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Technical Efficiency and its Determinants in Potato Production, Evidence from Punjab, Pakistan

Author

Listed:
  • Abedullah

    (University of Agriculture Faisalabad, Pakistan.)

  • Khuda Bakhsh

    (University of Agriculture Faisalabad, Pakistan.)

  • Bashir Ahmad

    (University of Agriculture Faisalabad, Pakistan.)

Abstract

Potato cultivation accounts for 5.71 percent in total cropped area of the Punjab province and it supplements the diet of the growing population at lower prices as compared to grains, meat and chicken. Data from 100 farmers, 50 each from the districts of Okara and Kasur during the year 2002-2003 (the autumn crop) has been collected. The study estimates the technical efficiency inpotato production by employing the Cobb-Douglas stochastic production frontier approach. The null hypothesis of no technical inefficiency in the data is rejected. Our results indicate that potato farmers are 84 percent technically efficient, implying significant potential in potato production thatcan be developed. By shifting the average farmer to the production frontier, the average yield would increase from 8.33 tons per acre to 9.92 tons per acre using the available resources. The additional quantity of potatoesgathered through efficiency improvements would generate Rs. 990.81 ($16.51) million of revenue each year. Consultation with extension workers significantly contributes to the improvement of technical efficiency and implies that the extension department should be one of the major targeted variables from the policy point of view in order to improve technical efficiency in potato production.

Suggested Citation

  • Abedullah & Khuda Bakhsh & Bashir Ahmad, 2006. "Technical Efficiency and its Determinants in Potato Production, Evidence from Punjab, Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 11(2), pages 1-22, Jul-Dec.
    • Handle: RePEc:lje:journl:v:11:y:2006:i:2:p:1-22
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    Cited by:

    1. Fatima, Hina & Almas, Lal K & Yasmin, Bushra, 2017. "Production Efficiency Analysis of Capsicum (Bell Pepper) Cropping System under the Tunnels in Punjab, Pakistan," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252736, Southern Agricultural Economics Association.
    2. Agerie Nega Wassihun & Tigabu Dagnew Koye & Abebe Dagnew Koye, 2019. "Analysis of technical efficiency of potato (Solanum tuberosum L.) production in Chilga District, Amhara National Regional State, Ethiopia," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-18, December.
    3. Abedullah & Tariq A Sheikh & Haseeb Ali & Shahzad Kouser**, 2012. "Enviornmental Efficiency in Vegetable production in Pakistan Implication for Sustainable agriculture," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 22, pages 77-99.
    4. Hussnain Shah & Muhammad Azeem Khan & Tariq Azeem & Abdul Majid & Abid Mehmood, 2012. "The Impact of Gypsum Application on Groundnut Yield in Rainfed Pothwar: An Economic Perspective," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 17(1), pages 83-100, Jan-June.
    5. Ruvaraishe Tapera & Dube Phamela & Nyasha Chipunza, 2021. "An Assessment of Economic Efficiency of Smallholder Irish Potato Producers in Nyanga District of Zimbabwe," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(2), pages 434-444, February.
    6. Anwar, Dr. Mumtaz & Shabbir, Dr. Ghulam & Shahid, M. Hassam & Samreen, Wajiha, 2015. "Determinants of Potato Prices and its Forecasting: A Case Study of Punjab, Pakistan," MPRA Paper 66678, University Library of Munich, Germany.

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