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Efficiency and Technical Change in the Philippine Rice Sector: A Malmquist Total Factor Productivity Analysis

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  • Chieko Umetsu
  • Thamana Lekprichakul
  • Ujjayant Chakravorty

Abstract

Regional differences in total factor productivity, efficiency, and technological change in the Philippine rice sector are examined for the post-Green Revolution era. Malmquist productivity indices were constructed for 1971–90 and were decomposed into efficiency and technological change. The average annual Malmquist productivity growth was only slightly positive. Productivity growth was negative during the early 1970s, and was followed by a period of positive growth. Growth was negative again in the late 1980s. The period of positive growth coincided with the introduction of new rice varieties while the declines are likely to have been caused by intensification of rice production in lowland farming systems. Certain regions such as Central Luzon, Western Visayas, and Southern and Northern Mindanao had higher rates of technological change than others. This may be due to higher investments in infrastructure and education, increased adoption of tractors, and a better agroclimatic environment. Copyright 2003, Oxford University Press.

Suggested Citation

  • Chieko Umetsu & Thamana Lekprichakul & Ujjayant Chakravorty, 2003. "Efficiency and Technical Change in the Philippine Rice Sector: A Malmquist Total Factor Productivity Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 943-963.
  • Handle: RePEc:oup:ajagec:v:85:y:2003:i:4:p:943-963
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    File URL: http://hdl.handle.net/10.1111/1467-8276.00499
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    Cited by:

    1. Renato Villano & Euan Fleming, 2006. "Technical Inefficiency and Production Risk in Rice Farming: Evidence from Central Luzon Philippines," Asian Economic Journal, East Asian Economic Association, vol. 20(1), pages 29-46, March.
    2. Kurup, Suresh & Jha, Girish & Singh, Alka, 2015. "Technical and efficiency changes in oilseed sector in India: Implications for policy," 2015 Conference, August 9-14, 2015, Milan, Italy 212017, International Association of Agricultural Economists.
    3. Dakpo, K Hervé & Desjeux, Yann & Jeanneaux, Philippe & Latruffe, Laure, 2016. "Productivity, efficiency and technological change in French agriculture during 2002-2014: A Färe-Primont index decomposition," 149th Seminar, October 27-28, 2016, Rennes, France 244793, European Association of Agricultural Economists.
    4. Amin W. Mugera & Allen M. Featherstone, 2008. "Backyard Hog Production Efficiency: Evidence from the Philippines," Asian Economic Journal, East Asian Economic Association, vol. 22(3), pages 267-287, September.
    5. Koirala, Krishna H. & Mishra, Ashok K. & Mohanty, Samarendu, 2014. "Determinants of Rice Productivity and Technical Efficiency in the Philippines," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162501, Southern Agricultural Economics Association.
    6. Katsunobu Kondo & Yasutaka Yamamoto & Jun Sasaki, 2017. "Total Factor Productivity of the Japanese Rice Industry," Asian Economic Journal, East Asian Economic Association, vol. 31(4), pages 331-353, December.
    7. Mamiit, Rusyan Jill & Yanagida, John & Villanueva, Donald, 2020. "Farm locations and dwelling clusters: Do they make production and technical efficiency spatially contagious?," Food Policy, Elsevier, vol. 92(C).
    8. Villano, Renato A. & Fleming, Euan M., 2004. "Analysis of Technical Efficiency in a Rainfed Lowland Rice Environment in Central Luzon Philippines Using a Stochastic Frontier Production Function with a Heteroskedastic Error Structure," Working Papers 12906, University of New England, School of Economics.
    9. Xiao Lu & Yi Qu & Piling Sun & Wei Yu & Wenlong Peng, 2020. "Green Transition of Cultivated Land Use in the Yellow River Basin: A Perspective of Green Utilization Efficiency Evaluation," Land, MDPI, Open Access Journal, vol. 9(12), pages 1-22, November.
    10. Kelvin Balcombe & Sophia Davidova & Laure Latruffe, 2008. "The use of bootstrapped Malmquist indices to reassess productivity change findings: an application to a sample of Polish farms," Applied Economics, Taylor & Francis Journals, vol. 40(16), pages 2055-2061.
    11. Kondo, Katsunobu & Yamamoto, Yasutaka & Sasaki, Jun, 2008. "Measuring Total Factor Productivity Change for Agricultural Cooperatives in Japan: A Nonparametric Malmquist Indices Approach," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 36(2), pages 1-13.
    12. Koirala, Krishna H. & Mishra, Ashok K. & Mohanty, Samarendu, 2014. "Impact of Land Ownership on Productivity and Efficiency of Rice Farmers: A Simulated Maximum Likelihood Approach," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170608, Agricultural and Applied Economics Association.
    13. Olson, Kent D. & Vu, Linh, 2009. "Productivity Growth, Technical Efficiency and Technical Change on Minnesota Farms," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49204, Agricultural and Applied Economics Association.
    14. Pokharel, Krishna & Featherstone, Allen, 2016. "Examining the Productivity Growth of Agricultural Cooperatives," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236273, Agricultural and Applied Economics Association.
    15. Ali Chebil & Aymen Frija & Rached Alyani, 2015. "Measurement of Total Factor Productivity and its Determinants: Case of Wheat Sector in Tunisia," Working Papers 943, Economic Research Forum, revised Sep 2015.
    16. Frantisek Brazdik, 2006. "Non-Parametric Analysis of Technical Efficiency: Factors Affecting Efficiency of West Java Rice Farms," CERGE-EI Working Papers wp286, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    17. Souza, Geraldo da Silva e & Gomes, Eliane Gonçalves & Alves, Eliseu Roberto de Andrade & Gasques, José Garcia, 2020. "Technological progress in the Brazilian agriculture," Socio-Economic Planning Sciences, Elsevier, vol. 72(C).
    18. Suresh, A., 2013. "Technical Change and Efficiency of Rice Production in India: A Malmquist Total Factor Productivity Approach," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 26(Conferenc).
    19. Li, Yi & Sun, Linyan & Feng, Taiwen & Zhu, Chunyan, 2013. "How to reduce energy intensity in China: A regional comparison perspective," Energy Policy, Elsevier, vol. 61(C), pages 513-522.
    20. Valerien O. Pede & Francisco J. Areal & Alphonse Singbo & Justin McKinley & Kei Kajisa, 2018. "Spatial dependency and technical efficiency: an application of a Bayesian stochastic frontier model to irrigated and rainfed rice farmers in Bohol, Philippines," Agricultural Economics, International Association of Agricultural Economists, vol. 49(3), pages 301-312, May.
    21. Tsunehiro Otsuki, 2013. "Nonparametric measurement of the overall shift in the technology frontier: an application to multiple-output agricultural production data in the Brazilian Amazon," Empirical Economics, Springer, vol. 44(3), pages 1455-1475, June.
    22. Briones, Roehlano M., 2012. "Addressing Land Degradation: Benefits, Costs, and Policy Directions," Philippine Journal of Development PJD 2010 Vol. 37 No. 1c, Philippine Institute for Development Studies.
    23. Dakpo, K Hervé & Desjeux, Yann & Jeanneaux, Philippe & Latruffe , Laure, 2017. "Productivity, technical efficiency and technological change in French agriculture during 2002-2014: A Färe-Primont index decomposition," Working Papers 263010, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).

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