Title: Input shadow prices and overall efficiency of vegetable farms in Uzbekistan

Authors: Aziz A. Karimov

Addresses: International Livestock Research Institute, Regional Office for East and Southeast Asia, 17A Nguyen Khang Street, Trung Hoa Ward, Cau Giay District, Hanoi, Vietnam

Abstract: This paper attempts to estimate overall inefficiency of the sample of vegetable farms in Uzbekistan. Using the duality between the directional input distance function (DIDF) and the cost function, the study reports allocative inefficiency scores in addition to technical inefficiency in the vegetable farming system. Model results suggest for substantial reduction of input costs while maintaining the current level of production technology. Findings imply for better organisation of farming, improving access to market information, and developing extension services. The derived shadow prices of land and labour in the existence of production inefficiency could be of great interest to policy makers and researchers. Insofar as market-based reforms could take place and better incentives are provided, inefficient farmers could learn from farming best practices and adopt innovative and cost-effective ways of farming.

Keywords: vegetable production; DIDF; directional input distance function; Uzbekistan; shadow prices; overall efficiency; computational economics; vegetable farms; agriculture; cost function; technical inefficiency; farming organisation; market information; extension services; production inefficiency; best practice.

DOI: 10.1504/IJCEE.2015.068663

International Journal of Computational Economics and Econometrics, 2015 Vol.5 No.2, pp.164 - 182

Received: 18 Oct 2013
Accepted: 30 Jun 2014
Published online: 08 Apr 2015 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article