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Factors influencing adoption, productivity and efficiency of hybrid rice in Bangladesh

Azad, MAS ORCID: 0000-0003-4998-420X and Rahman, S 2017 , 'Factors influencing adoption, productivity and efficiency of hybrid rice in Bangladesh' , Journal of Developing Areas, vol. 51, no. 1 , pp. 223-240 , doi: 10.1353/jda.2017.0013.

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Abstract

Development and dissemination of hybrid rice technology can be one of the key strategies to meetgrowing demand for staple food in Bangladesh. A number of initiatives for hybrid rice researchand development have been undertaken for the last couple of decades, but the adoption rate ofhybrid rice is not encouraging. In recent years, although some studies have investigated theunderlying socio-economic factors of hybrid rice adoption, research on estimating productionefficiency of hybrid rice is relatively few. In addition, there is a bias in sample selection inherent inmost of the technology adoption studies because rational farmers will always choose betweenhybrid and inbred rice depending on a host of price and non-price factors. Furthermore, theproduction function that uses observations from a single variety only may produce biasedestimates of production efficiency. Given this backdrop, this paper adopted the recently developedmethod that corrects for sample selection bias in a stochastic frontier framework andsimultaneously identifies the determinants of hybrid rice adoption and its farm-levelproductivity and efficiency while relaxing the assumption of perfect efficiency of the individualproducers. A survey was conducted to collect primary data on inputs and outputs of hybrid andinbred rice production. Some key information on the socio-economic characteristics of thesample farmers was also collected. Using pre-tested structured questionnaire, a total of 336 and180 rice farmers were selected and interviewed at six districts of Bangladesh for the crop year2004 and 2005, respectively. Model diagnostics reveal that serious selection bias exists,justifying use of our sample selection approach. The results reveal that the producer’s decision tochoose hybrid rice is positively influenced by gross return per unit of land but negatively affectedby a rise in relative prices of labour and phosphate fertilizer. Adoption of hybrid rice issignificantly higher for pesticide and organic manure users. Land, irrigation and mechanical powerare the significant determinants of hybrid rice productivity. Productivity of hybrid rice variesacross regions. The mean technical efficiency of the hybrid rice producers is estimated at 0.86 witha range of 0.55 to 0.97, implying substantial scope to improve production by eliminatinginefficiency. Policy implications include price policies to improve hybrid rice price, tenurialreform aimed at consolidating farm size and smooth operation of the mechanical power servicesand investment in irrigation to expand hybrid rice adoption and productivity in Bangladesh.

Item Type: Article
Authors/Creators:Azad, MAS and Rahman, S
Keywords: sample selection framework, stochastic production frontier, hybrid rice, adoption, production efficiency
Journal or Publication Title: Journal of Developing Areas
Publisher: Journal of Developing Areas
ISSN: 0022-037X
DOI / ID Number: 10.1353/jda.2017.0013
Copyright Information:

Copyright © 2017 The Journal of Developing Areas (TSU)

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