Journal of Statistics Applications & Probability
Application of Stochastic Frontier Production Function on Small Banana Growers of Kushtia District in Bangladesh
Agricultural productivity varies due to differences in production technology, differences in the setting in which production occurs and differences in the efficiency of the production process. Efficiency measurement has been the concern of researches with an aim to investigate the efficiency levels of farmers engaged in agricultural activities. Identifying determinants of efficiency levels is a major task in efficiency analysis. Moreover, estimates on the extent and sources of inefficiencies could help improve the efficiency or develop new technology to raise the banana productivity. Thus the main objective of this paper is to estimate the efficiency of the small banana grower in Kushtia district of Bangladesh. In this study, econometric frontier models were estimated under the specification of the Cobb-Doulas production function model. Primary data for this study were collected by the use of well structured questionnaire. Among the elasticities, the elasticity for land used for banana production is the largest (0.3498). The second largest elasticity is cost on fertilizer which is 0.2417 and the elasticity for the cost on labor is lowest (0.0495). From the results of the study, it is revealed that age and education level of the farmers has a positive effect on technical efficiency. This paper recommend that the Government should take an effective step to control the price system and price spread of the market and make sure that the producers can get their reasonable price and also the consumer can also get the product in a reasonable price. Government also should take necessary steps to improve the knowledge of a farmer to the modern cultivation technique and encouraged them to adopt the new technology to increase the production.
Ashraful Alam, Md.; Kamal Uddin, Md.; and Moyazzem Hossain, Md.
"Application of Stochastic Frontier Production Function on Small Banana Growers of Kushtia District in Bangladesh,"
Journal of Statistics Applications & Probability: Vol. 4:
2, Article 18.
Available at: https://digitalcommons.aaru.edu.jo/jsap/vol4/iss2/18