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Agricultural Efficiency of Rice Farmers in Myanmar: A Case Study in Selected Areas

Discussion Papers

No.306

by Nay Myo Aung
September 2011

ABSTRACT

This paper try to analyze unique data set for rice producing agricultural households in some selected areas of Bago and Yangon divisions to examine the households‟ profit efficiency and the relationship between farm and household attributes and profit inefficiency using a Cobb-Douglas production frontier function. The frequency distribution reveals that the mean technical inefficiency is 0.1627 with a minimum of 3 percent and maximum of 73 percent which indicates that, on average, about 16% of potential maximum output is lost owing to technical inefficiency in both studied areas. While 85% of the sample farms exhibit profit inefficiency of 20% or less, about 40% of the sample farms is found to exhibit technical inefficiency of 20% or less, indicating that among the sample farms technical inefficiency is much lower than profit inefficiency.

Keywords: Myanmar, rice, efficiency, production frontier function
JEL classification: D2, Q12, R3

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