Agriculture Reference
In-Depth Information
Table 3. (Continued)
Variables
Parameters
Coefficient
t-ratio
Timing of first weeding
δ
6
0.0106
0.84
Timing of first irrigation
δ
7
-0.0082
-1.05
Mechanical power
δ
8
-0.0435
-2.71***
Source of procuring seed
δ
9
0.0137
1.98**
Link with extension services
δ
10
-0.0001
-0.38
Sources of agricultural information
δ
11
-0.0149
-2.58***
Training
δ
12
-0.0247
-1.88*
Wheat area
δ
13
-0.9250
-3.20***
Total number of observations
293
Note: *** significant at 1 % level (p<0.01);
** significant at 5 % level (p<0.05); * significant at 10 % level (p<0.10)
Table 4. Tests of hypotheses
Hypothesis
Critical value of
χ
2
(v, 0.95)
LR statistic
Decision
Choice of the functional form
(H
0
: β
11
= β
22
= …. = β
45
= 0)
27.49
50.51**
Reject H
0
No effect of environmental variables on
productivity
(H
0
: φ
1
= φ
2
= …. = φ
7
= 0)
14.07
81.06**
Reject H
0
Presence of inefficiency, (H
0
: γ = 0)
3.84
4.27**
Reject H
0
No effect of managerial variables on
inefficiency
(H
0
: δ
1
= δ
2
= …. = δ
13
= 0)
22.36
102.37**
Reject H
0
Constant returns to scale in production
(H
0
: α
1
+ α
2
+ …. + α
5
= 1)
3.84
4.71**
Reject H
0
Note: In testing (H
0
: γ = 0) the critical value of χ
2
(1,0.95)
was used which is 3.84.
** significant at 5 % level (p<0.05)
Table 5. Technical efficiency estimates
Items
Proportion of farmers
Efficiency levels
upto 70%
3.42
71 - 80%
32.76
81 - 90%
46.07
91% and above
17.75
Efficiency measures
Mean efficiency score
0.83
Standard deviation
0.07
Minimum
0.66
Maximum
0.99
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