Agricultural Reviews

  • Chief EditorPradeep K. Sharma

  • Print ISSN 0253-1496

  • Online ISSN 0976-0741

  • NAAS Rating 4.63

Frequency :
Quarterly (March, June, September & December)
Indexing Services :
AGRICOLA, Google Scholar, CrossRef, CAB Abstracting Journals, Chemical Abstracts, Indian Science Abstracts, EBSCO Indexing Services, Index Copernicus
Submit

Reviewer Article

Agricultural Reviews, volume 43 issue 1 (march 2022) : 77-83

Measurement and Determinants of Technical Efficiency in Crop Production: A Review

Isha Sharma, M.K. Sekhon
1Department of Economics and Sociology, Punjab Agricultural University, Ludhiana-141 004, Punjab, India. 
Cite article:- Sharma Isha, Sekhon M.K. (2022). Measurement and Determinants of Technical Efficiency in Crop Production: A Review. Agricultural Reviews. 43(1): 77-83. doi: 10.18805/ag.R-2144.

ABSTRACT

Output is determined by the efficiency with which available technologies are used i.e. with the improvement in technical efficiency. There are extensive numbers of studies focusing on efficiency as a means of fostering agriculture production. The article reviews the literature devoted to technical efficiency analysis in various countries and its applications to agricultural production. The studies reviewed focused particularly on rice and wheat making them the most studied agricultural product by researchers. The review of efficiency analysis shows that agricultural output can be increased without additional inputs with given existing technology. Technical efficiency of agricultural crops like wheat, paddy, cotton etc grown in different countries of the world like India, Pakistan, Ethopia, Srilanka were reviewed and it was found that except for farm size, the variables like farmer education and experience, contacts with extension personnel and access to credit, tend to have a positive and statistically significant impact on technical efficiency.

