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Determinants of Technical Efficiency of Rice Farms in North-Central and North-Western Regions in Bangladesh

Author

Listed:
  • Stefan Bäckman
  • K.M. Zahidul Islam
  • John Sumelius

    (University of Helsinki, Finland)

Abstract

This paper estimates a quadratic stochastic frontier production function to examine the determinants of technical efficiency in rice farming in Bangladesh using the computer program FRONTIER 4.1. Primary data has been collected using multi-stage random sampling technique from twelve villages in north-central and north-western regions in Bangladesh. Rice cultivation displayed much variability in technical efficiency ranging from 0.16 to 0.94 with mean technical efficiency of 0.83 which suggested substantial gains in output with available resources and existing technologies. The analysis of the determinants of technical efficiency revealed that the age and education of the household heads, availability of off-farm incomes, land fragmentation, access to microfinance, extension visits, and regional variation were the major factors that caused efficiency differentials among the farm households studied. Hence, the study proposes strategies such as providing better extension services and farmer training programs, ensuring access to agricultural microfinance, reducing land fragmentation and raising educational level of the farmers to enhance technical efficiency.

Suggested Citation

  • Stefan Bäckman & K.M. Zahidul Islam & John Sumelius, 2011. "Determinants of Technical Efficiency of Rice Farms in North-Central and North-Western Regions in Bangladesh," Journal of Developing Areas, Tennessee State University, College of Business, vol. 45(1), pages 73-94, July-Dece.
    • Handle: RePEc:jda:journl:vol.45:year:2011:issue1:pp:73-94
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    File URL: http://muse.jhu.edu/journals/journal_of_developing_areas/v045/45.backman.html
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    Citations

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    Cited by:

    1. Hailu, Getu & Weersink, Alfons & Minten, Bart J., 2015. "Rural Organizations, Agricultural Technologies and Production Efficiency of Teff in Ethiopia," 2015 Conference, August 9-14, 2015, Milan, Italy 211702, International Association of Agricultural Economists.
    2. 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.
    3. Watkins, K. Bradley & Hristovska, Tatjana & Mazzanti, Ralph & Wilson, Charles E., Jr., "undated". "Measuring Technical, Allocative, and Economic Efficiency of Rice Production in Arkansas using Data Envelopment Analysis," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142962, Southern Agricultural Economics Association.
    4. Salman Khan & Syed Attaullah Shah & Shahid Ali & Amjad Ali & Lal K. Almas & Sania Shaheen, 2022. "Technical Efficiency and Economic Analysis of Rice Crop in Khyber Pakhtunkhwa: A Stochastic Frontier Approach," Agriculture, MDPI, vol. 12(4), pages 1-15, April.
    5. Bairagi, Subir K. & Mishra, Ashok K., 2020. "Do Farmers’ Organizations Impact Production Efficiency? Evidence from Bangladeshi Rice Farmers," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304179, Agricultural and Applied Economics Association.
    6. Nguyen-Anh, Tuan & Hoang-Duc, Chinh & Tiet, Tuyen & Nguyen-Van, Phu & To-The, Nguyen, 2022. "Composite effects of human, natural and social capitals on sustainable food-crop farming in Sub-Saharan Africa," Food Policy, Elsevier, vol. 113(C).
    7. Mugonola, Basil & Vranken, Liesbet & Maertens, Miet & Deckers, Jozef & Taylor, Daniel B & Bonabana-Wabbi, Jackline & Mathijs, Erik, 2013. "Soil and water conservation technologies and technical efficiency in banana production in upper Rwizi micro-catchment, Uganda," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 8(1), pages 1-16, July.
    8. Thibbotuwawa, Manoj & Mugera, Amin & White, Ben, 2013. "Production Efficiency and Technology Gap in Irrigated and Rain-fed Rice Farming Systems in Sri Lanka: Non Parametric Approach," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152181, Australian Agricultural and Resource Economics Society.
    9. Thi Lam Bui & Huu Cuong Tran & Hossein Azadi & Philippe Lebailly, 2018. "Improving the Technical Efficiency of Sengcu Rice Producers through Better Financial Management and Sustainable Farming Practices in Mountainous Areas of Vietnam," Sustainability, MDPI, vol. 10(7), pages 1-19, July.
    10. Wencheng Li & Lei Wang & Qi Wan & Weijia You & Shaowen Zhang, 2022. "A Configurational Analysis of Family Farm Management Efficiency: Evidence from China," Sustainability, MDPI, vol. 14(10), pages 1-18, May.
    11. Jules Ngango & Seung Gyu Kim, 2019. "Assessment of Technical Efficiency and Its Potential Determinants among Small-Scale Coffee Farmers in Rwanda," Agriculture, MDPI, vol. 9(7), pages 1-12, July.
    12. Thibbotuwawa, Manoj & Mugera, Amin W. & White, Benedict, 2012. "A Non-Parametric Analysis of Rice Production Efficiency in Sri Lanka," 2012 Conference (56th), February 7-10, 2012, Fremantle, Australia 124423, Australian Agricultural and Resource Economics Society.
    13. Siddique, Abu & Vlassopoulos, Michael & Zenou, Yves, 2023. "Market competition and discrimination," European Economic Review, Elsevier, vol. 152(C).
    14. Shah Johir Rayhan & Md. Sadique Rahman & Kaiyu Lyu, 2023. "The Role of Rural Credit in Agricultural Technology Adoption: The Case of Boro Rice Farming in Bangladesh," Agriculture, MDPI, vol. 13(12), pages 1-17, November.
    15. Abubakar Rasheed & Gershom Endelani Mwalupaso & Qasir Abbas & Xu Tian & Rafay Waseem, 2020. "Women Participation: A Productivity Strategy in Rice Production," Sustainability, MDPI, vol. 12(7), pages 1-15, April.
    16. Mishra, Ashok K. & Bairagi, Subir & Velasco, Maria Lourdes & Mohanty, Samarendu, 2018. "Impact of access to capital and abiotic stress on production efficiency: Evidence from rice farming in Cambodia," Land Use Policy, Elsevier, vol. 79(C), pages 215-222.
    17. Osei-Mensah, Isaac & Asante, Bright Owusu & Owusu, Victor & Donkor, Emmanuel & Boansi, David, 2021. "Productivity Differences in Small Scale Palm Oil Processors Using Different Processing Technologies in Ghana," 2021 Conference, August 17-31, 2021, Virtual 315850, International Association of Agricultural Economists.
    18. Donkor, Emmanuel & Owusu, Victor, 2014. "Effects of land tenure systems on resource-use productivity and efficiency in Ghana’s rice industry," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 9(4), pages 1-14, December.
    19. Getu Hailu & Alfons Weersink & Bart Minten, 2017. "Determinants of the Productivity of Teff in Ethiopia," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(4), pages 866-892, August.

    More about this item

    Keywords

    Quadratic stochastic frontier production function; Technical efficiency; Bangladesh; multi-stage random sampling; agricultural microfinance;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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