Efficiency and farm size in Egypt: a unit output price profit function approach

Abstract

The main objective of this study is to analyse size and efficiency in Egyptian agriculture using an econometric approach, free of the problem of simultaneous equation bias, associated with the production function technique. The identification of factors which affect farm level productivity in the study area are also considered. The results reveal that the efficiency of management in both large and small farms is the same; and that large farms appear not to be more efficient than small farms. The study also indicates that increasing the ulitilization of cultivated land and machinery service and raising the output price are important if production is to increase.