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Tracing the impact of market reform on productivity growth of rice at the farm level in Bangladesh

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  • Mohammad Jahangir Alam
  • Ismat Ara Begum
  • Sanzidur Rahman
  • Jeroen Buysse
  • Guido Van Huylenbroeck

Abstract

The paper measures the total factor productivity (TFP), technical change (TC) and technical efficiency change (TEC) in rice production, and traces the impact of market reform policies of the 1990s on these indices at the farm level in Bangladesh using a unique cohort of three-period panel data (1987, 2000 and 2004) of 73 farms by applying stochastic production frontier approach. Results reveal that the TFP index has increased by 27% largely due to an upward shift of the technology frontier. Although TC has increased by an impressive 57%, TEC declined by 30.1% during the post-reform period, thereby depressing overall TFP growth. The market liberalization policies exerted significantly positive impacts on TC and TFP growth but negatively on TEC. Farm size and household size also significantly improved these indices while education, tenancy and off-farm income exerted negative effects. Policy implications include continued liberalization of markets and land reform measures to increase farm size.

Suggested Citation

  • Mohammad Jahangir Alam & Ismat Ara Begum & Sanzidur Rahman & Jeroen Buysse & Guido Van Huylenbroeck, 2014. "Tracing the impact of market reform on productivity growth of rice at the farm level in Bangladesh," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 19(3), pages 391-408, July.
  • Handle: RePEc:taf:rjapxx:v:19:y:2014:i:3:p:391-408
    DOI: 10.1080/13547860.2014.908533
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    Cited by:

    1. 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.
    2. Sanzidur Rahman & Basanta Kumar Barmon, 2019. "Greening Modern Rice Farming Using Vermicompost and Its Impact on Productivity and Efficiency: An Empirical Analysis from Bangladesh," Agriculture, MDPI, Open Access Journal, vol. 9(11), pages 1-13, November.

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