Measuring technical efficiency differentials of cotton farmers in Pakistan

Abstract

This thesis examines the technical efficiency differentials of production of cotton farmers in the two provinces, Sind and Punjab, of Pakistan. Both parametric and semi-parametric stochastic frontier models were u.sed to inve.stigate the relationships that might exist between the farm size, the educational background, the ownership status and farmers' efficiency. The results of both of the models show that farm size plays an important role in measuring the efficiency of farmers. Increasing farm size in Punjab decreases inefficiency whereas farms should be smaller in Sind to be more effective. Education was found to decrease inefficiency in Punjab whereas it is counterproductive in Sind. Owneroperated farms of Punjab are more efficient. The results of this thesis warrants need for major structural reforms in order to increase productivity in the agriculture sector of Pakistan.