Abstract
The present study applies a bootstrapped data envelopment analysis (DEA) procedure to compute bias-corrected measures of agricultural total factor productivity (TFP) change and its components (technical change and technical efficiency change) using a panel data of 19 regions of Bangladesh covering a 23-year period (1987–2009), thereby overcoming the limitation of the lack of statistical inference of the conventional non-parametric DEA. Results revealed that overall productivity grew at a modest rate of 0.03%, mainly powered by technological progress at 0.03% and a negligible decline in technical efficiency at 0.004% with large disparities amongst regions. Six regions in the middle order shifted ranks with regard to TFP change following bias correction. The estimated confidence intervals demonstrated that many regions underwent either progress or regress in productivity performance over time. Investments in research and development (R&D), agricultural extension, and crop diversification are suggested to improve regional inequality and declining technical efficiency.
Highlights
Agriculture is one of the most important economic sectors in Bangladesh, as it contributes 14.23%to the country’s GDP (BER 2018) and employs 41% of the labor force (BBS 2018)
The level of technological change for most of the regions increased, which indicates that the technology has improved in agricultural practices in Bangladesh
The productivity of Bangladesh agriculture grew at a rate of 0.03% p.a., powered mainly by technological progress which is estimated at the same rate of 0.03% p.a
Summary
Agriculture is one of the most important economic sectors in Bangladesh, as it contributes 14.23%to the country’s GDP (BER 2018) and employs 41% of the labor force (BBS 2018). Bangladesh is one of the most densely populated nations of the world (964 persons per Km2 ) with an estimated population of 142.3million, of which 75% live in rural areas (BBS 2010). Bangladesh has designed and implemented various agricultural policies for quick transformation of the agricultural sector through rapid technological progress aimed at alleviating poverty and raising the standard of living of its increasing population (Rahman 2003). The diffusion of HYV technology went through various cycles, picking up during its inception stage (i.e., 1970s), slowing during the early 1980s, picking up again from the late 1980s in response to policy reforms aimed at liberalization of the procurement and distribution of agricultural inputs and a reduction of import duties on agricultural equipment (Hossain and Akash 1994). Irrigation coverage, which is a major pre-requisite for the expansion of HYV rice technology, increased dramatically to 51.5% of gross cropped area in
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