Sanzidur Rahman

Farm productivity and efficiency in rural Bangladesh: the role of education revisited.

This article reassesses the debate over the role of education in farm production in Bangladesh using a large dataset on rice producing households from 141 villages. Average and stochastic production frontier functions are estimated to ascertain the effect of education on productivity and efficiency. A full set of proxies for farm education stock variables are incorporated to investigate the ‘internal’ as well as ‘external’ returns to education. The external effect is investigated in the context of rural neighbourhoods. Our analysis reveals that in addition to raising rice productivity and boosting potential output, household education significantly reduces production inefficiencies. However, we are unable to find any evidence of the externality benefit of schooling – neighbours education does not matter in farm production. We discuss the implication of these findings for rural education programmes in Bangladesh.

Farm-level pesticide use in Bangladesh: determinants and awareness ☆

Abstract Farmers’ awareness of beneficial and harmful effects of pesticides and factors determining use of pesticides were analyzed using survey data from 21 villages in three agro-ecological regions of Bangladesh. Pesticide cost accounts for about 7.7% of the gross value of output in cotton, 3.6% in vegetables, 2.5% in potato, 1.8% in modern rice, 1.6% in spices and less than 1% in other cereal and non-cereal crops. About 77% of farmers (highest 94% in Comilla) used pesticides at least once (37% applied once and 31% applied twice, and the rest applied for 3–5 times) in a crop season. Cultivation of traditional and modern rice varieties, potatoes, spices, vegetables and cotton are the prime determinants of pesticide use. Farmers seem to treat pesticides as substitutes for fertilizers, indicated by the positive influence of fertilizer prices on pesticide use. Also, increases in pulse and jute prices increase pesticide use. Among the socio-economic variables, land ownership and agricultural credit are positively related to pesticide usage. Pesticide use is higher in underdeveloped regions. Sharp regional variations also exist in pesticide usage. Major policy thrusts for devising pesticide regulation and effective implementation, increasing farmers’ awareness of the effects of pesticide use, and expansion of IPM practices are suggested to safeguard poor farmers in their pursuit of agricultural livelihoods.

Six Decades of Total Factor Productivity Change and Sources of Growth in Bangladesh Agriculture (1948–2008)

This study applies the Fare–Primont index to calculate total factor productivity (TFP) indices for agriculture in 17 regions of Bangladesh covering a 61-year period (1948–2008). It decomposes the TFP index into six finer components (technical change, technical-, scale- and mix-efficiency changes, residual scale- and residual mix-efficiency changes). Results reveal that TFP grew at an average rate of 0.57% p.a. led by the Chittagong, Rajshahi, Rangpur, Dinajpur and Noakhali regions. TFP growth is largely powered by technological progress estimated at 0.74% p.a. Technical efficiency improvement is negligible (0.01% p.a.) due to stagnant efficiency in most of the regions. Decline in scale efficiency is also negligible (0.01% p.a.), but the decline in mix efficiency is high at 0.19% p.a. Decomposition of the components of TFP changes into finer measures of efficiency corrects the existing literature’s blame of a decline in technical efficiency as the main cause of poor TFP growth in Bangladesh. Among the sources, farm size, R&D investment, extension expenditure and crop specialisation positively influenced TFP growth, whereas the literacy rate had a negative influence on growth. Policy implications include encouraging investment in R&D and extension, land reform measures to increase average farm size, promotion of Green Revolution technology and crop diversification.

Impact of technological change on income distribution and poverty in Bangladesh agriculture: an empirical analysis

This paper examines the impact of technological change and/or ‘Green Revolution’ on income distribution and poverty in Bangladesh agriculture. Results suggest that the major beneficiaries of this technological change are the land and resource owners. Among the income determinants, modern technology, soil fertility, farm size, number of working members, and farm capital significantly increase crop and agricultural income, while developed infrastructure significantly increases non-agricultural income. Production of modern varieties of rice and wheat alone contributes 29 percent to total existing income inequality and reaches as high as 35 percent in ‘high adopter’ villages, thereby, indicating its unexpected adversity on income distribution and is also accompanied by highest (63 percent) number of population below poverty line. Estimates of Gini-coefficient, Sen index, Kakwani index, and FGT distributionally sensitive measure, consistently revealed that incidence of poverty is lowest in ‘medium adopter’ villages implying that high level of modern technology diffusion alone may not be the key to agricultural development and economic growth. Rather, a diversified cropping system including balanced level of modern technology adoption, a distinguishing feature of the ‘medium adopter’ villages, yields higher income and enjoys least inequality and poverty. Therefore, an integrated policy of decentralised crop diversification incorporating balanced level of modern technology adoption, soil fertility management, and rural infrastructure development to promote economic diversification is suggested. KEY WORD: Technological change in agriculture, income distribution, poverty, Bangladesh.

