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Analyses of Technical Efficiency Using SDF and DEA Models: Evidence from Nepalese Agriculture

Author

Listed:
  • Trond Bjorndal

    (CEMARE - University of Portsmouth)

  • Chandra Bahadur Adhikari

    (Centre for Nepal and Asian Studies (CNAS) - Tribhuvan University)

Abstract

Alleviation of poverty is a central issue in Nepal. Given the limited stock of land, and the infant/unorganised manufacturing sector, increased demand for food has to be satisfied by improving production efficiency. This paper examines how this could be achieved. SDF and DEA models identify the existence of a high degree of technical inefficiency in Nepalese agriculture, suggesting that there is a substantial prospect of increasing agricultural productivity using the existing level of inputs and resources more efficiently. Among the three farm sizes in the data set, medium size farmers achieve a higher technical efficiency than large and small farm sizes, suggesting that productive efficiency can be increased with the encouragement of creating medium size holdings. The technical inefficiency model suggests the potential for shifting the production frontier upwards by providing ownership of land, increasing farmers' education and knowledge, and increasing land quality, including irrigation facilities.

Suggested Citation

  • Trond Bjorndal & Chandra Bahadur Adhikari, 2011. "Analyses of Technical Efficiency Using SDF and DEA Models: Evidence from Nepalese Agriculture," Post-Print hal-00708538, HAL.
    • Handle: RePEc:hal:journl:hal-00708538
    DOI: 10.1080/00036846.2011.572856
    Note: View the original document on HAL open archive server: https://hal.science/hal-00708538
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    References listed on IDEAS

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    1. Anna NOWAK & Tomasz KIJEK & Katarzyna DOMAŃSKA, 2015. "Technical efficiency and its determinants in the European Union," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(6), pages 275-283.
    2. Jindřich ŠPIČKA & Ondřej MACHEK, 2015. "Change in the production efficiency of European specialized milk farming," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(1), pages 1-13.

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