Open AccessEffects of partial quantity rationing of credit on technical efficiency of Boro rice growers in Bangladesh: Application of the stochastic frontier model
Author(s) -
Md. Ghulam Rabbany,
Yasir Mehmood,
Fazlul Hoque,
Tanwne Sarker,
Arshad Ahmad Khan,
Kh Zulfikar Hossain,
MZ Hossain,
Rana Roy,
Juhua Luo
Publication year - 2021
Publication title -
emirates journal of food and agriculture
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.304
H-Index - 28
eISSN - 2079-0538
pISSN - 2079-052X
DOI - 10.9755/ejfa.2021.v33.i6.2714
Subject(s) - inefficiency , credit rationing , agricultural science , production (economics) , agricultural economics , stochastic frontier analysis , rationing , economics , boro , microeconomics , interest rate , environmental science , finance , economic growth , health care , chemistry , organic chemistry , boron
In this study, we analyzed the effects of the partial quantity rationing of credit on the technical efficiency of Boro rice growers in the Pabna district of Bangladesh. Before conducting the field survey, we designed a theoretical framework and identified farm households affected by the partial quantity rationing of credit. Data were collected from 174 Boro rice growers and analyzed in two stages, where the technical efficiency of Boro rice growers was assessed using stochastic frontier analysis, and the inefficiency effects model was then applied to evaluate determinants of the technical efficiency. The mean technical efficiency of Boro rice growers was 78%, which indicates that their technical efficiency was 22% beyond the production frontier curve. The variables comprising the household head’s age, education level, seed quality, formal training, access to the market, farm labor, tillage cost, fertilizer cost, irrigation cost, and price of seedlings significantly affected the technical efficiency of rice growers. The variables of interest comprising the rate and partial quantity rationing of credit had significant negative effects on the technical efficiency of rice growers. The findings obtained in this study will help to enhance the actual production level using the available resources and improve the food security situation in Bangladesh.