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A stochastic frontier approach to total factor productivity measurement in Bangladesh crop agriculture, 1961-92

  • Tim Coelli

    (School of Economics, University of Queensland, Australia)

  • Sanzidur Rahman

    (School of Economic Studies, University of Manchester, UK)

  • Colin Thirtle

    (Department of Environmental Science and Technology, Imperial College London, UK)

This paper applies a stochastic production frontier model to measure total factor productivity growth, technical efficiency change and technological change in Bangladesh crop agriculture for the 31 observations from 1960|61 to 1991|92, using data for 16 regions. The results reveal that technical change followed a U-shaped pattern, rising from the early 1970s, when the green revolution varieties were adopted, giving an overall rate of technical progress at 0.27 per cent per year. However, technical efficiency declined throughout, at an estimated annual rate of 0.47 per cent. The combined effect of slow technical progress, dominated by the fall in technical efficiency resulted in total factor productivity (TFP) declining at a rate of 0.23 per cent per annum, with the rate of decline increasing in the later years. TFP change is shown to depend on the green revolution technology and agricultural research expenditures. Copyright © 2003 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/jid.975
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Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

Volume (Year): 15 (2003)
Issue (Month): 3 ()
Pages: 321-333

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Handle: RePEc:wly:jintdv:v:15:y:2003:i:3:p:321-333
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  1. Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-48, September.
  2. 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 325-32.
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