Volume 4, Issue 1, March 2018, Page: 8-16
Credit Availability and Technical Efficiency of Boro Rice in Pabna District, Bangladesh: A Stochastic Frontier Analysis
Md. Zuel Rana, Department of Economics, Pabna University of Science and Technology, Pabna, Bangladesh
Md. Yahia Bapari, Department of Economics, Pabna University of Science and Technology, Pabna, Bangladesh
Received: Dec. 31, 2017;       Accepted: Jan. 29, 2018;       Published: May 30, 2018
DOI: 10.11648/j.ijsdr.20180401.12      View  895      Downloads  57
Abstract
The goal of this study is to analyze the technical efficiency and its determinants of rice production in Bangladesh using data from Boro rice farmers of Pabna district. Required data are collected from 100 Boro rice producing farmers of Pabna district selected using multistage random sampling procedure. In scrutinizing the data, farm specific technical efficiency scores are estimated using the Cobb-Douglas Stochastic Frontier Production function approach. The study found that technical efficiency of Boro rice farms in Pabna district are 92.3% which indicate that Boro rice farms have been operating below the maximum level of production frontier. It is also found that 'ploughing cost' 'pesticide cost', 'labor cost', and 'irrigation' are the significant elements that affect the level of technical efficiency while ''fertilizer cost' and 'seed' are found insignificant in moving technical efficiency of Boro rice production in the study area. Farmers can increase their production of Boro rice by 7.7% given the available technology through increasing the use of labor, seed also irrigation inputs and also by using proper amounts of fertilizer and pesticide inputs. The outcomes from the assessed inefficiency effect model make known that farm size, age, education, training and credit facility are the significant influences which are negatively related to technical inefficiency of Boro rice production. This study provides that steps to raise education, training as well as credit facilities are influential to reduce technical inefficiency of rice production in the study area. Intuitively, in this connection as a long run approach, the investment on research connected activities should be increased to change the production technology.
Keywords
Technical Efficiency, Credit Availability, Stochastic Frontier Approach, Rice Production, Efficiency Index, Inefficiency Factors, Bangladesh
To cite this article
Md. Zuel Rana, Md. Yahia Bapari, Credit Availability and Technical Efficiency of Boro Rice in Pabna District, Bangladesh: A Stochastic Frontier Analysis, International Journal of Sustainable Development Research. Vol. 4, No. 1, 2018, pp. 8-16. doi: 10.11648/j.ijsdr.20180401.12
Copyright
Copyright © 2018 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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