An Application of the DEA Double Bootstrap to Examine Sources of Efficiency in Bangladesh Rice Farming

Abstract

In this paper we examine sources of technical efficiency for rice farming in Bangladesh. The motivation for the analysis is the need to close the rice yield gap to enable food security. We employ the DEA double bootstrap of Simar and Wilson (2006) to estimate and explain technical efficiency. This technique overcomes severe limitations inherent in using the two-stage DEA approach commonly employed in the efficiency literature. From a policy perspective our results show that potential efficiency gains to reduce the yield gap are greater than previously found. Statistically positive influences on technical efficiency are education, extension and credit, with age being a negative influence.