Profit efficiency among Bangladeshi rice farmers

Rahman, S. ORCID: https://orcid.org/0000-0002-0391-6191 (2003) Profit efficiency among Bangladeshi rice farmers. Food Policy, 28 (5-6). pp. 487-503. ISSN 0306-9192 doi: 10.1016/j.foodpol.2003.10.001

Abstract/Summary

Production inefficiency is usually analyzed by its three components—technical, allocative, and scale efficiency. In this study, we provide a direct measure of production efficiency of the Bangladeshi rice farmers using a stochastic profit frontier and inefficiency effects model. The data, which are for 1996, include seven conventional inputs and several other background factors affecting production of modern or high yielding varieties (HYVs) of rice spread across 21 villages in three agro-ecological regions of Bangladesh. The results show that there are high levels of inefficiency in modern rice cultivation. The mean level of profit efficiency is 77% suggesting that an estimated 23% of the profit is lost due to a combination of technical, allocative and scale inefficiency in modern rice production. The efficiency differences are explained largely by infrastructure, soil fertility, experience, extension services, tenancy and share of non-agricultural income.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/107888
Identification Number/DOI	10.1016/j.foodpol.2003.10.001
Refereed	Yes
Divisions	No Reading authors. Back catalogue items
Publisher	Elsevier
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