REFERENCES

  1. Afriat, S.N. (1972) Efficiency estimates of production functions. International Economic Review. 13: 568-98.
  2. Ahmed, M., Rafiq, M. and Ali, A. (1999). An analysis of technical efficiency of rice farmers in Pakistani Punjab. The Bangladesh Journal of Agricultural Economics. 22: 79-86 https://core. ac.uk/download/pdf/211602769.pdf.
  3. Ahmed, B., Haji, J. and Geta, E. (2013). Analysis of farm households’ technical efficiency in production of smallholder farmers: The case of Girawa District, Ethiopia. American-Eurasian Journal Agricultural and Environmental Science. 13(12): 1615-1621. http://www.idosi.org/aejaes/jaes13(12)13/5.pdf.
  4. Aigner, D.J., Lovell, C.A.K. and Schmidt, P. (1977). Formulation and estimation of stochastic frontier production function models. Journal of Econometrics. 6(1): 21-37. https://doi.org/10.1016/0304-4076(77)90052-5.
  5. Aigner, D.J. and Chu. S.F. (1968). On Estimating The Industry Production Function. American Economic Review. 58: 826-39.
  6. Ali, M. and Flinn, J.T. (1989). Profit efficiency in basmati rice production. American Journal of Agricultural Economics. 71: 303-310. http://hdl.handle.net/10.2307/1241587.
  7. Ali, M. and Chaudry, M.A. (1990). Inter-Regional farm efficiency in Pakistan’s Punjab: A frontier production function study. Journal of Agricultural Economics. 41: 62-74. https://doi. org/10.1111/j.1477-9552.1990.tb00619.x.
  8. Al-hassan, S. (2012). Technical efficiency in smallholder paddy farms in Ghana: An analysis based on different farming systems. Journal of Economics and Sustainable Development. 3: 91-105.https://pdfs.semanticscholar.org/9bfc/a42d141 cfbb04ba4bee542d5f5673e649138.pdf.
  9. Arindam, B. (1994). Technical efficiency of irrigated farms in a village of Bangladesh. Indian Journal of Agricultural Economics. 49: 7078. file:///C:/Users/S/Downloads/06%20Technical%20Efficiency%20of%20Irrigated%20Farms%2001-JANUARY-MARCH-1994-6.pdf.
  10. Arsalanbod, M. (2005). The efficiency of farmers in North West of Iran. Indian Journal of Agricultural Economics. 60: 101-109. http://ageconsearch.umn.edu/record/204390/files/11 Mohammadreza.pdf.
  11. Asefa, S. (2012). Who is technically efficient in crop production in Tigray region, Ethiopia? Stochastic frontier approach. Global Advanced Research Journal of Agricultural Science. 1(7): 191-200. file:///C:/Users/S/Downloads/who%20is% 20technically%20efficient%20in%20crop%20production%20in%20tigray%20region%20ethiopia%20stochastic %20frontier%20approach.pdf.
  12. Banker, R.D., Charnes, A. and Cooper, W.W. (1984). Some models for estimating technical and scale in-efficiencies in data envelopment analysis. Management Science. 309: 1078-92. https://personal.utdallas.edu/~ryoung/phdseminaBCC1984.pdf.
  13. Bakhsh, K., Ahmad, B. and Hassan, S. (2006). Food security through increasing technical efficiency. Asian Journal of Plant    Sciences. 5: 970-976. https://scialert.net/abstract/?doi =ajps.2006.970.976.
  14. Barro, R. and Xala-i-Martin, X. (1995). Economic Growth. McGraw-Hill, New York. http://www.sciencedirect.com/science/article/pii/S0165-1889(97)00007-9.
  15. Bhatt, M.S. and Bhatt, S.A. (2014). Technical efficiency and farm size productivity- Micro level evidence from Jammu and Kashmir. Int. J. Food Agri. Econ. 2: 27-49. https://www. foodandagriculturejournal.com/vol2.no4.pp27.pdf.
  16. Beltran, E. and Reig, M. (2014). Comparing conventional and organic citrus grower efficiency in Spain. Agricultural Systems. 129: 115-123. ftp://147.156.210.157/RePEc/pdf/eec_ 1406.pdf
  17. Beshir, H. (2016). Technical efficiency measurement and their differential in Wheat production : The case of smallholder farmers in South Wollo. Int J of Econ Busekhonsiness and finance. 4(1): 1-16. https://pdfs.semanticscholar.org/f03c/43bd76545eadc5ab8b3890aac0a885f539c4.pdf.
  18. Bhargava, A., Jamison, D.T., Lau, L.J. and Murray, C.J. (2001). Modeling the effects of health on economic growth. Journal of Health Economics20: 423 - 440. doi: 10.1016/s0167-6296(01)00073-x.
