Open AccessAn Efficiency Analysis of Punjab’s Cotton-Wheat System
Author(s) -
Muhammad Ishaq Javed,
Sultan Ali Adil,
Sarfaraz Hassan,
Asghar Ali
Publication year - 2009
Publication title -
the lahore journal of economics
Language(s) - English
Resource type - Journals
eISSN - 1811-5446
pISSN - 1811-5438
DOI - 10.35536/lje.2009.v14.i2.a4
Subject(s) - allocative efficiency , tobit model , inefficiency , data envelopment analysis , economics , agriculture , agricultural economics , regression analysis , econometrics , agricultural science , mathematics , statistics , microeconomics , environmental science , geography , archaeology
This study examines the technical, allocative, and economicefficiencies of the cotton-wheat farming system in Punjab, Pakistan. It alsoinvestigates the determinants of these efficiencies using a non-parametricdata envelopment analysis (DEA) technique. Technical, allocative, andeconomic inefficiency scores are separately regressed on socioeconomic andfarm-specific variables to identify the sources of inefficiency using a Tobitregression model. The mean technical, allocative, and economic efficienciescalculated for the system were 0.87, 0.44, and 0.37, respectively. Ourresults indicate that years of schooling and the number of contacts withextension agents have a negative impact on the inefficiency of cotton-wheatfarming in Punjab.