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Labour Productivity and Rice Production in Bangladesh: A Stochastic Frontier Approach

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Abstract

In this paper we examine the significance of labour productivity and use of inputs in explaining technical efficiency of rice production in Bangladesh. We find that higher labour productivity can stimulate high efficiency gains, but increased use of inputs (except land) induces negative marginal effect on technical efficiency. While more use of land, improved seeds and fertilizers contributes to the rate of labour-productivity induced marginal efficiency gain, any additional labour depresses this rate. Given the agricultural policy reform history in Bangladesh, our findings imply that rather than providing input subsidy or output price support, future reforms should put more emphasis on providing incentives to enhance labour productivity and encourage formalization of the agricultural labour market.

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  • Selim, Sheikh, 2007. "Labour Productivity and Rice Production in Bangladesh: A Stochastic Frontier Approach," Cardiff Economics Working Papers E2007/10, Cardiff University, Cardiff Business School, Economics Section, revised Feb 2010.
  • Handle: RePEc:cdf:wpaper:2007/10
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    Cited by:

    1. Regmi, Madhav & Oladipo, Obembe & Jason, Bergtold, 2016. "Efficiency Evaluation Of Rice Production In Bangladesh," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229990, Southern Agricultural Economics Association.
    2. 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.

    More about this item

    Keywords

    Stochastic frontier; non-neutral frontier; technical efficiency;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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