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Measuring Technical Efficiency of Wheat Farmers in Egypt

  • André Croppenstedt

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

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    Liberalization of Egyptian agricultural policy and new wheat technology has led to significant increases in area allocated to wheat as well as wheat yields. The wheat self-sufficiency ratio increased from 21 percent in 1986 to about 59 percent over the 2001-03 period. However, the country still imports 4-5 million tonnes of wheat per year. This paper addresses the issue of what kind of output gains can be achieved from improving technical efficiency, i.e. how much more output can be produced with the given levels of inputs and current technology. On average wheat farmers are found to operate 20 percent below the potential output. Better information on irrigation management and two or more extension visits were found to raise output by 14 and 7 percent respectively. However, neither factor was found to affect technical efficiency. Technical efficiency was found not to vary with farm size.

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    Paper provided by Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA) in its series Working Papers with number 05-06.

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    Length: 13 pages
    Date of creation: 2005
    Date of revision:
    Handle: RePEc:fao:wpaper:0506
    Contact details of provider: Postal: Agricultural Sector in Economic Development Service FAO Viale delle Terme di Caracalla 00153 Rome Italy
    Phone: +39(6) 57051
    Fax: +39 06 57055522
    Web page: http://www.fao.org/es/esa/
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    1. Lau, Lawrence J & Yotopoulos, Pan A, 1971. "A Test for Relative Efficiency and Application to Indian Agriculture," American Economic Review, American Economic Association, vol. 61(1), pages 94-109, March.
    2. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    3. Richards, Alan, 1994. "The Egyptian farm labor market revisited," Journal of Development Economics, Elsevier, vol. 43(2), pages 239-261, April.
    4. Kherallah, Mylene & Lofgren, Hans & Gruhn, Peter & Reeder, Meyra M., 2000. "Wheat policy reform in Egypt: adjustment of local markets and options for future reforms," Research reports 115, International Food Policy Research Institute (IFPRI).
    5. George E. Battese, 1997. "A Note On The Estimation Of Cobb-Douglas Production Functions When Some Explanatory Variables Have Zero Values," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1-3), pages 250-252.
    6. Caudill, Steven B & Ford, Jon M & Gropper, Daniel M, 1995. "Frontier Estimation and Firm-Specific Inefficiency Measures in the Presence of Heteroscedasticity," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(1), pages 105-11, January.
    7. de Janvry, Alain & Fafchamps, Marcel & Sadoulet, Elisabeth, 1991. "Peasant Household Behaviour with Missing Markets: Some Paradoxes Explained," Economic Journal, Royal Economic Society, vol. 101(409), pages 1400-417, November.
    8. Richmond, J, 1974. "Estimating the Efficiency of Production," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 15(2), pages 515-21, June.
    9. Alderman, Harold & von Braun, Joachim, 1986. "Egypt's food subsidy policy : Lessons and options," Food Policy, Elsevier, vol. 11(3), pages 223-237, August.
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