Profit efficiency among cotton farmers: a Cobb-Douglass stochastic frontier production function analysis
Based on Stochastic Frontier Profit Function that assumed Cobb-Douglass specification form, a multiple regression model was estimated using a cross-sectional data obtained from a sample of 349 cotton farmers by means of a multi-stage and simple random sampling techniques. Maximum likelihood estimat...
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| Format: | Article |
| Language: | English |
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AESS Publications
2018
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| Online Access: | http://psasir.upm.edu.my/id/eprint/73657/ http://psasir.upm.edu.my/id/eprint/73657/1/Profit%20efficiency%20among%20cotton%20farmers.pdf |
| _version_ | 1848857328118398976 |
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| author | Muhammad Bala Shamsudin, Mad Nasir Radam, Alias Abd. Latif, Ismail |
| author_facet | Muhammad Bala Shamsudin, Mad Nasir Radam, Alias Abd. Latif, Ismail |
| author_sort | Muhammad Bala |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Based on Stochastic Frontier Profit Function that assumed Cobb-Douglass specification form, a multiple regression model was estimated using a cross-sectional data obtained from a sample of 349 cotton farmers by means of a multi-stage and simple random sampling techniques. Maximum likelihood estimates of the specified profit model explained that profit efficiency of the producers varied between 67.1% and 98.1% with mean 91.3% implying that an estimated 18.7% of the profit is lost due to a combination of technical and allocative inefficiencies in cotton farming production. In addition, results from the technical inefficiency model showed that age, education, farming experience, credit access, extension visit and marital status were significant factors influencing profit inefficiency, revealing that profit inefficiency in cotton production could be shortened significantly with improvement in the level of the aforementioned socio-economics characteristics of the sampled farmers. The overtone of these results is that, it would give more insight to policy makers for further improvements in productivity by given more emphasis to exploiting the technical efficiency ‘gap’ through adaptive research, farmer education and improved input supply. |
| first_indexed | 2025-11-15T11:55:48Z |
| format | Article |
| id | upm-73657 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T11:55:48Z |
| publishDate | 2018 |
| publisher | AESS Publications |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-736572022-03-02T09:22:11Z http://psasir.upm.edu.my/id/eprint/73657/ Profit efficiency among cotton farmers: a Cobb-Douglass stochastic frontier production function analysis Muhammad Bala Shamsudin, Mad Nasir Radam, Alias Abd. Latif, Ismail Based on Stochastic Frontier Profit Function that assumed Cobb-Douglass specification form, a multiple regression model was estimated using a cross-sectional data obtained from a sample of 349 cotton farmers by means of a multi-stage and simple random sampling techniques. Maximum likelihood estimates of the specified profit model explained that profit efficiency of the producers varied between 67.1% and 98.1% with mean 91.3% implying that an estimated 18.7% of the profit is lost due to a combination of technical and allocative inefficiencies in cotton farming production. In addition, results from the technical inefficiency model showed that age, education, farming experience, credit access, extension visit and marital status were significant factors influencing profit inefficiency, revealing that profit inefficiency in cotton production could be shortened significantly with improvement in the level of the aforementioned socio-economics characteristics of the sampled farmers. The overtone of these results is that, it would give more insight to policy makers for further improvements in productivity by given more emphasis to exploiting the technical efficiency ‘gap’ through adaptive research, farmer education and improved input supply. AESS Publications 2018 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/73657/1/Profit%20efficiency%20among%20cotton%20farmers.pdf Muhammad Bala and Shamsudin, Mad Nasir and Radam, Alias and Abd. Latif, Ismail (2018) Profit efficiency among cotton farmers: a Cobb-Douglass stochastic frontier production function analysis. Journal of Asian Scientific Research, 8 (7). 237 - 246. ISSN 2226-5724; ESSN: 2223-1331 https://archive.aessweb.com/index.php/5003/article/view/3891 10.18488/journal.2.2018.87.237.246 |
| spellingShingle | Muhammad Bala Shamsudin, Mad Nasir Radam, Alias Abd. Latif, Ismail Profit efficiency among cotton farmers: a Cobb-Douglass stochastic frontier production function analysis |
| title | Profit efficiency among cotton farmers: a Cobb-Douglass stochastic frontier production function analysis |
| title_full | Profit efficiency among cotton farmers: a Cobb-Douglass stochastic frontier production function analysis |
| title_fullStr | Profit efficiency among cotton farmers: a Cobb-Douglass stochastic frontier production function analysis |
| title_full_unstemmed | Profit efficiency among cotton farmers: a Cobb-Douglass stochastic frontier production function analysis |
| title_short | Profit efficiency among cotton farmers: a Cobb-Douglass stochastic frontier production function analysis |
| title_sort | profit efficiency among cotton farmers: a cobb-douglass stochastic frontier production function analysis |
| url | http://psasir.upm.edu.my/id/eprint/73657/ http://psasir.upm.edu.my/id/eprint/73657/ http://psasir.upm.edu.my/id/eprint/73657/ http://psasir.upm.edu.my/id/eprint/73657/1/Profit%20efficiency%20among%20cotton%20farmers.pdf |