Please use this identifier to cite or link to this item: https://une.intersearch.com.au/unejspui/handle/1959.11/281
Title: Technical Inefficiency and Production Risk in Rice Farming: Evidence from Central Luzon Philippines
Contributor(s): Villano, R (author); Fleming, Euan (author)
Publication Date: 2006
DOI: 10.1111/j.1467-8381.2006.00223.x
Handle Link: https://hdl.handle.net/1959.11/281
Abstract: There have been many previous studies of technical inefficiency in rice production in the Philippines, but none has focused simultaneously on production risk and technical inefficiency at the farm level. Rice production is inherently risky because of the heterogeneous production environment. In this study, we analyze technical inefficiency in a rainfed lowland rice environment in Central Luzon using a stochastic frontier production function with a heteroskedastic error structure. An 8-year panel dataset collected from 46 rainfed rice farmers was used to estimate flexible functional specifications. Over the whole period, the average technical efficiency was found to be 79 percent. Results indicate that there is a high degree of variability in technical efficiency estimates, which can be attributed to the instability of farming conditions in the rainfed lowland environment. Mean output was significantly influenced by area planted to rice, labor and the amount of fertilizer used. Consequently, these inputs were found to be risk-increasing, whereas herbicide was found to be a risk-reducing input.
Publication Type: Journal Article
Source of Publication: Asian Economic Journal, 20(1), p. 29-46
Publisher: Blackwell Publishing Asia
Place of Publication: Melbourne
ISSN: 1351-3958
Field of Research (FOR): 140201 Agricultural Economics
Peer Reviewed: Yes
HERDC Category Description: C1 Refereed Article in a Scholarly Journal
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