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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.

Suggested Citation

  • Tim Coelli & Sanzidur Rahman & Colin Thirtle, 2003. "A stochastic frontier approach to total factor productivity measurement in Bangladesh crop agriculture, 1961-92," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(3), pages 321-333.
  • Handle: RePEc:wly:jintdv:v:15:y:2003:i:3:p:321-333
    DOI: 10.1002/jid.975

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    References listed on IDEAS

    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 1243-1248, 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 325-332.
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    Cited by:

    1. Derek Headey & Mohammad Alauddin & D.S. Prasada Rao, 2010. "Explaining agricultural productivity growth: an international perspective," Agricultural Economics, International Association of Agricultural Economists, vol. 41(1), pages 1-14, January.
    2. A. Peyrache & A. N. Rambaldi, 2017. "Incorporating temporal and country heterogeneity in growth accounting—an application to EU-KLEMS," Journal of Productivity Analysis, Springer, vol. 47(2), pages 143-166, April.
    3. Mohammed Al- Mahish, 2017. "Does Balance of Payments Constrained Growth Model Hold in Saudi Arabia?," Journal of Finance and Economics Research, Geist Science, Iqra University, Faculty of Business Administration, vol. 2(1), pages 1-15, March.
    4. Anik, Asif Reza & Breustedt, Gunnar & Bauer, Siegfried, 2011. "The Impact of Corruption on Farmers' Efficiency in Rice Production: A Natural Experiment from Bangladesh," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114224, European Association of Agricultural Economists.
    5. Shilpa Chaudhary, 2012. "Trends in Total Factor Productivity in Indian Agriculture: State-level Evidence using non-parametric Sequential Malmquist Index," Working papers 215, Centre for Development Economics, Delhi School of Economics.
    6. Asante, Bright O. & Temoso, Omphile & Addai, Kwabena N. & Villano, Renato A., 2019. "Evaluating productivity gaps in maize production across different agroecological zones in Ghana," Agricultural Systems, Elsevier, vol. 176(C).
    7. Zaeske, Andrew, 2012. "Aggregate Technical Efficiency and Water Use in U.S. Agriculture," CERE Working Papers 2012:11, CERE - the Center for Environmental and Resource Economics.
    8. Mohammed Al-Mahish, 2017. "Economies of Scale, Technical Change, and Total Factor Productivity Growth of the Saudi Electricity Sector," International Journal of Energy Economics and Policy, Econjournals, vol. 7(3), pages 86-94.
    9. Hasan Dudu & Erol H. Cakmak & Nadir Ocal, 2015. "Drivers of Farm Efficiency in Turkey: A Stochastic Frontier Analysis," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 1(1), pages 45-63, June.
    10. Rouf, Abdur, 2015. "Conventional vs Natural Flood Control and Drainage Managements in a Tidal Coastal Zone: An Evaluation from a Productive Efficiency Perspective," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 256023, Agricultural Economics Society.
    11. Rahman, Sanzidur, 2004. "Regional Productivity Differences And Prospect For Convergence In Bangladesh Agriculture, 1964-1992," 2004 Annual meeting, August 1-4, Denver, CO 20047, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Sanzidur Rahman & Ruhul Salim, 2013. "Six Decades of Total Factor Productivity Change and Sources of Growth in Bangladesh Agriculture (1948–2008)," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(2), pages 275-294, June.
    13. S. Majumder & B. K. Bala & Fatimah Mohamed Arshad & M. A. Haque & M. A. Hossain, 2016. "Food security through increasing technical efficiency and reducing postharvest losses of rice production systems in Bangladesh," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(2), pages 361-374, April.
    14. A. Peyrache & A. N. Rambaldi, 2012. "A State-Space Stochastic Frontier Panel Data Model," CEPA Working Papers Series WP012012, School of Economics, University of Queensland, Australia.
    15. M. N. Asadullah & S. Rahman, 2009. "Farm productivity and efficiency in rural Bangladesh: the role of education revisited," Applied Economics, Taylor & Francis Journals, vol. 41(1), pages 17-33.

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