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Farm productivity and efficiency in rural Bangladesh: The role of education revisited

  • M. Niaz Asadullah
  • Sanzidur Rahman

This paper reassesses the debate over the role of education in farm production in Bangladesh using a large dataset on rice producing households from 141 villages. Average and stochastic production 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 neighbourhoods. Our analysis reveals that in addition to raising rice productivity and boosting potental output, household education significantly reduces production efficiencies. However, we are unable to find any evidence of externality benefit of schooling - neighbour`s education does not matter in farm production. We discuss the implication of these findings for rural education programs in Bangladesh.

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Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number WPS/2005-10.

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Date of creation: 01 Nov 2005
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Handle: RePEc:oxf:wpaper:wps/2005-10
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  16. Simon Appleton & Arsène Balihuta, 1996. "Education and agricultural productivity: evidence from Uganda," CSAE Working Paper Series 1996-05, Centre for the Study of African Economies, University of Oxford.
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  19. Weir, Sharada & Knight, John, 2004. "Externality Effects of Education: Dynamics of the Adoption and Diffusion of an Innovation in Rural Ethiopia," Economic Development and Cultural Change, University of Chicago Press, vol. 53(1), pages 93-113, October.
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