  19. Bloom, D. and Canning, D. (2000). The health and wealth of nations. Science. 287: 1207 - 1208. doi: 10.1126/science.287.    5456.1207.
  20. Bozoglu, M. and Ceyhan,V. (2006). Measuring technical efficiency and exploring the inefficiency determinants of vegetable farms in Samsun province, Turkey. Journal of Agricultural Systems. 94: 649-56. doi:10.1016/j.agsy.2007.01.007.
  21. Bravo-Ureta, B.E. and Evenson, R.E.(1994). Efficiency in agricultural production: The case of peasant farmers in eastern Paragnay. Agricultural Economics. 10: 27-37. file:///C:/Users/S/Downloads/agec1994v010i001a003.pdf.
  22. Bravo-Ureta, B.E. and Pinheiro, A.E. (1997). Technical, economic and allocative efficiency in peasant farming: Evidence from the Dominican Republic. The Developing Economies. 35(1) 48-67. https://www.ide.go.jp/library/English/Publish/Periodicals/De/pdf/97_01_03.pdf.
  23. Coelli, T., Rahman, S. and Thirtle, C. (2002). Technical, allocative, cost and scale efficiencies in Bangladesh rice cultivation: A non-parametric approach. Journal of Agricultural Economics. 533: 607-626. https://doi.org/10.1111/j.1477-9552. 2002. tb00040.x.
  24. Coelli, T.J. and Battese, G. (1996). Identification of factors which influence the technical inefficiency of Indian farmers. Australian Journal of Agricultural Economics. 40: 103-128.
  25. Dawson, P.J. (1985). Measuring technical efficiency from production function: Some further estimates. Journal of Agricultural Economics. 38: 27-37. https://doi.org/10.1111/j.1477-9552. 1985.tb00154.x.
  26. Dessale, M. (2019). Analysis of technical efficiency of small holder wheat-growing farmers of Jamma district, Ethiopia. Dessale Agric and Food Secur. 8: 1-8. https://doi.org /10.1186/s40066-018-0250-9.
  27. Deolalikar, A.B. (1988). Nutrition and labour productivity in agriculture: Estimates for rural South India. The Review of Economics and Statistics. 70(3): 406 - 413. http://links.jstor.org/sici ?sici=0034-6535%28198808%2970%3A3%3C406%3 ANALPIA%3E2.0.CO%3B2-Wandorigin=repec.
  28. Dhehibi, B., Alimari, A., Haddad, N. and Hassan, A.W. (2014). Technical efficiency and its determinants in food crop production: A case study of farms in West Bank, Palestine. J. Agr. Sci. Tech. 16: 717-730. file:///C:/Users/S/Downloads/Dhehibietal-JAST2014%20(1).pdf. 
  29. Edriss, A.H., Tchale, H. and Wobst, P. (2004). The impact of labour market liberalization on maize productivity and rural poverty in Malawi. Working paper, Policy Analysis for Sustainable Agricultural Development (PASAD).Center for development research, University of Bonn, Germany. https://www. future -agricultures.org/wp-content/uploads/pdf-archive/Edriss %20et%20al%20-%202004%20-%20Impact%20of%20 Labour%20Market%20Liberalization.pdf.
  30. Endrias, G., Bogale, A., Belay, B. and Elias, E. (2013). Productivity and efficiency analysis of smallholder maize producers in Southern Ethiopia. Journal of Human Ecology. 41(1): 67-75 https://doi.org/10.1080/09709274.2013.11906554
  31. Ekanayake, S.A.B and Jayasuriya, S.K. (1987). Measurement of firm specific technical efficiency: A comparison of models. Journal of Agricultural Economics. 38: 115-22. https://doi.org/10.1111/j.1477-9552.1987.tb01032.x.
  32. Farrell, M.J. (1957). The measurement of technical efficiency in the production of sugar cane in Central Negros area, Philippines: An application of data envelopment analysis. J.ISSAAS15: 77-90.https://agris.fao.org/agris-search/search.do? record ID=PH2012000194.
  33. Fernandez , M.D. and Nuthall, P.L. (2012). Farm size and its effect on the productive efficiency of sugar cane farms in central Negros, the Philippines. J. ISSAAS. 18(1): 49-61. https://pdfs.semanticscholar.org/97a8/447bd1b52bd35a 28abce 8761acaca45faf56.pdf.
  34. Goyal, S.K., Suhag, K.S. and Pandey, U.K. (2006). An estimation of technical efficiency of Paddy farmers in Haryana state of India. Indian Journal of Agricultural Economics. 61: 108-122. https://pdfs.semanticscholar.org/dc64/614d5 ebfcb 40830e65949736f9eccd452cf6.pdf.
