Cobb-Douglas Production Function Analysis Research Articles

English

The paper analysed the profitability and resource use efficiency of boro rice cultivation in Bogra district of Bangladesh using farm level survey data of April-May, 2016. In total 103 farmers were selected randomly from the study area. Result based on Farm Budgeting model showed that per hectare variable cost and total cost of production was BDT (Bangladeshi Taka) 57,583 and BDT 71,208 respectively. Average yield was found 4.112 ton which was more than the previous year’s national average yield of 3.965 ton. The average gross return, gross margin, and net return were BDT 86,548, BDT 28,965 and BDT 15,340 respectively. Benefit-Cost ratio (BCR) was found 1.22 and 1.50 on full cost and variable cost basis. Cobb-Douglas production function analysis showed that the key production factors, that is, human labour, irrigation, insecticide, seed and fertilizer had statistically significant effect on yield. MVP and MFC ratio analysis showed that growers allocated most of their resources in the rational stage of production. Key words: Benefit-Cost ratio (BCR), Cobb-Douglas production function, elasticity and resource use efficiency.

Comparative Study on Factors Influencing Rice Yield in Niger State of Nigeria and Hainan of China

The trajectory of rice output in Nigeria has been increasing, but it has little to do with an increase in yield compared to other rice producing nations like Egypt, China, and the USA. This study provides empirical factors influencing rice yield in Niger state, a major rice producing state in Nigeria, and Hainan of China, a province sharing relatively similar crops and climate conditions, all with the intent of finding yield influential and determining to what extent any man­agement system could be inserted into the Nigerian rice system. Based on a sur­vey carried out in 2013/2014 consisting of 164 and 236 farmers from Niger state and Hainan, respectively, the study employed Cobb-Douglas production function analysis. The results indicate that yield can be further improved in both regions, especially in Niger state, when the appropriate investment on essential inputs are provided to the farmers. A lot can be learned from China’s rice subsector. Policy makers should take advantage of the existing bilateral relationship with China for transfer of information and technologies.

Study of economics of paddy cultivation under transplantation, system of rice intensification (SRI) and direct seeding in Warangal district of Andhra Pradesh

This study compares the costs and returns of paddy farms under SRI, transplantation and direct seeding methods. A pre-tested schedule was used to collect data through survey method related to the rabi season. The study was based on input-output data from 90 sample paddy farmers i.e., 30 each adopting transplantation, SRI and direct seeding methods were selected randomly in Warangal district of Andhra Pradesh. The Cobb-Douglas production function analysis indicated increasing returns to scale in SRI (∑bi =1.0821) and decreasing returns to scale for transplanted farms (∑bi =0.8734) and direct seeded farms (∑bi =0.8374) indicating that SRI was comparatively better system than transplantation and direct seeding methods. The production elasticities are negative for manures and fertilizers (−0.0036) in SRI, plant protection chemicals (−0.0060) in transplantation, and fertilizers (0.0270) in direct seeded paddy farms indicating the excess usage of these inputs.

ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI PRODUKSI USAHA KERAMBA IKAN MAS DI KECAMATAN BABIRIK KABUPATEN HULU SUNGAI UTARA

The analysis used in this experiment was is the the analysis of Cobb-Douglas production function and elasticity of production. The results obtained were F test results stating that all variable number of cages, seed, feed, and labor simultaneously significant effect on the production of carp. Based on the coefficient of determination showed that 89% variation amount of production can be explained by a variable number of cages seed, feed and labor. While 11% is influenced by other variables not included in the regression model. T test results stated that the factor of seed and feed real and significant effect on the production of carp while the number of cages and a factor of labor is not significant and not significant to the production of carp. The elasticity of the production number cages, seed, feed, and labor respectively (-0.983), (0.600) (0.221) (0.441) which means elastsitas number of cages in the region of production III and elasticity of seed, feed and energy working in the region of production II. Suggestions in this study were (1) should farmers carp determine the factors of production that significantly affect the production of carp so that farmers can see the production factors which need to be considered both quantity and quality, (2) should need counseling for farmers on the use of factors of production enterprises an efficient carp cages primarily on the number of cages in a single use of cages without reducing the use of seeds. Keywords: Goldfish, Regression Model, Elasticity Production

