, landless laborers will benefit through an increase in hired labor demand when land area increases. Policy implications include investments in R&D, tenurial reform to consolidate land holding and smooth functioning of the hired labor market in order to increase maize production and profitability in Bangladesh.

Suggested Citation

  • Sanzidur Rahman & Mohammad Mizanul Haque Kazal & Ismat Ara Begum & Mohammad Jahangir Alam, 2016. "Competitiveness, Profitability, Input Demand and Output Supply of Maize Production in Bangladesh," Agriculture, MDPI, Open Access Journal, vol. 6(2), pages 1-14, May.
  • Handle: RePEc:gam:jagris:v:6:y:2016:i:2:p:21-:d:70653
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    References listed on IDEAS

    as
    1. Bruno, Michael, 1972. "Domestic Resource Costs and Effective Protection: Clarification and Synthesis," Journal of Political Economy, University of Chicago Press, vol. 80(1), pages 16-33, Jan.-Feb..
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    Citations

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    Cited by:

    1. Sanzidur Rahman & Mohammad Mizanul Haque Kazal & Ismat Ara Begum & Mohammad Jahangir Alam, 2017. "Exploring the Future Potential of Jute in Bangladesh," Agriculture, MDPI, Open Access Journal, vol. 7(12), pages 1-16, November.
    2. Salmensuu, Olli, 2017. "Macroeconomic Trends and Factors of Production Affecting Potato Producer Price in Developing Countries," MPRA Paper 79163, University Library of Munich, Germany.

    More about this item

    Keywords

    competitiveness; Policy Analysis Matrix (PAM) analysis; profitability; output supply; input demand; translog profit function; maize; Bangladesh;

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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