The Relation Between Property Rights, Farm Size and Technical Efficiency for the Developing Countries' Agricultural Sector

2020 ◽  
Vol 32 (5) ◽  
pp. 749-762
Author(s):  
Arash Dourandish ◽  
Sayed Saghaian ◽  
Naser Shahnoushi Forushani ◽  
Nazanin Mohammadrezazadeh ◽  
Sina Kuhestani
Author(s):  
Rajni Kapoor ◽  
Nimai Das

The study aims to explore labor freedom in the agricultural sector for enhancing the efficiency of farming through policy change towards assigning property rights, rental contracts, and better wage-employment options to rural workers. Labor freedom emphasizes land reform and development policy for improving the economic status and capabilities of rural workers. The paper assessed the labor freedom index, weighted through agricultural property rights, labor wage contracts, and rural development policy. Data envelopment analysis is used to assess farm-level efficiency under the framework of Tobit regression for different size-based farm categories. Farm-level information was collected through a primary survey of 336 rural households of an advanced agricultural state in India. The study found a positive association between farm size and intensity of labor freedom, although the extent of freedom differs among farms. Size-specific variation was also observed for allocative efficiency such that marginal and medium-sized farms are more efficient than smaller ones. Tobit regression indicated labor freedom to be positively and significantly related to the efficiency of marginal, small and overall farms with enhancing efficiency of 25, 17 and nearly 20%, respectively; however, estimates of labor freedom insignificantly increased the efficiency of mediums farms, by 4.8%. This result suggests that labor freedom positive and significantly affects the efficiency of farms in general, and marginal and small farms in particular. Of course, the elasticity estimate of enhancing efficiency through labor freedom for medium farmers is found at a lower level.


2021 ◽  
Vol 13 (3) ◽  
pp. 1132
Author(s):  
Gabriel A. Sampaio Morais ◽  
Felipe F. Silva ◽  
Carlos Otávio de Freitas ◽  
Marcelo José Braga

In developing countries, irrigation can help to decrease poverty in rural areas through increased employment in the agricultural sector. Evidence shows that irrigation may increase farm productivity and technical efficiency. In this paper, we estimate the effect of irrigation on farm technical efficiency in Brazil using the 2006 Agricultural Census dataset on more than 4 million farms. We estimate a stochastic production frontier at farm level, considering potential selection bias in irrigation adoption. We find that farms using irrigation are on average 2.51% more technically efficient compared to rain-fed farms. Our findings also suggest that while small farms are more efficient than medium and large farms, the largest difference in technical efficiency between rain-fed and irrigated farms is among large farms. Our results indicate that policies that seek to support expansion of irrigation adoption has also the potential to achieve greater rural development given the estimated effects estimated in this paper among very small and small farms, which are more than 70% of the farms in Brazil.


Economies ◽  
2020 ◽  
Vol 8 (2) ◽  
pp. 34
Author(s):  
Anbes Tenaye

The efficient use of inputs is indispensable in many developing countries, such as Ethiopia. This study assesses the level and determinants of technical efficiency of smallholder farmers using the true fixed effects (TFE) model. The TFE model separates inefficiency from unobserved heterogeneity. Empirical data come from four rounds of panel data (1994–2009) from the Ethiopian rural household survey (ERHS). A one-step maximum likelihood estimator was employed to estimate the Cobb-Douglas stochastic frontier production function and factors influencing technical efficiency. The results indicated that the major variables affecting technical efficiency are policy responsive, albeit to varying degrees: education of the household head, family size, farm size, land fragmentation, land quality, credit use, extension service, off-farm employment, and crop share. The analyses also identify variables amenable to policy changes in the production function: labor, traction power, farm size, seeds, and fertilizer. The mean household-level efficiency for the surveyed farmers is 0.59, indicating that farmers could improve technical efficiency. This implies that smallholder farms in Ethiopia can reduce the input requirement of producing the average output by 41% if their operations become technically efficient. This study recommends that the above policy variables be considered to make Ethiopian smallholder farmers more efficient.


Author(s):  
Carlos Otavio de Freitas ◽  
Felipe de Figueiredo Silva ◽  
Marcelo Jose Braga ◽  
Mateus de Carvalho Reis Neves

In this paper, we identify the effect of rural extension on the productive performance of Brazilian agricultural establishments, using technical efficiency as a measure of farm performance. The data used is drawn from the microdata of the 2006 Agricultural Census, accessed directly from the IBGE secrecy room. For this, we use an approach that combines the stochastic production frontier, considering selection bias in the adoption of rural extension (Heckman’s approach) and entropy balancing. We find that rural extension increases efficiency in the use of the productive inputs, with more technical efficiency found among adopting producers than non-adopters. When considering the differences according to farm size, an even greater effect is observed for larger producers. In addition, public rural extension generates higher technical efficiency scores than those obtained by privately-operated establishments.


