Do Differences in Technical Efficiency Explain the Adoption Rate of HYV Rice? Evidence from Bangladesh

Abstract

This paper estimates the technical efficiency of traditional variety (TV) and highyielding-variety (HYV) rice producers in Bangladesh as well as explores the determinants of HYV rice adoption in a survey data from 360 farmers for the 2008/09 growing seasons. Estimates by stochastic frontier analysis indicated that in spite of its much yield potential, HYV rice production was associated with lower technical efficiency and had a greater variability in yield. Results indicated that technical efficiency of HYV and TV rice were related to age, experience, off-farm income, extension visits, and access to microfinance. A Tobit analysis revealed that the adoption of HYV rice was significantly and positively influenced by farmers’ age and experience, level of technical efficiency, irrigation coverage, off-farm incomes, access to microfinance, perception of yield and membership of village-local groups.