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Market deregulation, trade liberalization and productive efficiency in Bangladesh agriculture: an empirical analysis

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  • Ruhul Salim
  • Amzad Hossain

Abstract

The impact of trade liberalization and of market deregulation in general, on the performance of agriculture remains contentious and empirical issue in the literature. Following the random coefficient frontier modelling framework, this paper attempts to contribute to this debate by computing the farm-specific productive efficiency indices in Bangladesh agriculture before and after reform. It also examines the impact of some farm-specific and policy variables on productive efficiency. The empirical results show that there are wide variations in productive efficiency across farms and regions and the average efficiency of all regions increased modestly by 8 percentage points from the pre-reform to post-reform period. The efficiency differentials are largely explained by farm size, infrastructure, households' off-farm income and the reduction of government anti-agricultural bias in relation to trade and domestic policies. The implication of these results suggests the need for further policy reform to augment productive efficiency.

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  • Ruhul Salim & Amzad Hossain, 2006. "Market deregulation, trade liberalization and productive efficiency in Bangladesh agriculture: an empirical analysis," Applied Economics, Taylor & Francis Journals, vol. 38(21), pages 2567-2580.
    • Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2567-2580
    DOI: 10.1080/00036840500427585
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    2. Islam, Zeenatul & Sabiha, Noor E & Salim, Ruhul, 2022. "Integrated environment-smart agricultural practices: A strategy towards climate-resilient agriculture," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 59-72.
    3. Gautam, Madhur & Ahmed, Mansur, 2019. "Too small to be beautiful? The farm size and productivity relationship in Bangladesh," Food Policy, Elsevier, vol. 84(C), pages 165-175.
    4. Lakner, Sebastian & Brenes Muñoz, Thelma & Aedo, Edinson Rivera & Brümmer, Bernhard, 2013. "Technical Efficiency in the Chilean Agribusiness Sector – a Stochastic Meta-Frontier Approach," 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152356, International Agricultural Trade Research Consortium.
    5. Rivera Aedo, Edinson & Lakner, Sebastian & Brümmer, Bernhard, 2011. "Technical efficiency in the Chilean agribusiness sector," IAMO Forum 2011: Will the "BRICs Decade" Continue? – Prospects for Trade and Growth 10, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
    6. Dayal Talukder & Love Chile, 2018. "Technological Innovation And Total Factor Productivity Growth Of Rice Production In Bangladesh In The Post-Liberalisation Era," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 6(2), pages 50-70, December.
    7. Dayal Talukder, 2014. "Agricultural Trade Liberalization and Poverty in Rural Bangladesh," Poverty & Public Policy, John Wiley & Sons, vol. 6(3), pages 282-307, September.
    8. Lin Liu & Honggang Sun, 2019. "The Impact of Collective Forestland Tenure Reform on the Forest Economic Efficiency of Farmers in Zhejiang Province," Sustainability, MDPI, vol. 11(8), pages 1-15, April.
    9. Talukder, Dayal & Chile, Love, 2014. "Characteristics of Rice Cultivation and Rural Rice Market in Bangladesh: Evidence from a Survey," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 15(2), pages 1-17.
    10. Ali, Ershad & Talukder, Dayal, 2010. "Agricultural Trade Liberalisation and Economic Growth in Developing Countries: Analysis of Distributional Consequences," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 11(2), pages 1-13, August.
    11. Amirul Islam & Ruhul Salim & Harry Bloch, 2016. "Does Regional Integration Affect Efficiency And Productivity Growth? Empirical Evidence From South Asia," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 28(2), pages 107-122, July.
    12. Yi Wang & Yingming Zhu & Maojun Yu, 2022. "Measuring the implementation effects of rural revitalization in China’s Jiangsu Province: Under the analytical framework of “deconstruction, assessment and brainstorming”," Growth and Change, Wiley Blackwell, vol. 53(3), pages 1146-1169, September.
    13. Anthony N. Rezitis & Maria A. Kalantzi, 2016. "Investigating Technical Efficiency and Its Determinants by Data Envelopment Analysis: An Application in the Greek Food and Beverages Manufacturing Industry," Agribusiness, John Wiley & Sons, Ltd., vol. 32(2), pages 254-271, April.

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