Sectoral Variations on Technical Efficiency and Return to Scale in the Indonesian Economy

This paper discusses on sectoral variations of technical effciency and return to scale in the Indonesian economy. Employing regression analysis of Cobb-Douglas production function, thesecoefficientswere calculated. Nine economic sectors in the Indonesian economy: Agriculture, Mining and Quarying, Manufacturing, Electricity,Gas and Drinking Water, Construction, Trade, Hotel and Restaurant, Transportation and Communication, Finance, Rental and Corporate Services, and Services, were exercised to study the variation of those coefficiens. Sectoral data on gross domestic product, capital stock and employment are those from the years 1967 to 2007 collected from many documents available at the National Statistics Agency. The result shows that the coeffiecients of technical efficiency do vary among sectors. Those sectors in which the coefficients were above that at the national level, experienced decreasing return to scale. On the contrary, those sectors in which the coeffiecients were below that at national level, experienced increasing return to scale. DOI: 10.15408/sjie.v5i2.3400

Farmers Participation in Irrigation Management and Its Influence on Production and Productivity of Rice Farming

Utilization and management of irrigation, especially in the tertiary is the duty and responsibility of farmers involved and cooperate in farmer water user associations (P3A). This is confirmed in Article 1 No. PPRI. 20 of 2006 that, the utilization and management of tertiary irrigation network would be the part of farmers and requires an organization known as farmers’ water user associations (P3A). Through such participation, farmer members of P3A may gain knowledge derived from the results of their interactions with fellow members of P3A or other parties related to irrigation activities and ultimately may affect the achievement of the production and productivity of rice farming optimal. This study intends to examine the extent to which members of P3A farmer participation in irrigation management affect the production and productivity of rice farming in each tertiary, Bila Kalola irrigation. Survey method in this study is intended to obtain the required data through questionnaires to 324 farmer members of P3A in 41 affiliated P3A, which influence the participation of farmers on production and productivity of rice farming are analyzed through simple regression analysis and analysis of Cobb-Douglas production function. The results showed that: the more active participation of farmers in irrigation management activities, the increasing of production and productivity achieved, although this hypothesis has not been fully proven in each tertiary on Bila Kalola irrigation.

Provincial food security in China: a quantitative risk assessment based on local food supply and demand trends

Understanding trends in food supply and demand are of great importance to the maintenance of China’s food security. We identified natural disasters (floods, drought, hail and frost), resource constraints, input constraints and growth of food demand as sources of risk, which could cause food insecurity. We therefore conducted an integrated three-step risk assessment, based on the Cobb-Douglas production function and scenario analysis method. The results predict that, irrespective of the total food demand and scenario, China could guarantee more than 90 % food self-sufficiency as long as the identified natural disasters occurred at no more than the historical average for the period 1986–2011. However, in a pessimistic scenario, consisting of the simultaneous occurrence of the worst natural disasters over this period, the consequent annual grain shortfall would put most provinces and cities into the medium or high risk range for food security in both 2015 and 2020. In such a scenario, the current grain stock is only sufficient to buffer China’s grain supplies for one year. In most scenarios, 10 of the 13 major grain producing provinces will have the ability to maintain their current food self-sufficiency rates over the next few years, but the food self-sufficiency rates of the more developed provinces and the largest cities will continue to decline, mainly because of the reduction in cultivated land and accelerating urbanization.

