Int. J. Computational Economics and Econometrics, Vol. x, No. x, xxxx 1
Copyright © 200x Inderscience Enterprises Ltd.
Input shadow prices and overall efficiency of
vegetable farms in Uzbekistan
Aziz A. Karimov
International Livestock Research Institute,
Regional Office for East and Southeast Asia,
17A Nguyen Khang Street, Trung Hoa ward,
Cau Giay district, Hanoi, Vietnam
E-mail: az.karimov@cgiar.org
Abstract: This paper attempts to estimate overall inefficiency of the sample
of vegetable farms in Uzbekistan. Using the duality between the
directional input distance function and the cost function, the study
reports allocative inefficiency scores in addition to technical
inefficiency in the vegetable farming system. Model results suggest for
substantial reduction of input costs while maintaining the current level of
production technology. Findings imply for better organisation of farming,
improving access to market information, and developing extension services.
The derived shadow prices of land and labour in the existence of production
inefficiency could be of great interest to policy makers and researchers.
Insofar as market-based reforms could take place and better incentives are
provided, inefficient farmers could learn from farming best practices and
adopt innovative and cost-effective ways of farming.
Keywords: vegetable production; directional input distance function;
Uzbekistan; shadow prices; overall efficiency; computational economics.
Reference to this paper should be made as follows: Karimov, A.A.
(xxxx) ‘Input shadow prices and overall efficiency of vegetable farms in
Uzbekistan’, Int. J. Computational Economics and Econometrics, Vol. x, No. x,
pp.xxx–xxx.
Biographical notes: Aziz A. Karimov is a Scientist at the International
Livestock Research Institute based in Hanoi, Vietnam. Previously, he was a
Research Fellow at the World Institute for Development Economics
Research of the United Nations University (UNU-WIDER). Aziz has a PhD in
Agricultural Economics from the Center for Development Research of the
University of Bonn and MA in Economics from Northeastern University.
His particular interests include applying productivity and efficiency
methodologies to the fields of agricultural and resource economics as well as
environmental economics.
This paper is a revised and expanded version of a paper entitled ‘Economic
inefficiency and shadow prices of inputs: The case of vegetable growing farms
in Uzbekistan’ presented at International Conference on Applied Economics
(ICOAE2013), Istanbul, 27–29 June, 2013.