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Production structure and technical efficiency analysis of sericulture in Pakistani Punjab

Author

Listed:
  • Ahmad, Munir
  • Shami, Tanvir Khaliq

Abstract

The objective of this paper are to study the sericulture production structure and the analysis of farm-level technical efficiency measures. The results show that most of the farmers involved in this enterprise are illiterate. This industry is further characterised by inappropraite rearing sheds, complete lack of extension service, dependence on government forests for mulbery leaves - facing peak season shortage, supply of poor quality silkworm seed and improper processing and marketing facilities. Labour shares more than 70 percent of the total cost of production and however, promises reasonably high return on investment. Stochastic production frontier analysis indicates that the sericulture enterprise faces increasing returns to scale. Average technical efficiency is found to be 0.88 with a minimum of 0.3 and a maximum of 0.98 leaving significant scope for improvement in productivity and thus profitability. The results further show that technical efficiency is positively associated with the size of the activity.

Suggested Citation

  • Ahmad, Munir & Shami, Tanvir Khaliq, 1999. "Production structure and technical efficiency analysis of sericulture in Pakistani Punjab," MPRA Paper 17467, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:17467
    as

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    File URL: https://mpra.ub.uni-muenchen.de/17467/2/MPRA_paper_17467.pdf
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    References listed on IDEAS

    as
    1. George E. Battese & Sohail J. Malik & Manzoor A. Gill, 1996. "An Investigation Of Technical Inefficiencies Of Production Of Wheat Farmers In Four Districts Of Pakistan," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1-4), pages 37-49.
    2. Sarfraz K. Qureshi & G. M. Arif, 2001. "Profile of Poverty in Pakistan, 1998-99," MIMAP Technical Paper Series 2001:05, Pakistan Institute of Development Economics.
    3. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-444, June.
    4. Ahmad, Munir & Boris E., Bravo-Ureta, 1996. "Technical efficiency measures for dairy farms using panel data: a comparison of alternative model specifications," MPRA Paper 37703, University Library of Munich, Germany.
    5. 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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    sericulture production structure; farm-level technical efficiency measures; Punjab; Pakistan;

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics

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