Technical Efficiency of Cotton Production in Pakistan: A Comparative Study on Non BT and BT-Cotton Farms
Technical Efficiency of Cotton Production in Pakistan: A Comparative Study on Non BT and BT-Cotton Farms
Hina Fatima, Muhammad Azeem Khan, Mahreen Zaid-Ullah, Abdul-Jabbar, Khurram Nawaz Saddozai
ABSTRACT
This study has estimated the technical efficiency of Non-BT cotton and BT cotton production in Pakistan. Those farmers were selected as the respondents for the study that used to cultivate Non-BT cotton and BT cotton varieties. In Pakistan, the NonBT cotton varieties have been promptly substituted with the BT-cotton varieties. This substitution of imported BT-cotton seed is taking into account without considering the local environmental conditions of Pakistan. Thus the main objective of the research was on the comparative efficiency and the productivity analysis of BT- Cotton varieties with those of the conventional non-BT-Cotton varieties. The population of this research covers the area of Rahim Yar Khan of Pakistan. Two hundred and fifteen farms were selected from each of the NonBT-cotton farms and BT-cotton farms. The Cobb- Douglas Stochastic Frontier Analysis (SFA) has been employed to determine the technical efficiency of these growers. Technical efficiency has been found dissimilar under both the situations. The estimated mean technical efficiency of NonBT cotton farmers has been found to be 0.70, and 0.90 is the technical efficiency found in that of the BT cotton farmers. Hence the average output of Non-BT cotton and BT-cotton farms could be increased by 30 and 10 percent, respectively by adopting the technology with an appropriate approach. The results of the inefficiency model reveal that the factors like education, experience and distance from the main market, are the most influential determinants of the technical efficiency in both NonBT and BT- cotton farms. Extension of cotton production required the development of cottonseed that will be suitable for environmental conditions of Pakistan.
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