A stochastic frontier and corrected Ordinary Least Square models of determining technical efficiency of canal irrigated paddy farms in Tamil Nadu
##plugins.themes.bootstrap3.article.main##
Abstract
A comparative study between Stochastic frontier production function and corrected Ordinary Least Square (OLS) were estimated to determine technical efficiency in paddy production. Further, the study has assessed the effect of farm specific socio economic factors affecting the technical efficiency. This study was conducted in Cauvery delta zone of seven taluks about canal irrigation. The number of farmers in canal irrigated region about 109 from seven taluks is considered. The data were obtained from the cost of cultivation scheme of Tamil Nadu centre. The results of Cobb Douglas stochastic production function indicated that fertilizer, seed, pesticide and machine hours significantly influenced yield of paddy. The results also indicated that it will be highly profitable to increase the use of seed, and need to rationalize the labour use and pesticide usage. The effect of qualitative variable namely age and education of the farmer would indicate that the older farmers technical efficiency become less compared to the younger farmer, and also implying that investments on human capital take away their participation from agriculture. As a comparative study in general, COLS produced the lowest mean technical efficiency with 85 percent while the Stochastic frontier analysis produced the highest mean technical efficiency with 90 per cent.
##plugins.themes.bootstrap3.article.details##
##plugins.themes.bootstrap3.article.details##
Canal Irrigation, COLS, Rice, Stochastic Frontier, Technical Efficiency
Ogunniyi, L. T, Adepoju, A. A. and Ganiyu, M. O. (2012). A comparative analysis of economic efficiency between traditional and improved rice varieties farmers in oriade local government area of osun state. Trends in Agricultural Economics, 5(3): 70-82
Kalirajan, K. P., Obwona, M. B. and Zhao, S. (1996). A
decomposition of total factor productivity growth: The case of Chinese agricultural growth before and after reforms. American Journal of Agricultural Economics, 78: 331-338
Njeru, J. (2004). Factors influencing technical efficiency in wheat production in Kenya. New Research Proposal submitted to African Economic Research Consortium, Nairobi, Kenya
Sharma, V. P. and Datta, K. K. (1997). Technical efficiency in wheat production on reclaimed alkali soils, Productivity. Indian Journal of Agricultural Economics,
38(2): 334
Sani, A, Yakubu, A. A. and Bello, H. M. (2013). Resource-Use efficiency in rice production under small scale irrigation in Bunkure local government area of Kano state. Nigerian Journal of Basic and Applied Science,
18(2): 292-296
Lawal, A. F., Agboluaje, A. A. and Liman, A. (2013). Profitability and productivity of growers of new rice for Africa (NERICA) in the Southern Guinea Savanna of Niger State, Nigeria. PAT; 9 (2): 29-42
Aigner.D .J., Lovell, C. A. K. and Schmidt, P. (1997).
Formulation and estimation of stochastic frontier production function models. Journal of Econometrics, 6(1):21-37
Meeusen, W. and Van J. Broeck. (1977). Efficiency estimation from Cobb-Douglas production with composed error. International Economic Review, 18:
435-444
Coelli, T .J. (1996). Recent development in frontier modeling and efficiency measurement. Australian Journal of
Agricultural Economics, 39 (3): 219-245
Winsten, C. B. (1957). Discussion on Mr. Farrell’s Paper. Journal of the Royal Statistical Society, Series A (120): 282 – 284
Greene, W. H. (1993), The Econometric Approach to Efficiency Analysis, in H. O. Fried, C. A. K. Lovell and S. S. Schmidt (Eds.), The Measurement of Productive Efficiency: Techniques and Applications, London: Oxford Univ. Press, 68-117
Richmond, J. (1974). Estimating the efficiency of production. International Economics Review, 15: 515-521
Maddala, G. S. (1999) Limited Dependent and Qualitative Variables in Econometrics Cambridge University Press, New York
Kumbhaker, S. C. and Lovell, C. A. K. (2000). Stochastic Frontier Analysis. Cambridge University Press,
Cambridge.
Kutaula, S. S. (1991). Estimating production technical
efficiency for individual farms of paddy and wheat under land reclamation technology. Indian Journal of Agricultural Economics, 48(2): 226-236
Ayinde, O.E., Adewumi, M.O. and Ojehomon, V.E.T. (2009). Determinants of Technical Efficiency and
Varietal Gap of Rice Production in Nigeria: A meta- Frontier Model Approach. International Association of Agricultural Economics conference, Beijing, China Pp. 16-22
This work is licensed under Attribution-NonCommercial 4.0 International (CC BY-NC 4.0) © Author (s)
