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Joint determination of the choice of growing season and economic efficiency of maize in Bangladesh

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  • Sanzidur Rahman
  • Md. Rahman
  • Md. Rahman

Abstract

The paper jointly evaluates the determinants of the choice of maize growing season (winter vs. summer maize) and economic efficiency of individual producers in Bangladesh using a sample selection framework applied to stochastic frontier models. Model diagnostics reveal that sample selection bias is significant, thereby justifying the use of this approach. Probit results reveal that the probability to choose winter maize are influenced positively by gross return, subsistence pressure and soil suitability, whereas extension contact influences choice negatively. Stochastic cost frontier results reveal that a rise in input prices and output level increases production cost as expected. Among the variables representing the production environment, soil suitability and stability of mean temperature reduce cost, whereas precipitation increases cost. The mean level of economic efficiency is estimated at 0.91, implying that scope still exists to reduce cost further by jointly eliminating technical and allocative inefficiency. Policy implications include measures to improve soil suitability, development of temperature-resistant varieties and price policies to check input price rise while boosting maize price, which will synergistically increase adoption rate as well as profitability of winter maize cultivation in Bangladesh.

Suggested Citation

  • Sanzidur Rahman & Md. Rahman & Md. Rahman, 2012. "Joint determination of the choice of growing season and economic efficiency of maize in Bangladesh," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 17(1), pages 138-150.
  • Handle: RePEc:taf:rjapxx:v:17:y:2012:i:1:p:138-150
    DOI: 10.1080/13547860.2012.640016
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    References listed on IDEAS

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    1. James J. Heckman, 1976. "Introduction to "Annals of Economic and Social Measurement, Volume 5, number 4"," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, National Bureau of Economic Research, Inc.
    2. William Greene, 2010. "A stochastic frontier model with correction for sample selection," Journal of Productivity Analysis, Springer, vol. 34(1), pages 15-24, August.
    3. William Greene, 2006. "A General Approach to Incorporating Selectivity in a Model," Working Papers 06-10, New York University, Leonard N. Stern School of Business, Department of Economics.
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    Cited by:

    1. Rouf, Abdur, 2018. "A Novel Approach to Verifying Evaluation of Agricultural Products with Productive Efficiency: An Empirical Study," 2018 Conference (62nd), February 7-9, 2018, Adelaide, Australia 273523, Australian Agricultural and Resource Economics Society.

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