Production structure and technical efficiency analysis of sericulture in Pakistani Punjab

Ahmad, Munir and Shami, Tanvir Khaliq (1999): Production structure and technical efficiency analysis of sericulture in Pakistani Punjab. Published in: Asia-Pacific Journal of Rural Development , Vol. IX, No. 2 (December 1999): pp. 15-31.

Abstract

The objective of this paper are to study the sericulture production structure and the analysis of farm-level technical efficiency measures. The results show that most of the farmers involved in this enterprise are illiterate. This industry is further characterised by inappropraite rearing sheds, complete lack of extension service, dependence on government forests for mulbery leaves - facing peak season shortage, supply of poor quality silkworm seed and improper processing and marketing facilities. Labour shares more than 70 percent of the total cost of production and however, promises reasonably high return on investment. Stochastic production frontier analysis indicates that the sericulture enterprise faces increasing returns to scale. Average technical efficiency is found to be 0.88 with a minimum of 0.3 and a maximum of 0.98 leaving significant scope for improvement in productivity and thus profitability. The results further show that technical efficiency is positively associated with the size of the activity.

• Item Type: MPRA Paper
• Language: English
• Keywords: sericulture production structure; farm-level technical efficiency measures; Punjab; Pakistan
• Subjects: A - General Economics and Teaching > A1 - General Economics

References

Ahmad, B. and M.J. Khan. 1993. Economics of Sericuiture in Azad Jammu and Kashmir. Pakistan Entomologist 15, No 1-2: 97-98.

Ahmad. Munir and Boris E. Bravo-Ureta. 1996. Technical efficiency Measures for Dairy Farms Using Panel Data: A Comparison of Alternative Model Specifications. The Journal of Productivity Analysis 7: 399-415.

Aigner, D., C.A.K. Lovell, and P.Schmidt. 1977. Formulation and Estimation of Stochastic Frontier production Function Models. Journal of Econometrics 6: 21-37.

Battese. G.E. and T.J. Coelli. 1993. A Stochastic Frontier Production Function Incorporating a Model for Technical Inefficiency Effects. Working Paper in Econometrics, No. 69. University of New England, Armidale.

-----. 1995. A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data. Empirical Economics 20: 325-332.

Saltese. G.E., S.J. Malik and M.A. Gill. 1996. An Investigation of Technical Inefficiencies of Production of Wheat Farmers in Four Districts of Pakistan. Journal of Agricultural Economics 47: 37-49.

Farrell, M.J. 1957. The Measurement of Productive Efficiency. Journal of Royal Statistical Society Series A 120: 253-290.

Jala-ud-Din. 1984. Problems and Prospects of Sericulture in North-West Frontier Province. Journal of Rural Development and Administration 14(3&4): 11-22.

Guo, X.J. 1985. Sericulture. The consultant Report for Sericulture. F.A.O. Project No.UTF PAK 1072/PAK 6-7.

Hanumappa, H.G. and Anatharaman. 1992. Economics of Silk Industry: Micro and Macro Issues. Bangalore (India): Institute for Social and Economic Change.

Kalirajan, K. 1981. An Economics Analysis of Yield Variability in Paddy Production. Canadian journal of agricultural Economics 29: 233-238.

Meeusen, W. and van den Broeck. 1977. Efficiency Estimation from Cobb-Douglas production Functions with Composed Error. International Economic Review 18: 435-444.

Namdar and Khan. 1989. Economics of Sericulture in Punjab. Lahore: Punjab Economic Research Institute.

Ngwenya, S.. G.E. Battese and E.M. Fleming. 1997. The Relationship Between Farm Size and Technical Efficiency of Production of Wheat farmers in Eastern Orange Free State. South Africa. Agrikon 36: 283-301.

Otsuka. K. 1982. The Transfer of Technology in Japan and Thailand: Sericulture and the Silk Industry. Development and Change 13: 421-445.

Pakistan, Govt. of. 1998. Economic Survey 1997-98. Islamabad: Finance Division Economic Advisor's Wing.

Panda, R.C. 1995. Efficiency and Productivity the Case of Sericulture Farms in Tamil Nadu India. A Paper Presented in Australian Conference on Efficiency and Productivity, University of New England. Australia.

Qureshi, S.K. and G.M. Arif. 1999. Profile of Poverty in Pakistan. A Working Paper Series in 'Micro Impact of Macro Adjustment Policies, Pakistan Institute of Development Economics, Islamabad.

Sabir, G. 1997. Sericulture Activities in Punjab. A Report Submitted to Govt. of Pakistan by the Punjab Sericulture Deptt. Lahore.

Siddique, S.K. 1988. Sericulture, Its Status and Potential in Pakistan. Progressive Farms 8(6): 5-9.

Yoshida, A. 1997. Strategy for Promoting Silk Culture, Integration (International Review of Population and Reproductive Health) No. 51: 36-41.