IDEAS home Printed from
   My bibliography  Save this article

Technical Efficiency in Cotton Production: The Role of Premium Payments in Turkey


  • Ebru Solakoglu


  • Sabri Er


  • M. Solakoglu



Providing about two million employments from textile to agriculture, cotton is an important and a strategic product for Turkey. Thus, support programs become critical and crucial for the cotton production. For cotton farmers, premium payments affecting the cost measures become vital next to the market prices. This study measures the technical efficiency of cotton production, incorporating support premium payments as one of the background variables to capture the effect of premiums on efficiency scores for cotton production using stochastic frontier model. The premium payments found to be the most important determinant of inefficiencies, and the results of our analysis suggest that premiums paid to farmers increase efficiency for cotton production. In addition, regional production was important explaining inefficiencies. Although three regions in Turkey did not behave parallel and showed different characteristics in production, efficiency gap between these regions is closed recently. Copyright CEEUN 2013

Suggested Citation

  • Ebru Solakoglu & Sabri Er & M. Solakoglu, 2013. "Technical Efficiency in Cotton Production: The Role of Premium Payments in Turkey," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 20(3), pages 285-294, November.
  • Handle: RePEc:spr:trstrv:v:20:y:2013:i:3:p:285-294
    DOI: 10.1007/s11300-013-0286-2

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

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

    References listed on IDEAS

    1. 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.
    2. Kumbhakar,Subal C. & Lovell,C. A. Knox, 2003. "Stochastic Frontier Analysis," Cambridge Books, Cambridge University Press, number 9780521666633, December.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Cotton technical efficiency; Premium payments; Turkey; Q14; Q16;

    JEL classification:

    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services


    Access and download statistics


    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:spr:trstrv:v:20:y:2013:i:3:p:285-294. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Andrew Huffard). General contact details of provider: .

    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 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.