Credit Availability and Technical Efficiency of Boro Rice in Pabna District, Bangladesh: A Stochastic Frontier Analysis

Md. Zuel Rana; Md. Yahia Bapari

doi:doi:10.11648/j.ijsdr.20180401.12

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Credit Availability and Technical Efficiency of Boro Rice in Pabna District, Bangladesh: A Stochastic Frontier Analysis

Md. Zuel Rana, Md. Yahia Bapari

Published in International Journal of Sustainable Development Research (Volume 4, Issue 1)

Received: 31 December 2017 Accepted: 29 January 2018 Published: 30 May 2018

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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.

Published in	International Journal of Sustainable Development Research (Volume 4, Issue 1)
DOI	10.11648/j.ijsdr.20180401.12
Page(s)	8-16
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2018. Published by Science Publishing Group

Keywords

Technical Efficiency, Credit Availability, Stochastic Frontier Approach, Rice Production, Efficiency Index, Inefficiency Factors, Bangladesh

References

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[3]	Aigner, D. J., Lovell, K. C. A. and Schmidt, P. (1977) Formulation and Estimation of Stochastic Models. Journal of Econometrics, 6(---): pp 21-37.
[4]	Bangladesh Bureau of Statistics (BBS), (2006). Statistical Yearbook of Bangladesh 2004. Dhaka: Statistics Division. Ministry of Planning, Government of the People’s Republic of Bangladesh.
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[6]	Bhuiyan, N. I., Paul, D. N. R., and Jabbar, M. A., (2002). Feeding the Extra Millions by 2025: Challenges for Rice Research and Extension in Bangladesh. A keynote paper presented at National Workshop on Rice Research and Extension-2002. Bangladesh, Gazipur, 29-31 January, 2002.
[7]	Coelli, T., (1996a). A Guide to FRONTIER Version 4.1: A Computer Program for Stochastic Frontier Production and Cost Function Estimation. Centre for Efficiency and Productivity Analysis, University of New England, Armidale, NSW, 2351, CEPA Working Paper 96/07.
[8]	Coelli, T., G. E. Battese,(1996), “Identification of Factors which Influence the Technical Inefficiency of Indian Farmers. Australian Journal of Agricultural Economics, 40, 103-128.
[9]	Coelli, T. J.,(1995), “Recent Development in Frontier Modelling and Efficiency Measurement. Australian Journal of Agricultural Economics, 39(---): pp 219-245.
[10]	[Coelli, T. J., Rahman, S. and Thirtle, C., (2002) “Technical, Allocative, Cost and Scale Efficiencies in Bangladesh Rice Cultivation: A Non-parametric Approach”, Journal of Agricultural Economics”, 2002, Vol.53, No.3, pp.607-626.
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[12]	Hasan, M., Elias Hossain, Ataul Gani Osmani(2016). “Technical Efficiency of Boro Rice Production in Jhenaidah District of Bangladesh: A Stochastic Frontier Approach. International Journal of Agricultural Economics, Vol. 1, No. 4, 2016, pp. 103-107.
[13]	Hasnain, M. N., Md. Elias Hossain, Md. Khairul Islam (2015). Technical Efficiency of Boro Rice Production in Meherpur District of Bangladesh: A Stochastic Frontier Approach. American Journal of Agriculture and Forestry, Vol. 3, No. 2, 2015, pp. 31-37.
[14]	Hossain, M. E., and Rahman, Z., (2012). Technical efficiency analysis of rice farmers in Naogaon district: An application of the stochastic frontier approach. Journal of Economics and Development Studies, 1(1), 1-20.
[15]	Khan, A., Huda, A. F., and Alam, A.(2010). Farm household technical efficiency: A study on rice producers in selected areas of Jamalpur District in Bangladesh. European Journal of Social Sciences, 14(2), 262-271.
[16]	Meeusen, W. and Van den Broeck, J.(1977) Efficiency Estimation from Cobb- Douglas Production Functions with Composed Error. International Economic Review, 18 (---): pp 435- 444.
[17]	Nargis and Lee (2013) “Efficiency Analysis Of Boro Rice Production In North Central Region Of Bangladesh.” The Journal of Animal & Plant Sciences, 23(2): 2013, Page: 527-533.
[18]	Rahman, K. M. M. (2002). Measuring Efficiency of Producing Rice in Bangladesh: A Stochastic Frontier Analysis, Wissenschaftsverlag Vauk Kiel KG in Germany, ISBN 3-8175-0357-1, pp. 1-215.
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APA Style

