Technical Efficiency of Carp Production in Nepal: An Application of Stochastic Frontier Production Function Approach

Posted: 7 Oct 1999

See all articles by Khem R. Sharma

Khem R. Sharma

University of Hawaii - Department of Molecular Biosciences & Bioengineering (MBBE)

Ping-Sun Leung

University of Hawaii - Department of Molecular Biosciences & Bioengineering (MBBE)

Abstract

Modern aquaculture is a relatively new activity among Nepalese farmers and a small contributor to the economy. Given the abundance of water resources and fish species, rising demand for fish, and its high profitability, aquaculture has potential for future expansion if it gets appropriate attention from the government. In Nepal, productivity in aquaculture is much lower compared to other countries in the region, which suggests that there is potential for increased fish production through technological progress and improvement in farm-level technical efficiency. However, no formal analysis has yet been conducted to assess the productive performance of Nepalese aquaculture and its potential for future improvement. Against this background, this paper examines the technical efficiency and its determinants for a sample of fish pond farms from the Tarai region of the country using a stochastic production frontier involving a model for technical inefficiency effects. The estimated mean technical efficiency is 77%, with intensive farms being more efficient than extensive farms. The adoption of regular fish, water, and feed management activities has a strong positive effect on technical efficiency.

JEL Classification: D24, Q22

Suggested Citation

Sharma, Khem R. and Leung, Ping-Sun, Technical Efficiency of Carp Production in Nepal: An Application of Stochastic Frontier Production Function Approach. Available at SSRN: https://ssrn.com/abstract=154792

Khem R. Sharma (Contact Author)

University of Hawaii - Department of Molecular Biosciences & Bioengineering (MBBE) ( email )

Gilmore Hall 111
3050 Maile Way Department of Biosystems Engineering
Honolulu, HI 96822
United States

Ping-Sun Leung

University of Hawaii - Department of Molecular Biosciences & Bioengineering (MBBE) ( email )

Gilmore Hall 111
3050 Maile Way
Honolulu, HI 96822
United States

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