Productivity growth and efficiency changes in prawn-carp–rice farming in ‘Gher’ system in Bangladesh: A Färe-Primont index approach

Abstract

‘Gher’ farming system refers to the joint operation of three enterprises: freshwater prawn, carp and HYV rice practiced widely in the southwestern coastal Bangladesh. The paper estimates growth in total factor productivity (TFP) and its six finer components (technical change, technical, scale and mix efficiency changes, residual-scale and residual-mix efficiency changes) of the prawn-carp-rice joint culture and identifies their determinants by exploring a panel database of a cohort of 90 ‘gher’ farms over a 13-year timespan (2002–14) from southwest Bangladesh. The aim is to judge sustainability of this unique farming system. Results revealed that TFP grew @ 0.86% p.a. mainly powered by technical change @ 0.54% p.a. and mix-efficiency change @0.06% p.a. while technical and scale efficiency changes declined @ 0.17% and 0.10% p.a., respectively. Farm-level socio-economic factors exerted differential impacts on TFP growth and its components. The key conclusion is that the ‘prawn-carp-rice’ joint culture in ‘gher’ system is sustainable and has the potential to support growth of the broader agricultural sector and the Bangladesh economy. Experience and education, ‘gher’ area, share of family labour and tenancy significantly improved TFP growth and technical change. The policy interventions include additional funds in education for ‘gher’ farmers, land and tenurial reforms to consolidate operation size and training for female labourers to improve long-term growth of the ‘prawn-carp-rice’ joint farming.