Advances in Management and Applied Economics

Estimating Technical Efficiency of IRRI Rice Production in the Northern Parts of Bangladesh

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  • Abstract

    Using stochastic frontier function, this paper estimates the technical efficiencies of the IRRI (International Rice Research Institute) rice production in three village farms of the northern part (Natore) of Bangladesh and determines the significant factors underlying their technical efficiency. The paper finds that the mean technical efficiency for IRRI rice cultivation is 85.2 percent. The farm level technical efficiency ranges between 16.5 percent and 94.5 percent. Twenty five percent of the farms for IRRI cultivation have technical efficiencies above 70 percent. Secondary school education (SS), years of cultivation experience, and use of fertilizers are positively and significantly related to technical efficiency.