A comparison of input resource use and production efficiency of wheat between China and Pakistan using Stochastic Frontier Analysis (SFA)

The efficient usage of input resources, and adoption of modern technology strengthen the agricultural productivity and efficiency. The present study aims to compare the inputs usage and production efficiency of wheat in China and Pakistan. The wheat production efficiency was estimated by using wheat farm level primary data from district Kambar Shandadkot in Sindh province in Pakistan and district Bozhou in Anhui province China. The survey was used to residents of 21 villages in Kambar Shandadkot and 22 villages in BoZhou. A total of 120 wheat farmers were randomly interviewed for the case of both countries. To analyses the wheat production efficiency by using stochastic frontier analysis (SFA) model a set input and output parameters are used as, the output parameter of wheat farm productivity, input parameters as wheat farmland, wheat seeds, fertilizer, farmyard manure, pesticides, labor, and machinery used. For the estimation of technical inefficiency of a household the parameters such as wheat farmer age, education and farming experience were used. The results of estimated Maximum likelihood estimates (MLE) shows the wheat farm size, and farming experience of wheat farmers in both countries are the major favorable component of wheat production in both countries. However, the wheat seed and more use of machinery in wheat farms are a positive factors of China's wheat production over wheat farm production of Pakistan. The result shows the 26.67 percent of wheat farms have the highest production efficiency in Pakistan, However, in China, more farms about 33.33 percent have the highest wheat farm production efficiency. Study concluded that China have highest wheat farm production efficiency comparing to Pakistan, due to adoption of modern seed technology and high use of modern machinery and proper usage of input resources.