WSEAS Transactions on Environment and Development
Print ISSN: 1790-5079, E-ISSN: 2224-3496
Volume 17, 2021
Allocative Efficiency Analysis of Capsicum Cropping System under Tunnels
Authors: , ,
Abstract: The focus of this study was to analyze the allocative efficiency of the capsicum cropping system under tunnels. The data is collected from those farmers that were cultivating the capsicum crops under the tunnels in Pakistan. Cultivation of the crops under tunnels has a rising trend in Pakistan. To achieve the best possible output with a minimum cost of newly opted farm technology can be beneficial if farmers have proper skill and know-how regarding the application of balanced use of inputs. The sample size was around 150 capsicum farms. The Stochastic Frontier Analysis (SFA) was used to examine the allocative efficiency of capsicum farms in Pakistan. The result of the study demonstrated that the average allocative efficiency of capsicum cropping systems under tunnels in Pakistan was around 65%. Around 35% of allocative inefficiency is present in the capsicum cropping system. Mismanagement of resources related to the utilization of farm inputs i one of the main reasons for allocative inefficiency. After removing the mismanagement of resources, most farms have another way of reducing allocative inefficiency. It is linked with reallocating inputs or changing the input combination used, to achieve an optimum level of capsicum output at a given level of input prices. Hence, the objective of adoption of advanced farm technologies along with balanced application of farm inputs will result in higher farm productivity and allocative efficiency.
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Pages: 502-509
DOI: 10.37394/232015.2021.17.48