Abstract
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. © 2003 Elsevier Ltd. All rights reserved.
Publication Date
2003-01-01
Publication Title
Food Policy
Volume
28
Issue
45448
Publisher
Elsevier BV
ISSN
0306-9192
Embargo Period
2024-11-25
First Page
487
Last Page
503
Recommended Citation
Rahman, S. (2003) 'Profit efficiency among Bangladeshi rice farmers', Food Policy, 28(45448), pp. 487-503. Elsevier BV: Retrieved from https://pearl.plymouth.ac.uk/gees-research/1141
