Yoezer, Karma. Efficiency and technical change in the Bhutanese rice sector : a Malmquist total factor productivity approach. Master's Degree(Economics). Thammasat University. Thammasat University Library. : Thammasat University, 2019.
Efficiency and technical change in the Bhutanese rice sector : a Malmquist total factor productivity approach
Abstract:
Sustainable growth in domestic food production cannot just depend on mobilizing its factor resources but will also require growth in productivity. Paper aims to study the total factor productivity growth (TFP) of Bhutanese rice sector for the period 2009-2010 to 2016-2017. Nonparametric Malmquist index approach measures TFP growth and decomposes TFP growth components into efficiency and technology change. The result from Malmquist TFP show that overall average annual productivity growth at national level was only slightly positive mainly propelled by technological change. Further decomposition of Malmquist TFP at regional level indicate that huge rice TFP growth differences existed among rice agroecological zones in the country. The regional rice productivity growth was found relatively higher in Dry Sub-Tropical Zone (AEZ2) and Humid Sub-Tropical Zone (AEZ3) and lower in Warm temperate Zone (AEZ1) and Wet Sub-Tropical Zone (AEZ4). Technical change remains the main source behind rice TFP growth in the regions during the study period. In addition to Malmquist TFP estimation, panel least square method was also applied to determine the factors influencing TFP growth in Bhutanese rice sector. The analysis of the factors determining TFP changes suggested that irrigation, population and rainfall were found to be the important source of rice TFP growth in Bhutan. The findings of this research conclude that low TFP growth at national and regional level both results from sluggish growth in TEC over the period. Therefore, future policy interventions should focus on raising the level of TEC by improving agricultural extension services, provision of government assistance in improving farmers income and development of regional rice research station
Thammasat University. Thammasat University Library