Women's employment in Bangladesh agriculture: Composition, determinants and scope

Abstract Gender composition of labour use and factors determining demand and supply of female labour in crop production is examined using survey data from 14 villages in two agro-ecological regions of Bangladesh. The share of women in labour use ranges between 11–18% in foodgrain (rice and wheat) and 14–48% in non-cereal (highest for vegetables) production. Incidence of female labour hire is very low and varies directly with land size classes while supply from family varies inversely. Cultivation of diverse crops (local and modern varieties of rice, jute, oilseeds and vegetables), education as well as womens ownership of land increases demand for hired female labour. On the other hand, membership in non-governmental organisation and womens ownership of land decreases supply of female labour from the family. Also, sharp regional variation exists in hiring female labour. A decentralised crop diversification policy, gender sensitive educational program as well as institutional arrangement to increase womens access to land would promote womens gainful employment.

Diversification economies and efficiencies in a 'blue-green revolution' combination: A case study of prawn-carp-rice farming in the 'gher' system in Bangladesh

Abstract‘Gher’ farming is a unique system that incorporates the joint operation of three enterprises: freshwater prawn, fish and HYV rice and is expanding rapidly in the coastal regions of Bangladesh. In this paper we evaluate the performance of this unique system in terms of the existence of diversification economies (amongst the three integrated enterprises), scale economies and technical efficiency using a stochastic input distance function approach on a sample of gher farmers. The results reveal evidence of a diversification economy in the rice–carp combination. Economies of scale exist in the ‘gher’ farming system. The level of technical efficiency is estimated at 68% implying that a substantial 47% [(100−68)/68] of potential output can be recovered by removing inefficiency. Significant efficiency gains are made from diversification amongst these enterprises. Also, the education of farmers and the female labour input significantly improve efficiency whilst larger operation size reduces efficiency. The key policy implication is that the diversification of enterprises, particularly the rice–carp combination, is beneficial and should be promoted. Also investment in education and creation of a hired labour market for females would improve technical efficiency.

Regional productivity and convergence in Bangladesh agriculture

This paper applies the sequential Malmquist index to calculate multi-lateral, multi-factor productivity (MFP) indices for agriculture in 16 regions of Bangladesh from 1964 to 1992 and examines convergence amongst regions. Productivity grew at an average rate of 0.9% per annum, led by regions with high level of Green Revolution technology diffusion. The growth mainly occurred due to technological progress estimated at 1.9% per year. Overall technical efficiency declined steadily at 1.0% per year due to falling efficiency in most of the regions in later years. Both cross-section and time-series tests confirm that divergence among regions disappeared and agricultural productivity reached convergence in the long-run. Policy options to reverse declining efficiency are considered. These include: strengthening of extension services, improvements in rural infrastructure, widening of R&D activities to non-cereals, and promotion of new technologies.

Measuring environmental sustainability in agriculture: A composite environmental impact index approach

The present study develops a composite environmental impact index (CEII) to evaluate the extent of environmental degradation in agriculture after successfully validating its flexibility, applicability and relevance as a tool. The CEII tool is then applied to empirically measure the extent of environmental impacts of High Yield Variety (HYV) rice cultivation in three districts of north-western Bangladesh for a single crop year (October, 2012-September, 2013). Results reveal that 27 to 69 per cent of the theoretical maximum level of environmental damage is created due to HYV rice cultivation with significant regional variations in the CEII scores, implying that policy interventions are required in environmentally critical areas in order to sustain agriculture in Bangladesh.

Determinants of Livelihood Choices An Empirical Analysis from Rural Bangladesh

The study identifies socio-economic determinants of livelihood choices of rural households in Bangladesh (4,195 households from 139 villages) by applying a multinomial logit model of occupational choice and a multivariate Tobit model that allows for jointness in decision making. Results reveal that households choose multiple livelihood options. A number of socio-economic factors and resources at the household level as well as the state of rural infrastructure significantly determine households’ livelihood choice. Overall, resource-rich and educated households engage in diversified livelihoods and rural infrastructure promotes such diversification. Female-headed households fail to participate in any of the livelihood categories and consequently earn significantly lower income. Policy implications include investment in rural infrastructure, irrigation, rural electrification, education, livestock resources, as well as targeting of female-headed households, for example, creation of a hired labour market and skills/education programmes for females.

Resource Use Efficiency Under Self-Selectivity: The Case of Bangladeshi Rice Producers

The paper jointly evaluates the determinants of switching to modern rice and its productivity while allowing for production inefficiency at the level of individual producers. Model diagnostics reveal that serious selection bias exists, justifying the use of a sample selection framework in stochastic frontier models. Results revealed that modern variety selection decisions are influenced positively by the availability of irrigation and gross return from rice and negatively by a rise in the relative wage of labour. Adoption of modern rice is higher in underdeveloped regions. Seasonality and geography/ location does matter in adoption decisions. Stochastic production frontier results reveal that land, labour and irrigation are the significant determinants of modern rice productivity. Decreasing returns to scale prevail in modern rice production. The mean level of technical efficiency (MTE) is estimated at 0.82. Results also demonstrate that the conventional stochastic frontier model significantly overestimates inefficiency by three points (MTE = 0.79). Policy implications include measures to increase access to irrigation, tenurial reform and keeping rice prices high to boost farm returns and offset the impact of a rise in the labour wage which will synergistically increase the adoption of modern rice as well as farm productivity.