Using measures of efficiency for regionally-targeted smallholder policy intervention: The case of Pakistan's horticulture sector

Shabbir Ahmad; Sriram Shankar; John Steen; Martie Louise Verreynne; Abid Aman Burki

doi:10.1016/j.landusepol.2020.105179

Using measures of efficiency for regionally-targeted smallholder policy intervention: The case of Pakistan's horticulture sector

Shabbir Ahmad^*, Sriram Shankar, John Steen, Martie Louise Verreynne, Abid Aman Burki

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

4 Citations (Scopus)

Abstract

The empirical literature on the sources of production efficiency mostly focuses on technical and scale efficiency, and the relative importance of mix efficiency is often overlooked. This paper estimates input-oriented technical and mix efficiency using a farm-level survey dataset of 730 smallholder horticulture farms in Pakistan. We estimate a Bayesian stochastic production frontier model to draw precise statistical inferences by using finite sample properties. We find that the estimated mean mix inefficiency (0.65) is roughly as large as mean technical inefficiency (0.64). Moreover, we detect large technical and mix efficiency disparities across agro-climatic zones and farm sizes, which we attribute to suboptimal farm practices. We conclude that policy-makers should focus on strategies that target to improve both technical and mix inefficiency.

Original language	English
Article number	105179
Journal	Land Use Policy
Volume	101
DOIs	https://doi.org/10.1016/j.landusepol.2020.105179
Publication status	Published - Feb 2021

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title = "Using measures of efficiency for regionally-targeted smallholder policy intervention: The case of Pakistan's horticulture sector",

abstract = "The empirical literature on the sources of production efficiency mostly focuses on technical and scale efficiency, and the relative importance of mix efficiency is often overlooked. This paper estimates input-oriented technical and mix efficiency using a farm-level survey dataset of 730 smallholder horticulture farms in Pakistan. We estimate a Bayesian stochastic production frontier model to draw precise statistical inferences by using finite sample properties. We find that the estimated mean mix inefficiency (0.65) is roughly as large as mean technical inefficiency (0.64). Moreover, we detect large technical and mix efficiency disparities across agro-climatic zones and farm sizes, which we attribute to suboptimal farm practices. We conclude that policy-makers should focus on strategies that target to improve both technical and mix inefficiency.",

keywords = "Aggregator function, D31, Developing economy, Horticulture sector, Mix efficiency, Productivity, Technical efficiency",

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T2 - The case of Pakistan's horticulture sector

AU - Ahmad, Shabbir

AU - Shankar, Sriram

AU - Steen, John

AU - Verreynne, Martie Louise

AU - Burki, Abid Aman

PY - 2021/2

Y1 - 2021/2

N2 - The empirical literature on the sources of production efficiency mostly focuses on technical and scale efficiency, and the relative importance of mix efficiency is often overlooked. This paper estimates input-oriented technical and mix efficiency using a farm-level survey dataset of 730 smallholder horticulture farms in Pakistan. We estimate a Bayesian stochastic production frontier model to draw precise statistical inferences by using finite sample properties. We find that the estimated mean mix inefficiency (0.65) is roughly as large as mean technical inefficiency (0.64). Moreover, we detect large technical and mix efficiency disparities across agro-climatic zones and farm sizes, which we attribute to suboptimal farm practices. We conclude that policy-makers should focus on strategies that target to improve both technical and mix inefficiency.

AB - The empirical literature on the sources of production efficiency mostly focuses on technical and scale efficiency, and the relative importance of mix efficiency is often overlooked. This paper estimates input-oriented technical and mix efficiency using a farm-level survey dataset of 730 smallholder horticulture farms in Pakistan. We estimate a Bayesian stochastic production frontier model to draw precise statistical inferences by using finite sample properties. We find that the estimated mean mix inefficiency (0.65) is roughly as large as mean technical inefficiency (0.64). Moreover, we detect large technical and mix efficiency disparities across agro-climatic zones and farm sizes, which we attribute to suboptimal farm practices. We conclude that policy-makers should focus on strategies that target to improve both technical and mix inefficiency.

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Using measures of efficiency for regionally-targeted smallholder policy intervention: The case of Pakistan's horticulture sector

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