2017 ◽  
Vol 11 (1-2) ◽  
pp. 35-43 ◽  
Author(s):  
Gideon Danso-Abbeam ◽  
Brightina A.A. Abban ◽  
Samuel A. Donkoh

The study aimed at investigating the effects of off-farm participation on technical efficiency of maize production in the Tolon district of the Northern Region, Ghana. The Logit regression model was used to analyze the determinants of off-farm participation while the stochastic frontier production function was used to model the determinants of maize output and technical efficiency. The empirical results from the logistic regression model indicate that age of farmer, educational attainment, farming experience, farm size, and previous farm income are significant drivers of farmers’ participation in off-farm activities. Farmers’ average technical efficiency level was 90.7% suggesting a 9.3% potential loss to inefficiency. Moreover, participation in off-farm activities had a negative influence on farmers’ technical efficiency level. The study, therefore, recommends that farm-level policy should be directed towards making the agricultural sector attractive by promoting investment and agricultural employment opportunities in the rural areas so as to ensure full commitment to farming activities. JEL code: Q22


2013 ◽  
Vol 2 (2) ◽  
pp. 97-108 ◽  
Author(s):  
Md. Atiqul Islam

One of the burning issues of the world is climate change. The objective of this paper is to review the issues of agricultural adaptation to climate change in the context of developing countries. Literature review type methodology is used here. Total 54 numbers of secondary materials comprising journal articles, books, working papers and documents are used for this research. It is found that Climate Change is real but highly uncertain. It poses threat to agricultural sector of developing countries and adaptation would be a possible solution. Apart from the perception of farmers other factors like the farm family characteristics (e.g. farmers’ education level, farm size, and farm’s financial health) and government support (e.g. access to extension, credit and climate information) could be the potential factors to influence adaptation. There could also be several barriers to adaptation from farmers’ perspective in the face of climate change. Lack of awareness, access to credit, information, knowledge and education to evaluate and implement new methods are the major constraint on adaptation. The appropriate science, actions and policy is required to improve the capacity and to facilitate adaptation in developing countries. JEL Classification Code: Q02; Q18


2020 ◽  
Author(s):  
Mercy Ebere Ndubueze-Ogaraku ◽  
Anil Graves

Abstract Agricultural productivity in Africa is the lowest in the world with many households not able to feed themselves. In Africa women make up 70–80% of the labour forces in the agricultural sector and play a core role in agriculture but underperform in terms of productivity largely because they lack access to physical and human resources. Well-being, a health resource is an important asset in production because people can work when they are healthy. The study is aimed to analyze farm technical efficiency of women farmers in Niger Delta, Nigeria. 216 female farmers were randomly selected from 18 communities of the three states in Niger Delta Nigeria. Stochastic production frontier function model was the analytical tools used. The result showed that farm size and labour positively influenced technical efficiency and was significant at 1% with a mean value of 68.8%. Farm efficiency level in Delta and Akwa Ibom States are not significantly different. However, technical efficiency level in both Delta and Akwa Ibom States are significantly different from Rivers State. Inefficiency variables of age and number of years spent schooling were significant at 5% and 10% level respectively. The study recommends that women should increase the use of farm plots and labour resource for higher productivity.


1973 ◽  
Vol 12 (4) ◽  
pp. 433-437
Author(s):  
Sarfaraz Khan Qureshi

In the Summer 1973 issue of the Pakistan Development Review, Mr. Mohammad Ghaffar Chaudhry [1] has dealt with two very important issues relating to the intersectoral tax equity and the intrasectoral tax equity within the agricultural sector in Pakistan. Using a simple criterion for vertical tax equity that implies that the tax rate rises with per capita income such that the ratio of revenue to income rises at the same percentage rate as per capita income, Mr. Chaudhry found that the agricultural sector is overtaxed in Pakistan. Mr. Chaudhry further found that the land tax is a regressive levy with respect to the farm size. Both findings, if valid, have important policy implications. In this note we argue that the validity of the findings on intersectoral tax equity depends on the treatment of water rate as tax rather than the price of a service provided by the Government and on the shifting assumptions regard¬ing the indirect taxes on imports and domestic production levied by the Central Government. The relevance of the findings on the intrasectoral tax burden would have been more obvious if the tax liability was related to income from land per capita.


2008 ◽  
Vol 10 (2) ◽  
Author(s):  
Ana Celia Castro ◽  
Maria Beatriz Amorim Bohrer

TRIPS as it stands is against the interests of developing countries, and needsreform. In developing their own patent law, developing countries need to recognizethat there is now near consensus among informed observers that patentlaw and practice have, in some cases, overshot, and need to be reformed. Thatis the burden of the recent NAS/NRC report on “A Patent System for the 21stCentury.


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