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Determinants of Technical Inefficiency of Handloom Weaving Industry in Kushtia District of Bangladesh: A Tobit Model Approach
Journal of Investment and Management
Volume 4, Issue 4, August 2015, Pages: 95-99
Received: Jul. 14, 2015; Accepted: Jul. 28, 2015; Published: Aug. 11, 2015
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Authors
Md. Khairul Islam, Department of Economics, University of Rajshahi, Rajshahi, Bangladesh
Md. Elias Hossain, Department of Economics, University of Rajshahi, Rajshahi, Bangladesh
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Abstract
This paper is an attempt to analyze the determinants of technical inefficiency of handloom weaving units operating in Kumarkhali Upazila of Kushtia District in Bangladesh. The study is mainly based on primary data that are collected through structured questionnaire from handloom unit owners in the study area. A total of 57 handloom units are randomly selected for the study. Cobb-Douglas production function model is employed to obtain the technical efficiency of handloom units and technical inefficiency index is calculated from the obtained efficiencies. Tobit Model is used to identify the factors of inefficiency in the handloom weaving units. From the analysis, average inefficiency of handloom units in the study area is found to be 0.245. The major findings of the study show that education, experience, size of unit, and age of owners are significant factors influencing technical inefficiency of handloom weaving units.
Keywords
Handloom Industry, Technical Inefficiency, Determinants, Tobit Model, Bangladesh
To cite this article
Md. Khairul Islam, Md. Elias Hossain, Determinants of Technical Inefficiency of Handloom Weaving Industry in Kushtia District of Bangladesh: A Tobit Model Approach, Journal of Investment and Management. Vol. 4, No. 4, 2015, pp. 95-99. doi: 10.11648/j.jim.20150404.11
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