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A Non-Parametric Analysis of Rice Production Efficiency in Sri Lanka

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  • Thibbotuwawa, Manoj
  • Mugera, Amin W.
  • White, Benedict

Abstract

This article investigates the production efficiency of rice farming in Sri Lanka using cross section survey data of 90 farms. Past studies on rice farming have mostly focused on technical efficiency (TE). Here, we examine technical efficiency, allocative efficiency (AE) and cost efficiency (CE) using the data envelopment analysis (DEA) approach. On average, the farms were 87% technically efficient; irrigated farms were more efficient (88%) than rain-fed farms (82%). Average cost, allocative and scale efficiencies were 73%, 84% and 87%. Bias corrected TE estimate suggests an expected output expansion of 25% with a given input combination in order to become fully efficient as opposed to 16% based on the original estimates. In addition, a second stage Tobit regression shows that efficiency is influenced by farm size, water security, ownership, seed quality, family labour endowment and female labour participation.

Suggested Citation

  • Thibbotuwawa, Manoj & Mugera, Amin W. & White, Benedict, 2012. "A Non-Parametric Analysis of Rice Production Efficiency in Sri Lanka," 2012 Conference (56th), February 7-10, 2012, Freemantle, Australia 124423, Australian Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:aare12:124423
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    File URL: http://purl.umn.edu/124423
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    5. Wadud, Md. Abdul., 2003. "Technical, Allocative, and economic efficiency of farms in Bangladesh: a stochastic frontier and DEA approach," Journal of Developing Areas, Tennessee State University, College of Business, vol. 37(1), pages 109-126, September.
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    14. Frantisek Brazdik, 2006. "Non-Parametric Analysis of Technical Efficiency: Factors Affecting Efficiency of West Java Rice Farms," CERGE-EI Working Papers wp286, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
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    Cited by:

    1. Thibbotuwawa, Manoj & Mugera, Amin & White, Ben, 2013. "Production Efficiency and Technology Gap in Irrigated and Rain-fed Rice Farming Systems in Sri Lanka: Non Parametric Approach," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152181, Australian Agricultural and Resource Economics Society.

    More about this item

    Keywords

    technical efficiency; cost efficiency; bootstrap; rice farming; Sri Lanka; Crop Production/Industries;

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