Md. Zuel Rana, Md. Yahia Bapari. (2018). Credit Availability and Technical Efficiency of Boro Rice in Pabna District, Bangladesh: A Stochastic Frontier Analysis. International Journal of Sustainable Development Research, 4(1), 8-16. https://doi.org/10.11648/j.ijsdr.20180401.12

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ACS Style

Md. Zuel Rana; Md. Yahia Bapari. Credit Availability and Technical Efficiency of Boro Rice in Pabna District, Bangladesh: A Stochastic Frontier Analysis. Int. J. Sustain. Dev. Res. 2018, 4(1), 8-16. doi: 10.11648/j.ijsdr.20180401.12

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AMA Style

Md. Zuel Rana, Md. Yahia Bapari. Credit Availability and Technical Efficiency of Boro Rice in Pabna District, Bangladesh: A Stochastic Frontier Analysis. Int J Sustain Dev Res. 2018;4(1):8-16. doi: 10.11648/j.ijsdr.20180401.12

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@article{10.11648/j.ijsdr.20180401.12,
  author = {Md. Zuel Rana and Md. Yahia Bapari},
  title = {Credit Availability and Technical Efficiency of Boro Rice in Pabna District, Bangladesh: A Stochastic Frontier Analysis},
  journal = {International Journal of Sustainable Development Research},
  volume = {4},
  number = {1},
  pages = {8-16},
  doi = {10.11648/j.ijsdr.20180401.12},
  url = {https://doi.org/10.11648/j.ijsdr.20180401.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijsdr.20180401.12},
  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.},
 year = {2018}
}

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TY  - JOUR
T1  - Credit Availability and Technical Efficiency of Boro Rice in Pabna District, Bangladesh: A Stochastic Frontier Analysis
AU  - Md. Zuel Rana
AU  - Md. Yahia Bapari
Y1  - 2018/05/30
PY  - 2018
N1  - https://doi.org/10.11648/j.ijsdr.20180401.12
DO  - 10.11648/j.ijsdr.20180401.12
T2  - International Journal of Sustainable Development Research
JF  - International Journal of Sustainable Development Research
JO  - International Journal of Sustainable Development Research
SP  - 8
EP  - 16
PB  - Science Publishing Group
SN  - 2575-1832
UR  - https://doi.org/10.11648/j.ijsdr.20180401.12
AB  - 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.
VL  - 4
IS  - 1
ER  -

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Author Information

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

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APA Style

Md. Zuel Rana, Md. Yahia Bapari. (2018). Credit Availability and Technical Efficiency of Boro Rice in Pabna District, Bangladesh: A Stochastic Frontier Analysis. International Journal of Sustainable Development Research, 4(1), 8-16. https://doi.org/10.11648/j.ijsdr.20180401.12

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ACS Style

Md. Zuel Rana; Md. Yahia Bapari. Credit Availability and Technical Efficiency of Boro Rice in Pabna District, Bangladesh: A Stochastic Frontier Analysis. Int. J. Sustain. Dev. Res. 2018, 4(1), 8-16. doi: 10.11648/j.ijsdr.20180401.12

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AMA Style

Md. Zuel Rana, Md. Yahia Bapari. Credit Availability and Technical Efficiency of Boro Rice in Pabna District, Bangladesh: A Stochastic Frontier Analysis. Int J Sustain Dev Res. 2018;4(1):8-16. doi: 10.11648/j.ijsdr.20180401.12

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@article{10.11648/j.ijsdr.20180401.12,
  author = {Md. Zuel Rana and Md. Yahia Bapari},
  title = {Credit Availability and Technical Efficiency of Boro Rice in Pabna District, Bangladesh: A Stochastic Frontier Analysis},
  journal = {International Journal of Sustainable Development Research},
  volume = {4},
  number = {1},
  pages = {8-16},
  doi = {10.11648/j.ijsdr.20180401.12},
  url = {https://doi.org/10.11648/j.ijsdr.20180401.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijsdr.20180401.12},
  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.},
 year = {2018}
}

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TY  - JOUR
T1  - Credit Availability and Technical Efficiency of Boro Rice in Pabna District, Bangladesh: A Stochastic Frontier Analysis
AU  - Md. Zuel Rana
AU  - Md. Yahia Bapari
Y1  - 2018/05/30
PY  - 2018
N1  - https://doi.org/10.11648/j.ijsdr.20180401.12
DO  - 10.11648/j.ijsdr.20180401.12
T2  - International Journal of Sustainable Development Research
JF  - International Journal of Sustainable Development Research
JO  - International Journal of Sustainable Development Research
SP  - 8
EP  - 16
PB  - Science Publishing Group
SN  - 2575-1832
UR  - https://doi.org/10.11648/j.ijsdr.20180401.12
AB  - 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.
VL  - 4
IS  - 1
ER  -

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