  35. Gilligan, D.O. (1998). Farm size, productivity and economic efficiency: Accounting differences in efficiency of farms by size in Honduras, Paper in American Agricultural Economics Association Annual Meeting, Salt Lake City, Utah, U.S.A. file:///C:/Users/S/Downloads/spgill01.pdf.
  36. Hayami, Y. and Ruttan, V. (1985). Agricultural Development: An International Perspective. Baltimore. The Johns Hopkins University Press. Baltimore. http://garfield. library. upenn. edu/classics1988/A1988P408700001.pdf.
  37. Jayaram, H., Chandrashekar, G.S. and Achoth, L. (1992). An economic analysis of technical efficiency in rice cultivation in Mandya: Some issues in resource pricing. Indian Journal of Agricultural Economics. 47: 677-682. file:///C:/Users/S/Downloads/09%20An%20Economic%20Analysis%20of%20 Technical %20Efficiency%20in%20Rice%20Cultivation.pdf
  38. Kalaitzandonakes, N.G., Wu, S. and Ma, J. (1992). The relationship between technical efficiency and farm size revisited. Canadian Journal of Agricultural Economics. 40: 427-442. https://doi.org/10.1111/j.1744-7976.1992.tb03705.x
  39. Kalirajan, K.P. and Shand, R.T. (1989). A generalized measure of technical efficiency. Applied Economics. 21: 25-34. https://doi.org/10.1080/772284229.
  40. Kalirajan, K.P. and Bhende, M.J. (2007). Technical efficiency of major food and cash crops in Karnataka. Indian Journal of Agricultural Economics. 62(2): 176-192. https://pdfs. semanticscholar.org/bc15/a97a74e9cbb77f5dfb6afd 993a3b5f22e03a.pdf.
  41. Kaur, M., Mahal, A.K., Sekhon, M.K. and Kingra, H.S. (2010). Technical efficiency of wheat production in Punjab: A regional analysis. Agri Econ Res Rev. 23: 173-79. https://ageconsearch. umn. edu/record/92165.
  42. Kolawole, O. (2006). Determinants of profit efficiency among small-scale rice farms in Nigeria, Paper presented in Agricultural Economists Conference, Gold Coast, Australia.
  43. Kuznets, S. (1966). Modern economic growth: Rate, structure and spread. The Economic Journal. 77(308): 882-883. https://doi.org/10.2307/2229582.
  44. Lengemeier, M.R. and Lano, F.D. (1999).Characteristics of Highly Efficient Farms, Paper presented in Western Agricultural Economics Association Annual Meeting.
  45. Manoharan, R., Selvakumar, K.N. and Pandian S.S. (2004). Efficiency of milk production in Pondicherry : A frontier production approach. Indian J. Anim. Res. 38(1): 20-24.
  46. Mamo, T., Getahun, W., Chebil, A., Tesfaye, A., Debele, T., Assefa, S. and Solomon, T. (2018). Technical efficiency and yield gap of smallholder wheat producers in Ethiopia: A stochastic frontier analysis. African Journal of Agricultural Research. 13(28): 1407-1418. https://doi.org/10.5897/AJAR2016. 12050.
  47. Meeusen, W. and Broeck, J.V.D. (1977). Efficiency Estimation from Cobb Douglas Production Function with Composed Error. International Economic Review18: 435-44. http://dx.doi.org/10.2307/2525757.
  48. Narala, A. and Zala, Y.C. (2010). Technical efficiency of rice farms under irrigated conditions in Central Gujarat. Agri Econ Res Rev. 23: 375-381. https://pdfs.semanticscholar.org/1137/02b0232fd004bb916dd1e8ee7dcc0142417a.pdf.
  49. Ngango, U. and Kim, S.K. (2019). Assessment of technical efficiency and its potential determinants among small-scale coffee farmers in Rwanda. Agriculture, MDPI, Open Access Journal. 9(7): 1-12. https://www.mdpi.com/2077-0472/9/7/161/pdf
  50. Nishimizu, M. and Page, J.M. (1982). Total factor productivity growth, technological progress and technical efficiency change: Dimensions of productivity change in Yugoslavia. The Economic Journal. 92: 920-936. https://doi.org/10.2307/2232675.
  51. Pandian, S.S., Selvakumar, K.N., Prabu, M. and Ganeshkumar, B. (2012). Technical efficiency of milk production in Tamil Nadu of India : Frontier production function approach. Asian Journal of Dairy and Food Research. 31: 264-267
  52. Pradhan, K.C and Mukherjee, S. (2018). Examining technical efficiency in Indian agricultural production using production frontier model. South Asia Economic Journal. 19: 22-42. http://sae.sagepub.com/content/19/1/22.abstract.
