AN ANALYSIS OF AGRICULTURAL PRODUCTION IN PAKISTAN: A Study Based on the Asymmetric Role of Inputs

Naveed IQBAL*, Maqbool H. SIAL** and Adeel SALEEM***

Agricultural inputs are peculiar in nature as an asymmetry in their roles can be identified during the production process. These inputs can be grouped into a set of growth inputs or a set of facilitating inputs. The inputs affecting biological or physiological growth from the inside of the plant are called growth inputs, e.g., water, nutrients, seed and soil. The inputs that affect plant growth indirectly, such that they regulate the role of growth inputs from outer environments of plants, e.g., pesticides, capital, and labour, are facilitating inputs. This concept of asymmetry, based upon agronomic principles of crop production, is incorporated in agricultural economics by Zhengfei, Oude Lansink, van Ittersum, and Wossink (2006). This variant role of inputs is studied by using farm household-level data. In Pakistan, this study is one of the first studies that employ a double bootstrap methodology for two-stage analysis in a semiparametric way. It is reported that pesticides, family labour, and capital enhance the Technical Efficiency (TE) of growth inputs. However, hired labour affects negatively. The study also shows the effect of farm size on productivity.

Keywords: Data Envelopment Analysis, Technical Efficiency, Double Bootstrap Procedure, Damage Control, Growth Inputs, Facilitating Inputs, Farm Size-Productivity.