Volume 9, Issue 1, September 2014, Pages 140–149
Naveed Miraj1 and Shahid Ali2
1 MSc (Hons), Department of Agricultural & Applied Economics The University of Agriculture, Peshawar, Pakistan
2 Assistant Professor, Department of Agricultural & Applied Economics The University of Agriculture, Peshawar, Pakistan
Original language: English
Copyright © 2014 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
This study estimated technical efficiency of garlic farms in district Peshawar, Khyber Pakhtunkhwa, Pakistan. Data for this study was collected from 110 farmers through multistage sampling technique. Cobb-Douglas frontier production function was estimated through maximum likelihood estimation technique. Stata software was used for estimation. Results indicated that the mean technical efficiency of garlic farms was 84.60 per cent ranging from 57.62 to 96.07 per cent. This implies that if the average farm in the sample was to achieve the technical efficiency level of its most efficient counterpart, then the average farm could increase garlic yield by 11.94 per cent. Similarly the most technically inefficient farm could increase garlic yield by 40.67 per cent. These results suggest that output can be improved by using available resources efficiently with the existing technology. The estimated gamma value was 0.80 implies that 80 percent variation in the production of garlic was due to inefficiency factors. Results further showed that seed rate, labor, tractor hours, FYM and irrigation have positive and statistically significant effect on the production of garlic. Experience of garlic growers plays an important role in garlic production so arrangement of training programs for farmers is a policy option for enhancement of garlic productivity. Motivation of farmers to use recommended quantity of seed for higher productivity of garlic is another recommendation.
Author Keywords: Stochastic frontier, Cobb Douglas production fuction, Technical efficiency, Productivity, ML estimates, Garlic, Peshawar-Pakistan.
Naveed Miraj1 and Shahid Ali2
1 MSc (Hons), Department of Agricultural & Applied Economics The University of Agriculture, Peshawar, Pakistan
2 Assistant Professor, Department of Agricultural & Applied Economics The University of Agriculture, Peshawar, Pakistan
Original language: English
Copyright © 2014 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
This study estimated technical efficiency of garlic farms in district Peshawar, Khyber Pakhtunkhwa, Pakistan. Data for this study was collected from 110 farmers through multistage sampling technique. Cobb-Douglas frontier production function was estimated through maximum likelihood estimation technique. Stata software was used for estimation. Results indicated that the mean technical efficiency of garlic farms was 84.60 per cent ranging from 57.62 to 96.07 per cent. This implies that if the average farm in the sample was to achieve the technical efficiency level of its most efficient counterpart, then the average farm could increase garlic yield by 11.94 per cent. Similarly the most technically inefficient farm could increase garlic yield by 40.67 per cent. These results suggest that output can be improved by using available resources efficiently with the existing technology. The estimated gamma value was 0.80 implies that 80 percent variation in the production of garlic was due to inefficiency factors. Results further showed that seed rate, labor, tractor hours, FYM and irrigation have positive and statistically significant effect on the production of garlic. Experience of garlic growers plays an important role in garlic production so arrangement of training programs for farmers is a policy option for enhancement of garlic productivity. Motivation of farmers to use recommended quantity of seed for higher productivity of garlic is another recommendation.
Author Keywords: Stochastic frontier, Cobb Douglas production fuction, Technical efficiency, Productivity, ML estimates, Garlic, Peshawar-Pakistan.
How to Cite this Article
Naveed Miraj and Shahid Ali, “ESTIMATION OF TECHNICAL EFFICIENCY OF GARLIC FARMS IN DISTRICT PESHAWAR, PAKISTAN: A STOCHASTIC FRONTIER ANALYSIS,” International Journal of Innovation and Scientific Research, vol. 9, no. 1, pp. 140–149, September 2014.
