Abstract
The study attempted to investigate the role of credit in cotton production by developing a relationship between credit and technical efficiency. The study also explores the sources of technical inefficiency by farm size groups by employing the stochastic frontier production function approach. It employed cross-section survey data of 120 farmers collected from District Muzaffar Garh. The results indicated that all three farm size categories have almost the same level of technical efficiency with slightly higher level of technical efficiency at middle farm size category followed by small and large farms. However, per acreage cost of production is found to be directly proportion to farm size implying that lowest cost of production is observed at small farms followed by middle and large farms. The major contribution of our study is, small farmer should be focused to provide credit facilities with the binding constraints that the credit should be invested to purchase tractor or to install tub wells because our results clearly depicts that availability of credit, source of power and location of farm at water course are affecting the technical efficiency of small farmers in cotton production more rigorously and with higher level of significance compared to other two farm size categories. Keywords:c

Abedullah, Shahzad Kouser, Khalid Mushtaq . (2006) Role of credit to enhance cotton production in Punjab, Pakistan, , Volume 43, Issue 3,4.
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