ESTIMATION OF GROSS AND NET TECHNICAL EFFICIENCIES OF WHEAT PRODUCTION IN BANGLADESH UNDER TWO ALTERNATIVE FUNCTIONAL FORMS

This study aims at estimating gross and net technical efficiencies using four alternative Cobb- Douglas stochastic production frontiers. This study reveals that production of wheat in Bangladesh is profitable and small farmers earned significantly higher yield and net returns per hectare than other fart groups. Technical efficiency scores estimated from different models vary from 46 percent to 99 percent and the maximum efficiency attained at the level 90-100 percent. Average gross technical efficiency varies from 86 to 89 percent whereas average net technical efficiency varies from 90 to 92 percent. This study also reveals that wheat output can be increased in the range 8-11 percent by using the existing resources and technology. It is obvious that environmental factors have positive impact on both production and technical efficiency. The development of advanced technology is the only option to increase wheat production in the long-run.