Analysis of the Technical Efficiency of Rice Production in Radhi Gewog, Trashigang District, Bhutan: A Stochastic Frontier Approach
Karma Yoezer *
Department of Economics and Social Science, Sherubtse College, Royal University of Bhutan, Bhutan.
Yeshey Wangmo
Department of Social Science, Sherubtse College, Royal University of Bhutan, Bhutan.
*Author to whom correspondence should be addressed.
Abstract
Rice is the staple cereal crop in Bhutan. This paper analyzes the technical efficiency and its associated factors that influences the rice efficiency in Radhi Gewog, Trashigang District in Eastern Bhutan. Primary data on socio-economic and production function data were collected by employing stratified random sampling from 120 rice producing farmers for the year 2021-2022. The stochastic frontier parametric analysis approach was used for analyzing the objective of the paper. The results showed that rice farmers in the study area are technically efficiency at 76.4 percent. Training, size of the household and extension were found to have significant effect on maize technical efficiency.
Keywords: Production, parametric, output, technical efficiency, yield