The objective of this paper is to apply the Translog Stochastic

The objective of this paper is to apply the Translog Stochastic Frontier production model (SFA) and Data Envelopment Analysis (DEA) to estimate efficiencies over time and the Total Factor Productivity (TFP) growth rate for Bangladeshi rice crops (Aus, Aman and Boro) throughout the most recent data available comprising the period 1989C2008. Stochastic Frontier Analysis (SFA), which is parametric, and b) Data Envelopment Analysis (DEA), which is nonparametric. The two alternative approaches have different strengths and weaknesses. The main advantage of DEA is that it does not require any information more than input and output quantities. The efficiency is measured relative to the highest observed performance rather than an average [1]. However, a DEA-based estimate is sensitive to measurement errors or other noise in the data because DEA is deterministic and attributes all deviations from the frontier to inefficiencies. The strength of SFA is that it considers stochastic noise in data and also allows for the statistical testing of hypotheses concerning production structure NAV3 and degree of inefficiency. Its main weaknesses are that it requires an explicit imposition of a particular parametric functional form representing the underlying technology and also an explicit distributional assumption for the inefficiency terms. The rationale for using two competing approaches is to countercheck whether results obtained by one can be confirmed by the other. Agricultural development has recently returned to the forefront of development issues, drawing attention to the impacts of agricultural productivity change on economic growth and poverty reduction in both rural and urban areas. Agricultural productivity and its determinants are important but have not always been well measured or well understood. Bangladesh currently uses 75% of its arable land to produce 94% of country’s total food grain requirement. Few researchers have done studies on the TFP growth rate of Bangladesh crop agriculture. Most studies consider the rice production as one crop, for example, Ahmed [2] examines the factor behinds the growth of TFP of rice and the market-orientated policy reforms, Alam et al [3] measured the TFP for the period of premarket reform (1987) and 57574-09-1 IC50 postmarket reform (2000 and 2004), Coelli et al [4] reported the TFP growth, technical efficiency change and technological change in Bangladesh crop agriculture for the 31 observations from 1960/1961 to 1991/1992, using data for 16 regions. Wadud and White 57574-09-1 IC50 [5] compared the efficiency of SFA and DEA of rice farm household in Bangladesh. They collected data from two villages by a survey conducted in August and September in 1997. Adachi et al [6] determined the factors’ effects on productivity of Boro and Aman. Productivity growth from new agricultural technology was declining, and that trend was a threat to sustainable economic development of Bangladesh in 1990s [7]. Although overall food production steadily increased, the yield of modern rice varieties declined from 3.6 tons per hectare in 1969 to 2.4 tons in 1994 [8]. The production of rice is not enough to feed the nation, and 1.5 million tons of annual shortage of food grain exists. 57574-09-1 IC50 Bangladesh will require about 27. 26 million tons of rice for the year 2020. During this time, total rice area will also shrink to 10.28 million hectares. Therefore, rice yield needs to be increased from the present 2.74 to 3.74 tons per hectare. To gain full self-sufficiency in rice production, the rice production has to be increased by making use of the available technologies [9]. To solve the 57574-09-1 IC50 shortage, Bangladesh needs to know the condition of the total factor productivity of rice and efficiency by type of rice. Measures of efficiency indicate the possibility of improvement in total productivity. Nguyen et al. [10] measured efficiency of rice farms in South Korea. They concluded that without major policy interventions, rice farms could improve economic and environmental performance by being more technically efficient. Alene [11] measured and compared TFP growth in African agriculture over the period 1970 to 2004. The principal source of growth was found as technical change, rather than as efficiency change. However, to our knowledge, no study on the comparative TFP growth rate and technical efficiency of the three types of rice (Aus, Aman and Boro) grown in Bangladesh has been carried out. The aim of this paper is to estimate the efficiency level and TFP as well as to build up model for forecasting the TFP of grain creation in Bangladesh. For this function, we calculate the TFP of.

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