Measuring returns to scale for onion, tomato and chillies production in Sindh province of Pakistan

A production technology may exhibit constant, increasing or decreasing returns to scale. This paper estimate production function to measure the degree of returns to scale for onion, tomato and chilies using primary data collected from three districts of Sindh, namely Hyderabad, Thatta and Mirpurkhas...

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Published inInternational journal of agriculture and biology Vol. 9; no. 5; pp. 788 - 790
Main Authors Mari, F.M. (Sindh Agriculture Univ., Tandojam (Pakistan). Dept. of Agricultural Economics), Memon, R.A. (Sindh Agriculture Univ., Tandojam (Pakistan). Dept. of Agricultural Economics), Lohano, H.D. (Sindh Agriculture Univ., Tandojam (Pakistan). Dept. of Agricultural Economics)
Format Journal Article
LanguageEnglish
Published 01.09.2007
Subjects
CHILLIES
FARM INPUTS
ONIONS
PAKISTAN
PRODUCTION
PRODUCTION FUNCTIONS
PROFITABILITY
STATISTICAL METHODS
TOMATOES
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Summary:A production technology may exhibit constant, increasing or decreasing returns to scale. This paper estimate production function to measure the degree of returns to scale for onion, tomato and chilies using primary data collected from three districts of Sindh, namely Hyderabad, Thatta and Mirpurkhas. Functional form of the production function was specified as Cobb-Douglas functions with three inputs: land, labor and capital. Sum of the coefficients on these inputs measures the degree of homogeneity, which determines whether the production function is constant, increasing or decreasing returns to scale. Ordinary least square method was used for estimating the production function. The t-test was applied for testing the null hypothesis that degree of homogeneity equals 1. Null hypothesis was maintained at 5% significance level for each of onion, tomato and chilies crops. These results indicated that the production function has constant returns to scale for these crops.
Bibliography:CATPAK-60149
E16
ISSN:1560-8530
1814-9596