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Business Review

Abstract

The objective of this paper is to measure the technical, allocative and economic efficiencies of sugarcane farms in Pakistan. These efficiencies are measured by data envelopment analysis method using the farm level data collected from 333 sugarcane growers of Pakistan in 2008. The results show that the average technical efficiency of the sugarcane farms is 75 percent, the average allocative efficiency is 83 percent, and the average cost efficiency is 62 percent. The results indicate that the sugarcane farms of Pakistan can reduce the costs of production by 38 percent to produce the same level of output by using the inputs in optimal proportion and by improving the technical efficiency. The results also show that the existing level of sugarcane production can potentially be increased by 33.33 percent with the same level of inputs by improving the technical efficiency of the sugarcane farms.

Keywords

Data envelopment analysis, Efficiency, Sugarcane

Creative Commons License

Creative Commons Attribution 4.0 License
This work is licensed under a Creative Commons Attribution 4.0 License.

Published Online

March 02, 2021

Included in

Economics Commons

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