Preprint Article Version 1 Preserved in Portico This version is not peer-reviewed

Does Efficiency Matter? A Study on Factors Affecting the Technical Efficiency of Betel Nut Producers in Assam

Version 1 : Received: 20 June 2023 / Approved: 20 June 2023 / Online: 20 June 2023 (08:26:02 CEST)

How to cite: Borah, D.; Buragohain, P.P.; Saikia, J. Does Efficiency Matter? A Study on Factors Affecting the Technical Efficiency of Betel Nut Producers in Assam. Preprints 2023, 2023061405. https://doi.org/10.20944/preprints202306.1405.v1 Borah, D.; Buragohain, P.P.; Saikia, J. Does Efficiency Matter? A Study on Factors Affecting the Technical Efficiency of Betel Nut Producers in Assam. Preprints 2023, 2023061405. https://doi.org/10.20944/preprints202306.1405.v1

Abstract

Purpose- Betel nut (Areca catechu) is one of the major plantation crops grown in Assam. However, due to inefficiency in production, the productivity of betel nuts in the state is very low. Therefore, this study attempted to measure the level of technical efficiency and the factors affecting the technical inefficiency of betel nut growers in the Nagaon district of Assam.Design/methodology/approach – Primary data were collected from 240 households in the Nagaon district of Assam. Based on the Cobb-Douglas Production function for betel nut growers, the present study uses stochastic frontier analysis to estimate the production frontier and examine the effects of exogenous variables on farm-level technical inefficiency. Findings - The findings of the study reveal that, on average, 85 per cent of betel nut growers are technically efficient in the study area. Moreover, experience in betel nut plantations and gender have a significantly negative effect on technical inefficiency. In contrast, the age of the grower had a positive and significant effect on the technical inefficiency of betel nut cultivation. The findings suggest the availability of space for an increase in the productivity of betel nut plantations in the study area and scope for increasing the level of output through technical efficiency without raising inputs.Originality/Value: This study contribute to the estimation of the technical efficiency of betel nut growers and examines the factors responsible for technical inefficiency.The dataset is original and was especially collected for the present study.

Keywords

technical efficiency; Cobb-Douglas; maximum likelihood estimation; stochastic frontier analysis; D24; Q13

Subject

Business, Economics and Management, Economics

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