Stochastic modeling of production risk and technical efficiency of Thai koi (Anabas testudineus)farming in Northern Bangladesh

Thai koi is one of the high commercially valued farm fishes which have expanded tremendously in the northern part of Bangladesh. However, despite its impressive growth in the initial years, output of the industry is highly volatile across different years and farms. This research, following the Just...

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Main Authors: Sarker, Md. Al Amin, Mohamed Arshad, Fatimah, Alam, Md. Ferdous, Mohamed, Zainal Abidin, Khan, Md. Akhtaruzzaman
Format: Article
Language:English
Published: Taylor & Francis 2016
Subjects:
Online Access:http://psasir.upm.edu.my/id/eprint/53894/
http://psasir.upm.edu.my/id/eprint/53894/1/Stochastic%20modeling%20of%20production%20risk%20and%20technical%20efficiency%20of%20Thai%20koi.pdf
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author Sarker, Md. Al Amin
Mohamed Arshad, Fatimah
Alam, Md. Ferdous
Mohamed, Zainal Abidin
Khan, Md. Akhtaruzzaman
author_facet Sarker, Md. Al Amin
Mohamed Arshad, Fatimah
Alam, Md. Ferdous
Mohamed, Zainal Abidin
Khan, Md. Akhtaruzzaman
author_sort Sarker, Md. Al Amin
building UPM Institutional Repository
collection Online Access
description Thai koi is one of the high commercially valued farm fishes which have expanded tremendously in the northern part of Bangladesh. However, despite its impressive growth in the initial years, output of the industry is highly volatile across different years and farms. This research, following the Just and Pope framework, has made use of Kumbhakar’s (2002) extended stochastic frontier model (SFM) to estimate production risk and technical efficiency (TE) in Thai koi farming. Results show that feed is the most important input significantly influencing production. Zeolite and pesticide appear to be risk-reducing, while fingerlings, labor, feed and salt turn out to be risk-increasing inputs. The inefficiency model indicates that labor and pond area significantly reduce the technical inefficiency. Feed, fingerling and lime also act as TE-improving factors. Education of farmers improves TE, while experience, training and frequency of water change do not impact the TE. The mean TE scores are 0.73 and 0.96 for the flexible risk estimate and conventional SFM estimates, respectively. TE values appear to become exaggerated when production risk is excluded from the model. SFM recognizes that risk is involved in Thai koi farming that causes lower TE.
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spelling upm-538942018-02-20T09:05:28Z http://psasir.upm.edu.my/id/eprint/53894/ Stochastic modeling of production risk and technical efficiency of Thai koi (Anabas testudineus)farming in Northern Bangladesh Sarker, Md. Al Amin Mohamed Arshad, Fatimah Alam, Md. Ferdous Mohamed, Zainal Abidin Khan, Md. Akhtaruzzaman Thai koi is one of the high commercially valued farm fishes which have expanded tremendously in the northern part of Bangladesh. However, despite its impressive growth in the initial years, output of the industry is highly volatile across different years and farms. This research, following the Just and Pope framework, has made use of Kumbhakar’s (2002) extended stochastic frontier model (SFM) to estimate production risk and technical efficiency (TE) in Thai koi farming. Results show that feed is the most important input significantly influencing production. Zeolite and pesticide appear to be risk-reducing, while fingerlings, labor, feed and salt turn out to be risk-increasing inputs. The inefficiency model indicates that labor and pond area significantly reduce the technical inefficiency. Feed, fingerling and lime also act as TE-improving factors. Education of farmers improves TE, while experience, training and frequency of water change do not impact the TE. The mean TE scores are 0.73 and 0.96 for the flexible risk estimate and conventional SFM estimates, respectively. TE values appear to become exaggerated when production risk is excluded from the model. SFM recognizes that risk is involved in Thai koi farming that causes lower TE. Taylor & Francis 2016 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/53894/1/Stochastic%20modeling%20of%20production%20risk%20and%20technical%20efficiency%20of%20Thai%20koi.pdf Sarker, Md. Al Amin and Mohamed Arshad, Fatimah and Alam, Md. Ferdous and Mohamed, Zainal Abidin and Khan, Md. Akhtaruzzaman (2016) Stochastic modeling of production risk and technical efficiency of Thai koi (Anabas testudineus)farming in Northern Bangladesh. Aquaculture Economics & Management, 20 (2). pp. 165-184. ISSN 1365-7305; ESSN: 1551-8663 http://www.tandfonline.com/doi/abs/10.1080/13657305.2016.1156189?journalCode=uaqm20 Bangladesh; Production risk; Stochastic frontier model; Technical efficiency; Thai koi 10.1080/13657305.2016.1156189
spellingShingle Bangladesh; Production risk; Stochastic frontier model; Technical efficiency; Thai koi
Sarker, Md. Al Amin
Mohamed Arshad, Fatimah
Alam, Md. Ferdous
Mohamed, Zainal Abidin
Khan, Md. Akhtaruzzaman
Stochastic modeling of production risk and technical efficiency of Thai koi (Anabas testudineus)farming in Northern Bangladesh
title Stochastic modeling of production risk and technical efficiency of Thai koi (Anabas testudineus)farming in Northern Bangladesh
title_full Stochastic modeling of production risk and technical efficiency of Thai koi (Anabas testudineus)farming in Northern Bangladesh
title_fullStr Stochastic modeling of production risk and technical efficiency of Thai koi (Anabas testudineus)farming in Northern Bangladesh
title_full_unstemmed Stochastic modeling of production risk and technical efficiency of Thai koi (Anabas testudineus)farming in Northern Bangladesh
title_short Stochastic modeling of production risk and technical efficiency of Thai koi (Anabas testudineus)farming in Northern Bangladesh
title_sort stochastic modeling of production risk and technical efficiency of thai koi (anabas testudineus)farming in northern bangladesh
topic Bangladesh; Production risk; Stochastic frontier model; Technical efficiency; Thai koi
url http://psasir.upm.edu.my/id/eprint/53894/
http://psasir.upm.edu.my/id/eprint/53894/
http://psasir.upm.edu.my/id/eprint/53894/
http://psasir.upm.edu.my/id/eprint/53894/1/Stochastic%20modeling%20of%20production%20risk%20and%20technical%20efficiency%20of%20Thai%20koi.pdf