Resource-use and allocative efficiency of paddy rice production in MADA, Malaysia

The study examined resource-use and allocative efficiency of paddy rice production in the MADA, Malaysia. A total sampling size of 396 rice farmers were selected using a multistage random sampling through a well-structured questionnaire. The independent samples F-tests, Ordinary Least Square analyse...

Full description

Bibliographic Details
Main Authors: Adedoyin, Abiola Olapeju, Shamsudin, Mad Nasir, Radam, Alias, Abd. Latif, Ismail
Format: Article
Language:English
Published: International Institute for Science, Technology & Education 2016
Online Access:http://psasir.upm.edu.my/id/eprint/56458/
http://psasir.upm.edu.my/id/eprint/56458/1/Resource-use%20and%20allocative%20efficiency%20of%20paddy%20rice%20production%20in%20MADA%2C%20Malaysia.pdf
_version_ 1848853088687882240
author Adedoyin, Abiola Olapeju
Shamsudin, Mad Nasir
Radam, Alias
Abd. Latif, Ismail
author_facet Adedoyin, Abiola Olapeju
Shamsudin, Mad Nasir
Radam, Alias
Abd. Latif, Ismail
author_sort Adedoyin, Abiola Olapeju
building UPM Institutional Repository
collection Online Access
description The study examined resource-use and allocative efficiency of paddy rice production in the MADA, Malaysia. A total sampling size of 396 rice farmers were selected using a multistage random sampling through a well-structured questionnaire. The independent samples F-tests, Ordinary Least Square analyses techniques, descriptive statistics, Gross margin analysis and Cobb-Douglas production function analysis that combines the conventional neoclassical test of economic and technical efficiencies was employed in the study. Findings revealed that all inputs used were positively significant. Rice production was found to be profitable as farmers realized RM2,054.03 per ha as Gross Margin in the study area. Result of the allocative efficiency of inputs confirmed that rice producers in the area did not attain optimal allocative efficiency, seed input (0.29) had the highest allocative efficiency while fertilizer input (0.06) showed the least allocative efficient input. The findings of the study emphasized the need to improve farm efficiency at all levels. It is therefore, recommend that the rice farmers be encouraged to use their inputs up to the point the values of the marginal products (MVPs) equates their factor prices (i.e. MVPs = PXs).
first_indexed 2025-11-15T10:48:25Z
format Article
id upm-56458
institution Universiti Putra Malaysia
institution_category Local University
language English
last_indexed 2025-11-15T10:48:25Z
publishDate 2016
publisher International Institute for Science, Technology & Education
recordtype eprints
repository_type Digital Repository
spelling upm-564582017-07-31T09:52:34Z http://psasir.upm.edu.my/id/eprint/56458/ Resource-use and allocative efficiency of paddy rice production in MADA, Malaysia Adedoyin, Abiola Olapeju Shamsudin, Mad Nasir Radam, Alias Abd. Latif, Ismail The study examined resource-use and allocative efficiency of paddy rice production in the MADA, Malaysia. A total sampling size of 396 rice farmers were selected using a multistage random sampling through a well-structured questionnaire. The independent samples F-tests, Ordinary Least Square analyses techniques, descriptive statistics, Gross margin analysis and Cobb-Douglas production function analysis that combines the conventional neoclassical test of economic and technical efficiencies was employed in the study. Findings revealed that all inputs used were positively significant. Rice production was found to be profitable as farmers realized RM2,054.03 per ha as Gross Margin in the study area. Result of the allocative efficiency of inputs confirmed that rice producers in the area did not attain optimal allocative efficiency, seed input (0.29) had the highest allocative efficiency while fertilizer input (0.06) showed the least allocative efficient input. The findings of the study emphasized the need to improve farm efficiency at all levels. It is therefore, recommend that the rice farmers be encouraged to use their inputs up to the point the values of the marginal products (MVPs) equates their factor prices (i.e. MVPs = PXs). International Institute for Science, Technology & Education 2016 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/56458/1/Resource-use%20and%20allocative%20efficiency%20of%20paddy%20rice%20production%20in%20MADA%2C%20Malaysia.pdf Adedoyin, Abiola Olapeju and Shamsudin, Mad Nasir and Radam, Alias and Abd. Latif, Ismail (2016) Resource-use and allocative efficiency of paddy rice production in MADA, Malaysia. Journal of Economics and Sustainable Development, 7 (1). pp. 49-55. ISSN 2222-1700; ESSN: 2222-2855 http://iiste.org/Journals/index.php/JEDS/article/view/28178
spellingShingle Adedoyin, Abiola Olapeju
Shamsudin, Mad Nasir
Radam, Alias
Abd. Latif, Ismail
Resource-use and allocative efficiency of paddy rice production in MADA, Malaysia
title Resource-use and allocative efficiency of paddy rice production in MADA, Malaysia
title_full Resource-use and allocative efficiency of paddy rice production in MADA, Malaysia
title_fullStr Resource-use and allocative efficiency of paddy rice production in MADA, Malaysia
title_full_unstemmed Resource-use and allocative efficiency of paddy rice production in MADA, Malaysia
title_short Resource-use and allocative efficiency of paddy rice production in MADA, Malaysia
title_sort resource-use and allocative efficiency of paddy rice production in mada, malaysia
url http://psasir.upm.edu.my/id/eprint/56458/
http://psasir.upm.edu.my/id/eprint/56458/
http://psasir.upm.edu.my/id/eprint/56458/1/Resource-use%20and%20allocative%20efficiency%20of%20paddy%20rice%20production%20in%20MADA%2C%20Malaysia.pdf