Contract farming and technical efficiency: evidence from low-value and high-value crops in Nepal
Contract farming (CF), an institutional innovation, can reduce transaction costs and solve market imperfections in many developing countries. This study compares productivity and technical efficiency (TE) of contract and independent producers of high yielding variety (HYV) paddy seed (a low‐value cr...
| Main Authors: | , , , |
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| Format: | Journal Article |
| Language: | Inglés |
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Wiley
2018
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| Online Access: | https://hdl.handle.net/10568/164946 |
| _version_ | 1855516340005109760 |
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| author | Mishra, Ashok K. Shaik, Saleem Khanal, Aditya R. Bairagi, Subir |
| author_browse | Bairagi, Subir Khanal, Aditya R. Mishra, Ashok K. Shaik, Saleem |
| author_facet | Mishra, Ashok K. Shaik, Saleem Khanal, Aditya R. Bairagi, Subir |
| author_sort | Mishra, Ashok K. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Contract farming (CF), an institutional innovation, can reduce transaction costs and solve market imperfections in many developing countries. This study compares productivity and technical efficiency (TE) of contract and independent producers of high yielding variety (HYV) paddy seed (a low‐value crop) and ginger (a high‐value crop) producers in a sample of smallholders in Nepal. We address the self‐selection into CF by using propensity score matching and translog stochastic frontier function to estimate our empirical model. Using farm‐level data from Nepal, our findings show that CF increased the average TE levels of HYV paddy seed producers from 87% to 94% and the average TE levels of ginger producers from 89% to 97%. Finally, we find that human capital and distance to the market increases the technical inefficiency of low‐value crop smallholders in Nepal. [EconLit citations: C21, O13, Q12]. |
| format | Journal Article |
| id | CGSpace164946 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2018 |
| publishDateRange | 2018 |
| publishDateSort | 2018 |
| publisher | Wiley |
| publisherStr | Wiley |
| record_format | dspace |
| spelling | CGSpace1649462025-02-19T14:24:29Z Contract farming and technical efficiency: evidence from low-value and high-value crops in Nepal Mishra, Ashok K. Shaik, Saleem Khanal, Aditya R. Bairagi, Subir Contract farming (CF), an institutional innovation, can reduce transaction costs and solve market imperfections in many developing countries. This study compares productivity and technical efficiency (TE) of contract and independent producers of high yielding variety (HYV) paddy seed (a low‐value crop) and ginger (a high‐value crop) producers in a sample of smallholders in Nepal. We address the self‐selection into CF by using propensity score matching and translog stochastic frontier function to estimate our empirical model. Using farm‐level data from Nepal, our findings show that CF increased the average TE levels of HYV paddy seed producers from 87% to 94% and the average TE levels of ginger producers from 89% to 97%. Finally, we find that human capital and distance to the market increases the technical inefficiency of low‐value crop smallholders in Nepal. [EconLit citations: C21, O13, Q12]. 2018-03 2024-12-19T12:54:30Z 2024-12-19T12:54:30Z Journal Article https://hdl.handle.net/10568/164946 en Wiley Mishra, Ashok K.; Shaik, Saleem; Khanal, Aditya R. and Bairagi, Subir. 2017. Contract farming and technical efficiency: evidence from low-value and high-value crops in Nepal. Agribusiness, Volume 34 no. 2 p. 426-440 |
| spellingShingle | Mishra, Ashok K. Shaik, Saleem Khanal, Aditya R. Bairagi, Subir Contract farming and technical efficiency: evidence from low-value and high-value crops in Nepal |
| title | Contract farming and technical efficiency: evidence from low-value and high-value crops in Nepal |
| title_full | Contract farming and technical efficiency: evidence from low-value and high-value crops in Nepal |
| title_fullStr | Contract farming and technical efficiency: evidence from low-value and high-value crops in Nepal |
| title_full_unstemmed | Contract farming and technical efficiency: evidence from low-value and high-value crops in Nepal |
| title_short | Contract farming and technical efficiency: evidence from low-value and high-value crops in Nepal |
| title_sort | contract farming and technical efficiency evidence from low value and high value crops in nepal |
| url | https://hdl.handle.net/10568/164946 |
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