  53. Shanmugam, K.R. and Venkataramani, A. (2006). Technical efficiency in agricultural production and its determinants: An exploratory study at the district level. Ind. J. Agri. Econ. 612: 169-184. https://pdfs.semanticscholar.org/cd98/ddca 2fa4a4ff6d199881fe3d53a61aba2684.pdf
  54. Shanmugam, K.R. (2003). Technical efficiency of rice, groundnut and cotton farms in Tamil Nadu. Ind J Agri Econ. 581: 101-114. http://ageconsearch.umn.edu/record/297933/files/ijae-564.pdf
  55. Shapiro, K.H. (1983). Efficiency differentials in peasant agriculture and their implications for development policies. Journal of Development Studies. 19: 179-90. https://doi.org/10.1080/00220388308421857
  56. Singh, S. (2008). An analysis of factors affecting technical efficiency: A study of wheat cultivation in Haryana. Arth Anvesan. 2: 9-13. https://www.smvdu.ac.in/images/stories/pdf/Publications/arthanvesan/2007-07-2008-01arthanvesan.pdf
  57. Singh, K., Madan, M.D., Rabbani, A.D., Pratheesh, O.S. and Thapa, G. (2009). Technical Efficiency of freshwater aquaculture and its determinants in Tripura, India. Agricultural Economics Research Review. 22: 185-195. http://ageconsearch. umn.edu/record/57394/files/2-DrKehar-Singh.pdf
  58. Sibiko, K.W., Owuor, G., Birachi,E., Gido, E.Q., Ayuya, O.I. and Mwangi, J.K. (2013). Analysis of determinants of productivity and technical efficiency among smallholder common bean farmers in Eastern Uganda. Curr. Res. J. Econ. Theory. 5: 44-55. http://maxwellsci.com/print/crjet/v5-44-55.pdf
  59. Sekhon, M.K., Mahal, M.K., Kaur, M. and Sidhu, M.S. (2010). Technical efficiency in crop production: A region-wise analysis. Agric Econ. Res. Rev. 23: 367-374. http://ageconsearch. umn.edu/record/97017/files/17-MK-Sekhon.pdf
  60. Squires, D. and Tabor, D. (1991). Technical efficiency and future production gains in Indonesian agriculture. The Developing Economies. 29: 258-70. https://doi.org/10.1111/j.1746-1049.1991.tb00211.x
  61. Taylor, G.T. and Shonkwiler, J.S. (1986). Alternative stochastic specialization of the frontier production function in the analysis of agricultural credit programmes and technical efficiency. Journal of Development Economics. 21: 149-160. http://www.sciencedirect.com/science/article/pii/    0304-3878(86)90044-1.
  62. Tadesse, S. and Krishnamoorthy, B. (1997). Technical efficiency in paddy farms of Tamil Nadu. An analysis based on farm size and ecological zone. Agri Econ. 16: 185-192. https://doi.org/10.1016/S0169-5150(97)00004-2
  63. Terin, M., Kulekci,M. and Yildirim, I. (2015). Measuring technical, allocative and economic efficiencies of dairy farms in Western Turkey. Indian J. Anim. Res. 51: 165-169.
  64. Tilak, T.B.G. (1993). Education and agricultural productivity in Asia: A review. Indian Journal ofAgriculturalEconomics. 48(2): 187-200. file:///C:/Users/S/Downloads/02%20Education %20and%20Agricultural%20Productivity%20in%20Asia % 2002-APRIL-JUNE-1993-3.pdf
  65. Tipi, T.,Yildiz, N., Nargelecekenler, M. and Cetin, B. (2009). Measuring the technical efficiency and determinants of efficiency of rice (Oryza sativa) farms in Marmara region, Turkey. New Zealand J. of Crop and Horticultural Science. 37: 121-129. https://doi.org/10.1080/01140670909510257.
  66. Wudineh, G.T. and Endrias, G. (2016). Technical efficiency of smallholder wheat farmers: The case of Welmera district, Central Oromia, Ethiopia. Journal of Development and Agricultural Economics. 8(2): 39-51. https://academic journals.org/journal/JDAE/article-full-text-pdf/81871125 6963
  67. Yami, M., Solomon, T., Beg, B., Fufa, F., Alemu, T. and Alemu, D. (2013). Source of technical inefficiency of smallholder wheat farmers in selected waterlogged areas of Ethiopia: A translog production function approach. African Journal of Agricultural Research. 8: 3930-3940. https://academic journals.org/article/article1380879343_Yami %20et% 20al.pdf. 
In this Article
    Contact us
    Follow us

    Editorial Board

    View all (0)