Technical Efficiency and Its Determinants in Wheat Production: Evidence from Punjab, Pakistan

Abstract

The purpose of the current study was to assess the allocative, technical, and economic efficiency of wheat crop produced in Punjab. Primary data were collected through a well-structured questionnaire. The economic efficiencies were estimated by the DEA technique using the farm level data gathered from 240 wheat growers of the Rajanpur district of Punjab, Pakistan. According to the results of the study the estimated efficiencies results show that the mean technical efficiency of the wheat crop is about 70%, the mean allocative efficiency is 74%, and the mean cost efficiency is 52%. The findings revealed that Pakistani wheat farms could minimize production costs by up to 30% to ensure the same level of production, using resources in optimal proportions and increasing technical efficiency. The findings also reveal that the current level of wheat production can be amplified by up to 30% by mollifying the technical efficiency of wheat crop.