Pond Fish Farming under NGO Support and Individual Management: A Comparative Socioeconomic Study

The study was conducted to compare the profitability of fish farming under NGO support and individual management and to evaluate the overall impact of NGO intervention on farmers’ income. A total of 120 farmers (60 for own management and 60 for NGO support) were selected following random sampling technique for data collection from both Mymensingh and Tangail District. The data were collected through direct interview from the selected fish farmers. Data were analyzed with a combination of tabular and functional analysis. The BCR was 1.9 for own management and 2.4 for NGO supported pond fish farming which shows that the fish farming is more profitable under NGO support. The Ravallion test results showed that the income was increased by the amount of Tk. 32500 due to NGO’s intervention. Cobb-Douglas production function analysis was done to determine the effects of variables on pond fish production. Out of six variables, three variables in case of own management and four variables in case of NGO support had significant impact on per acre output of fish production. The results of the efficiency computation indicated that labour, feed and lime and medicine were being underutilized and fingerlings and irrigation were being over utilized for own managed pond. Under NGO supported pond, labour, fingerlings and lime and medicine were being underutilized and feed and irrigation were being over utilized. DOI: http://dx.doi.org/10.3329/agric.v12i1.19584 The Agriculturists 2014; 12(1) 75-84

Effects of agricultural credit facility on the agricultural production and rural development

Lack of capital has been identified as one of the constraints that faced by small scale farmers. The aim of this research was to examine the effect of agricultural credit on the agriculture production, and calculate the inputs and outputs among small scale farmers. Structured questionnaires were distributed to 136 farmers, who had been selected using the stratified random sampling technique, and the data obtained were summarized into percentages. Regression analysis was adopted to assess the impacts of socio-economic factors on loan size among farmers, while Cobb-Douglas Production Function Analysis (CDPFA) was used to test the relationship between key independent variables such as loan amount, farm size, inputs and farm output as dependent variable. The analysis revealed a significantly high value of coefficient of determination (R2= 0.922) that reflected a high relationship between the dependent variable and the independent variables; gender, age, education, family size, farm size, farming experience. The Adjusted (R2) coefficient (R2 = 0.918) revealed that 91.8 % of variation in loam size explained by the changes in variables. The results showed a significance in F-test in size of loan. The hypothesis two, exhibited that the independent variables; loan size, farm size, and inputs explained the variation in the total value of farmers output. The study therefore showed that to achieve the positive agricultural credit impacts on agricultural production, The Government and the private sector should regularly and timely facilitate the credit to the small scale farmers. DOI: http://dx.doi.org/10.3126/ije.v3i2.10529 International Journal of the Environment Vol.3(2) 2014: 192-204

An economic analysis of winter vegetables production in some selected areas of Narsingdi district

The present study was designed to assess the comparative profitability of selected winter vegetables: namely tomato, cauliflower and cabbage. In total, 90 farmers (30 each growing tomato, cauliflower and cabbage) were randomly selected from two villages under Shibpur Upazila in Narsingdi district. Both tabular and quantitative analyses were done to achieve the major objectives of the study. The major findings of the study revealed that production of all the selected vegetables were profitable. The per hectare gross cost of production of tomato, cauliflower and cabbage were Tk. 118000, 116977 and 120522, respectively and the corresponding gross returns were Tk. 217020, 210000 and 220000, respectively. The per hectare net returns of producing tomato, cauliflower and cabbage were Tk. 97000, 93023 and 99478, respectively. In other words, all the selected winter vegetables were highly profitable to the farmers. However, the farmers earned the highest profit from cabbage. The revenue type Cobb-Douglas production function analysis indicated that per hectare gross returns were significantly influenced by the use of human labour, tillage, seeds, fertilizers, irrigation and insecticides. These factors were directly or jointly responsible for influencing the per hectare gross returns of tomato, cauliflower and cabbage. The study reported some problems and constraints which are related to production and marketing of these vegetables. Based on the findings of the study, some recommendations were made to improve cultural and management practices for selected winter vegetables farming with a view to increase the income and employment opportunities of the farmers. DOI: http://dx.doi.org/10.3329/jbau.v9i2.11036 J. Bangladesh Agril. Univ. 9(2): 241–246, 2011

