Role of Socio-Economic Factors on Scale Efficiency of Cotton Farms

M. S. HASHMI1, M. A. KAMRAN2, Kh. BAKHSH3 and M. A. BASHIR4
1 Department of Economics, Karakoram International University, University Road, Gilgit 15100, Pakistan
2 Nuclear Institute for Agriculture and Biology, Faisalabad, P.O. Box 128, Pinjab, Pakistan
3 COMSATS Institute of Information Technology, Pir01 Mailsi-Vehari Rd, Vehari, Campus, Pakistan
4 Department of Plant Protection, Faculty of Agricultural Sciences, Ghazi University, Dera Ghazi Khan

Abstract

HASHMI, M. S., M. A. KAMRAN, Kh. BAKHSH and M. A. BASHIR, 2016. Role of socio-economic factors on scale effi ciency of cotton farms. Bulg. J. Agric. Sci., 22: 358–367

The increasing need of food and fi bre is a big challenge around the globe especially for the researchers. The cotton is one of the important crops all over the world as well as in the study area which contribute in textile industry as well as a number of food items. In context of Pakistan, cotton contributes directly or indirectly in exports, hence, earning foreign exchange. In this regard, socio-economic factors play important role in the agricultural production and Scale Effi ciency (SE) measure is one of the most important indicators which can show the infl uences of varying range of the endowment and socio-economic factors. This piece of work contributes by estimating the SE of the cotton farms in selected study area. Moreover, it describes the infl uences of socio-economic factors on SE of cotton farms. To estimate the SE, Data Envelopment Analysis (DEA) method has been used. For the determination of infl uences of socio-economic factors, Tobit censored linear regression (parametric) and Kruskal Wallis & Bonferroni comparison tests (non-parametric) analyses have been considered. In total seven socio-economic factors; agriculture farm type, farm machinery, farm size, farmers’ age, qualifi cation, experience and working style of the farmers have been considered. It was found that farm size and farmers working style have, statistically, very signifi cant infl uences on SE of cotton farms and farmers working as part time are the most effi cient. Moreover, renters’ cotton farms are more
effi cient than owners’ farms. It was also concluded that social factors infl uence SE, statistically, insignifi cantly. However, old aged farmers are more effi cient than the young farmers, farmers having university education are more effi cient than the other levels, and most experienced farms are the most effi cient.

Key words: agricultural farms, socio-economic factors, Tobit regression analysis, data envelopment analysis, Kruskal Wallis test

See the article as a PDF.