Agricultural Efficiency in Myanmar Efficiency Differences and Drivers behind them in Myanmar’s States and Regions
Efficiency differences and drivers behind them in Myanmar’s state and regions
DOI:
https://doi.org/10.14456/thaidoa-agres.2023.9Keywords:
Agriculture, myanmar, efficiency, DEA, SFAAbstract
Efficiency in agricultural production is crucial for developing countries. This statement is particularly true for Myanmar, where more than two-thirds of the population relies on agriculture for their livelihoods. By using a set of four surveys collected by the World Food Program during the period 2012-2015, this paper measures agricultural efficiency in Myanmar’s states and regions using both stochastic frontier analysis (SFA) and data envelopment analysis (DEA), while controlling the geographical conditions. Results show that areas that are the traditional focus of agricultural policies (Shan State and the Ayeyarwady river basin) are highly inefficient. To understand this result, the paper analyses how differences in efficiency relate to available capital sources for the farmers, ownership of assets, and crop diversification. This analysis sheds light on the role of monitoring, credit constraints, property rights, and the production of market-oriented crops. Finally, the paper analyses the prevailing conditions in individual regions and states and discusses policy opportunities to increase efficiency in the different administrative units.
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