Assessing the technical efficiency of small farmers cultivating wheat in Punjab, Pakistan: A Stochastic Frontier Analysis (SFA)

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Published: Apr 15, 2024
Keywords:
Technical efficiency, Stochastic Frontier Analysis, PERI

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Baber Amin
a:1:{s:5:"en_US";s:32:"International Islamic University";}
Muhammad Avais Tahir
Punjab Economic Research Institute (PERI)
Sajid Amin
Department of Economics, Government College University Lahore
Shahzad Hussain
Department of Economics, Government College University's Lahore

Abstract

Agriculture is an important sector in developing countries since it employs the bulk of the people and contributes significantly to GDP. Wheat is an important crop for both money and food. Land utilization, productivity, and efficiency all play a role in increasing agricultural output. The data was obtained from Punjab Economic Research Institute (PERI), Lahore. The dataset used in this research encompasses 419 small-scale wheat farmers from 2018-19 and offers comprehensive information regarding production costs and input utilization for the wheat crop. The SFA analysis yielded an average technical efficiency (TE) estimate of 84%. The findings suggest that TE can be increased by 16 percent without altering the level of inputs utilized.


Keywords: Technical efficiency, Stochastic frontier analysis, PERI.

Article Details

Issue
Vol. 32 No. 1 (2023): Kashmir Economic Review, Volume 32, Issue 1, June 2023
Section
Articles
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Author Biographies

Muhammad Avais Tahir, Punjab Economic Research Institute (PERI)

Muhammad Avais Tahir is working as Chief of Research at PERI, Punjab.

Sajid Amin, Department of Economics, Government College University Lahore

Sajid Amin is working as Research Assistant at Government College University Lahore , Pakistan.

Shahzad Hussain, Department of Economics, Government College University's Lahore

Dr Shahzad Husain is working as Associate Professor at Government College University, Lahore , Pakistan.