Open AccessTechnical Efficiency and Its Determinants in Wheat Production: Evidence from Punjab, Pakistan
Author(s) -
Muhammad Kashif Nawaz,
Shamim Akhtar,
Adnan Nazir,
Muhammad Faisal
Publication year - 2020
Publication title -
journal of economic impact
Language(s) - English
Resource type - Journals
eISSN - 2664-9764
pISSN - 2664-9756
DOI - 10.52223/jei0201205
Subject(s) - allocative efficiency , production (economics) , crop production , crop , agricultural science , production efficiency , economic efficiency , agricultural engineering , agricultural economics , mathematics , microbiology and biotechnology , economics , agronomy , environmental science , agriculture , engineering , geography , biology , mechanical engineering , market economy , neoclassical economics , archaeology , macroeconomics
The purpose of the current study was to assess the allocative, technical, and economic efficiency of wheat crop produced in Punjab. Primary data were collected through a well-structured questionnaire. The economic efficiencies were estimated by the DEA technique using the farm level data gathered from 240 wheat growers of the Rajanpur district of Punjab, Pakistan. According to the results of the study the estimated efficiencies results show that the mean technical efficiency of the wheat crop is about 70%, the mean allocative efficiency is 74%, and the mean cost efficiency is 52%. The findings revealed that Pakistani wheat farms could minimize production costs by up to 30% to ensure the same level of production, using resources in optimal proportions and increasing technical efficiency. The findings also reveal that the current level of wheat production can be amplified by up to 30% by mollifying the technical efficiency of wheat crop.