Technical efficiency and reduction in input costs in agriculture: case of genetically modified cotton

Abstract

Adoption of labour-saving agricultural technologies is often determined by peak-season labour scarcity and uncertainty in labour supply, besides the need to reduce overall cost of production. Adoption of labour-saving technological innovations could also be justified on efficiency grounds. Technology-led agricultural growth is believed to ensure economic gains to cultivators, increase in real wages and creation of employment opportunities. This paper estimates changes in mean technical efficiency in herbicidetolerant cotton, vis-à-vis conventional Bt cotton crops. Analysis indicates that use of herbicide-tolerant technology is technically more efficient, as it reduces wastage of purchased farm inputs due to absence of crop-weed competition, in addition to ease of cultivation related operations termed in literature as nonpecuniary benefits.

Economic and Environmental Performance of the Agricultural Sectors of the Selected EU Countries

“…This raises the idea that various forms of protectionism are preferred in less developed economic sectors; thus, more developed economies should place their emphasis on liberal free trade and market relations in order to facilitate growth and efficiency. Mehta [28] focused on the effect the technical efficiency had on the labor market, stressing its impact on lowering demand for labor in agriculture, but also showing its negative consequences during peak moments. Siddique et al [29] showed a strong correlation between the education level of farmers and the technical efficiency level.…”