An Analysis of the Technical Efficiency of Cotton Farmers in the Punjab province in Pakistan

In this paper we analyse the technical efficiency of cotton farmers in the Punjab Province in Pakistan. Technical efficiency is measured relative to a stochastic frontier production function (SFPF). The estimated model includes a function in which technical efficiency is made an explicit function of firm specific factors (involving the levels of education and experience of farmers and other factors). For the purpose of analysis, survey data was collected for the 1996-97 season. Analysis is done on a district basis and the mean technical efficiencies obtained are 76, 78, 77 and 83 per cent for the districts of Arifwala, Bahawalpur, Multan and Rahim Yar Khan respectively. This study suggests that there is considerable room for productivity gains for the farms in the sample through better use of available resources. Results indicate that the incidence of virus on cotton crop has a significant influence upon efficiency levels, while age, education, experience, extension advice, access to credit, land ownership, tractor ownership, sowing time and off-farm income activity all have little influence on efficiency levels