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Farm Productivity and Efficiency in Rural Bangladesh: The Role of Education Revisited

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  • Asadullah, M. Niaz
  • Rahman, Sanzidur

Abstract

This paper reassesses the debate over the role of education in farm pro duction in Bangladesh using a large dataset on rice producing hous eholds from 141 villages. Average and stochastic production frontier functions are estimated to ascertain the effect of education on productivity and efficiency. A full set of proxies for farm education stock variables are incorporated to investigate the 'internal' as well as 'external' returns to education. The external effect is investigated in the context of rural neighborhoods. Our analysis reveals that in addition to raising rice productivity and boosting potential output, household education significantly reduces production inefficiencies. However, we are unable to find any evidence of externality benefit of schooling. We discuss the implication of these findings for rural education programs in Bangladesh.

Suggested Citation

  • Asadullah, M. Niaz & Rahman, Sanzidur, 2006. "Farm Productivity and Efficiency in Rural Bangladesh: The Role of Education Revisited," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25482, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae06:25482
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    References listed on IDEAS

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    1. Ahmed, Raisuddin & Hossain, Mahabub, 1990. "Developmental impact of rural infrastructure in Bangladesh:," Research reports 83, International Food Policy Research Institute (IFPRI).
    2. Hasnah & Fleming, Euan & Coelli, Tim, 2004. "Assessing the performance of a nucleus estate and smallholder scheme for oil palm production in West Sumatra: a stochastic frontier analysis," Agricultural Systems, Elsevier, vol. 79(1), pages 17-30, January.
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    Keywords

    Agriculture; returns to education; stochastic production frontier; Bangladesh; Labor and Human Capital; Productivity Analysis; I21; Q12; N5;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries

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