The efficiency structure of rice and corn production in the Philippines: A case of Isabela province
2005
Gragasin, M.A. (Chiba Univ., Matsudo (Japan). Faculty of Horticulture) | Maruyama, A. | Kikuchi, M.
Estimating frontier production functions for rice and corn farming in Isabela, the Philippines, we examined allocative as well as technical efficiency of rice and corn farmers. We find that rice and corn farmers are both allocatively efficient. They are technically inefficient, but the degree of inefficiency, 12% for rice farmers and 18% for corn farmers, is not excessively high. Since farmers' technical inefficiency is found to be associated with the differences among farmers in such human capital as education and farming experience, it is possible to increase the productivity of rice and com production by improving farmers' technical efficiency through providing farmers with education, extension and training services. Considering the level of farmers' technical inefficiency, however, the scope to increase the productivity along with this line is not so large. Should the international competitiveness of rice and corn production in the Philippines be maintained and improved, more emphasis would have to be placed on developing new technology that enhances substantially the productivity of rice and corn farming.
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