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Technical Efficiency Analysis of Wheat Farms in the Punjab, Pakistan: DEA Approach

Author

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  • Muhammad Aamir, Shahzad
  • Waqar, Akram
  • Muhammad, Khan

Abstract

The wheat productivity in the Punjab is less than the potential maximum due to technical farm and management issues. The farm level panel survey data was used for the said purpose comprising 17 districts of the province of the Punjab from the period 2005-06 to 2007-08. The technical efficiency of wheat farms was analyzed using Data Envelopment Analysis (DEA) approach. Subsequently, the same was calculated by analyzing the socioeconomic factors responsible for (in) efficiency using Tobit Regression Model. The DEA didn’t accommodate statistical noise such as random shocks which were beyond the control of farmers. However, the technical efficiency of wheat farms was estimated using the DEA approach. The mean technical efficiency estimated through variable return to scale (VRS) was 60.13 percent and constant return to scale (CRS) was 56.61 percent. The results of analyses were supported by the literature. The technical efficiency could be improved by educating the young farmers, building road infrastructure and providing access to essential inputs to farmers. The study undertaken supports the argument that technically wheat farmers are less efficient in the Punjab, Pakistan.

Suggested Citation

  • Muhammad Aamir, Shahzad & Waqar, Akram & Muhammad, Khan, 2016. "Technical Efficiency Analysis of Wheat Farms in the Punjab, Pakistan: DEA Approach," MPRA Paper 81846, University Library of Munich, Germany, revised 01 Oct 2017.
  • Handle: RePEc:pra:mprapa:81846
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    References listed on IDEAS

    as
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    3. Munir Ahmad & Ghulam Mustafa Chaudhry & Mohammad Iqbal, 2002. "Wheat Productivity, Efficiency, and Sustainability: A Stochastic Production Frontier Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 41(4), pages 643-663.
    4. Wadud, Md. Abdul., 2003. "Technical, Allocative, and economic efficiency of farms in Bangladesh: a stochastic frontier and DEA approach," Journal of Developing Areas, Tennessee State University, College of Business, vol. 37(1), pages 109-126, September.
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    7. Khem Sharma & Pingsun Leung & Halina Zaleski, 1997. "Productive Efficiency of the Swine Industry in Hawaii: Stochastic Frontier vs. Data Envelopment Analysis," Journal of Productivity Analysis, Springer, vol. 8(4), pages 447-459, November.
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    More about this item

    Keywords

    Data Envelopment Analysis; Variable Return to Scale; Constant Return to Scale.;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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