AN INVESTIGATION OF TECHNICAL INEFFICIENCIES OF PRODUCTION OF WHEAT FARMERS IN 4 DISTRICTS OF PAKISTAN

A new, single stage model for estimating technical inefficiencies of p roduction in a stochastic frontier production function is applied in t he analysis of panel data on wheat farmers in selected districts of Pa kistan. The technical inefficiency effects are highly significant, imp lying that the traditional production function model is inadequate the analysis of wheat production of the four districts involved. In distr ict of Faisalabad, for example, technical inefficiencies of production tend to be smaller for older farmers and those with greater formal sc hooling. In addition, the levels of wheat production for farmers in Fa isalabad tend to approach their potential frontier production levels o ver time, although there is no evidence of technical change. The techn ical efficiencies of the wheat farmers show considerable variation ove r time within each district, such that the mean technical efficiencies range from 57 per cent to 79 per cent in the four districts.