Measuring Technical Efficiency in Potatoes Production (Case Study: Ardabil Province, Iran)

The main purpose in each micro level organization and macro level of national economic system undoubtedly is to increase the rates of economic growth through the economic and efficient utilization of resources. This would be promoted through the developed techniques and by realization of effective potentials in opportunities and defective limitations. This could guarantee economic foundations for next generations besides a high standard of living for current one. Ardebil province, producing 705 thousand tons of potatoes through 21231 hectares of planted land is the second producer of potatoes in Iran. This study estimates technical efficiency of potatoes plants in Ardabil province by using Stochastic Frontier Production Function by Maximum Likelihood. Some 216 random samples from potatoes producers in agricultural year 1387-1388 have been interviewed. First flexible function was coordinated by using cross-sectional data and Translog function was selected from these functions as the top priority. The technical efficiency for potatoes planters was calculated at 68 percent which lets us to recognize that by using the current amounts of inputs it is possible to increase products up to 32 percent on average. As a result it is advisable for farmers to use inputs more efficiently and mix them more properly so that they can reach a higher profit and post revealing advantages