Technical and environmental efficiency of agriculture sector in South Asia: a stochastic frontier analysis approach
- PDF / 1,141,167 Bytes
- 20 Pages / 439.37 x 666.142 pts Page_size
- 20 Downloads / 192 Views
Technical and environmental efficiency of agriculture sector in South Asia: a stochastic frontier analysis approach Zainab Bibi1 · Dilawar Khan1 · Ihtisham ul Haq1 Received: 15 December 2019 / Accepted: 28 September 2020 © Springer Nature B.V. 2020
Abstract The purpose of this study was to measure and assess comparative study of technical and environmental efficiency of agriculture sector in South Asia using balanced panel data for the period 2002–2016. The translog stochastic frontier analysis approach was applied to estimate output-oriented technical efficiency and input-oriented environmental efficiency. Results of translog production model give that output elasticity w.r.t. land, labor, capital and fertilizer is 2.13, 1.26, 0.01 and 0.17, respectively. Log likelihood test shows that there is technical inefficiency in the agriculture sector of South Asian countries. The average value of output-oriented technical efficiency for South Asian countries was 0.92 ranging from 0.82 to 0.97. This suggests that agricultural production of South Asian region could be increased up to 8 percent by eliminating the effects of technical inefficiency. Moreover, the findings show that Sri Lanka is the most technically efficient country having efficiency 0.99 followed by India (0.98), Bhutan (0.93), Bangladesh (0.89), Nepal (0.88) and Pakistan (0.85). The results of input-oriented environmental efficiency score of South Asia were 0.77 ranging from 0.57 to 0.97. This shows that there is opportunity to enhance environmental efficiency of South Asian countries by 23%. Sri Lanka achieved the highest environmental efficiency (0.97) followed by India (0.96), Bhutan (0.72), Bangladesh (0.71), Pakistan (0.67) and Nepal (0.57). It is recommended that there must be collaboration among the South Asian countries in research and development especially in agriculture sector on priority bases. Keywords Efficiency · Agriculture · Stochastic frontier analysis · Pakistan
1 Introduction Utilization of fertilizer is a key factor of grain yields. As globally indicated by the Food and Agriculture Organization (FAO), the fertilizer adds 40–60% increase to the agriculture output. South Asian countries are using 150 kg per hectare excessive fertilizer for agriculture sector that will cause depletion of natural resources and cause adverse impacts on environment too (FAO 2018). South Asian countries include Afghanistan, * Dilawar Khan [email protected] 1
Department of Economics, Kohat University of Science & Technology, Kohat 26000, Pakistan
13
Vol.:(0123456789)
Z. Bibi et al.
Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka, with a territory of 5.2 million square kilometers that is about 1% of the total world populace. South Asia is the most densely populated region in the world. South Asia is the home of about 1.8 billion people that is approximately 25% of the total populace. About 57% of South Asia has an agricultural land, and about 60% population of South Asia is involved in agriculture sector. It provides livelihoo
Data Loading...