The role of agricultural cooperatives in sustaining the wheat diversity and productivity: the case of southern Italy

We hypothesize that institutions such as agricultural cooperatives influence regional levels of variety diversity through input supply, processing or marketing functions. This diversity can also affect yield, a partial measure of crop productivity. We test these hypotheses with data from southern Italy, a mega-diversity spot and centre of diversity for durum wheat. Cooperatives in the southern regions of Italy process farmers’ harvests of durum wheat into bread, label it, and sell it locally. In this relatively marginalized region of the country, cooperatives enable farmers to capture more of the value of the final product and reduce marketing costs. To test the hypothesis, we apply a two-stage estimation approach with a Cobb-Douglas production function and panel data analysis. Findings suggest that the density of cooperatives in a region is associated with greater spatial diversity in wheat varieties grown, and that, over a 14-year period, this diversity positively affected crop yields.

Resource use efficiency in cassava production in Ebonyi South Agricultural Zone of Ebonyi State, Nigeria

The study was aimed at ascertaining the efficiency of resource use in cassava production in Ebonyi South agricultural zone of Ebonyi State. A multi-stage random sampling technique was used to select sixty (60) cassava farmers for the study. A structured questionnaire as well as field observations were used to elicit the relevant information from the respondents. Data collected were analysed using descriptive statistics, relevant econometric and statistical tools, Cobb-Douglas production function and gross margin analysis. The results show that cassava production is profitable in the study area under the method of resource combination. Results also show that the resource inputs such as land, labour, capital and so on are positively related to output. On resource productivity, the Cobb-Douglas production function tested show that the combined effect of the six resource inputs brings about equal unit increase in output. Most importantly, it was recommended that the farmers need to reduce the level of labour used to get towards the point of profitable labour allocative efficiency. International Journal of Agriculture and Rural Development Vol. 7(1) 2006: 92-98

An Empirical Exploration of the Performance of Fertilizers Industry in India: An Econometric Analysis

The controversy relating to the provision of fertilizers subsidy and the recent debate over its withdrawal has necessitated the present study to examine the performance of the fertilizers industry (Inorganic Industry) in India. Analysis of Cost Functions and Cobb-Douglas Production Function have been made to study the performance of the industry, the results of which reveal that the industry is subject to the law of increasing costs. The findings get further support from the examination of the production function, which reveals that the average productivity of labour exceeds its marginal productivity. Analysis of shifting cost functions further highlight that the firms belonging to this industry expand capacities. Even before fully exploiting the existing capacity conforming to the oligopolistic behavioral tendency of the firms belonging to the fertilizers industry.

Impact of field fertility clinic on dairy production in peri urban areas of Chittagong District

The study was undertaken to compare the relative profitability of dairy farming under Field Fertility Clinic (FFC) member and non-members. A total of 130 samples were selected randomly of which 100 were members and 30 were non-members. Total cost of raising dairy cow was estimated at Tk. 142.04 and Tk. 158.21/day for member and non-member farmers. Feed cost constituted about 71.64 per cent and 69.94 per cent of total cost for member and non-member farmers respectively. Concentrate occupied the largest share out of total feed cost. In case of member, net return per day per cow was Tk. 96.02 while in the case of non-member it was Tk. 65.94. Return from per dairy cow of the members was higher by Tk. 30.08 than the non-members. The average milk yield was 6.06 liters and 5.81 liters respectively for member and non-member farmers. Cobb-Douglas production function analysis was done to determine the effects of variables inputs such as concentrate feed, paddy straw, green grass, human labour, veterinary cost and FFC intervention on milk yield. The finding showed that all of the selected variables except paddy straw had significant impact on milk yield. Key words: Field fertility clinic; Milk yield; Cobb-Douglas production function; Net return DOI: http://dx.doi.org/10.3329/bjas.v39i1-2.9694 Bang. J. Anim. Sci. 2010, 39(1&2): 183-190