Short Report
BibTex RIS Cite

TECHNICAL EFFICIENCY OF HANDLOOM INDUSTRY IN BANGLADESH: A STUDY

Year 2023, Volume: 4 Issue: 1, 33 - 47, 30.04.2023
https://doi.org/10.53280/jer.1217274

Abstract

The handloom textile industry is one of Bangladesh's major labor contributing endeavors that provides income and employment opportunities for a sizable section of rural labor. However, in recent years, the handloom textile industry has been experiencing severe competition with the power loom textile industries in terms of technical efficiency, wage discrimination, and profit margin. This study aims to measure the technical efficiency of the handloom textile industry in handloom rich areas of Bangladesh. This study used multistage sampling techniques to collect data from 50 handloom textile industries in the Sirajganj district. The Stochastic Frontier Analysis (SFA) technique was used to assess technical inefficiency and production efficiency. In contrast, the Benefit-Cost Ratio was used to determine the profit margin for handloom textile industries. The results show that the sample means technical efficiency is 79 percent, ranging from 38 to 100 percent. The SFA regression model also indicates that 66 percent of handloom industries have a 0.75–1.00 efficiency score, while 6 percent of the firms operate below 50 percent of technical efficiency. The Benefit-Cost Ratio analysis shows that handloom products are not highly profitable. The study also found that the existing handloom textile industries face high prices of colors and fabrics, lower adoption of technical knowledge, and obstacles to access to credit, all of which affect the production efficiency of handloom industries. With the foremost prospect of this industry, government policies should address the above problems to ensure favorable textile production in the study area.

Thanks

Saikat Pande

References

  • Ahmed, M. U. (1999). Development of Small-Scale Industries in Bangladesh in the New Millennium: Challenges and Opportunities, Asian Affairs, 21(1), 24-28.
  • Aigner, D. J., Lovell, C. A. K. & Schmidt, P. (1977). Formulation and Estimation of Stochastic Frontier Production Function Models. Journal of Econometrics, 6(1), 21-37. https://doi.org/10.1016/0304-4076(77)90052-5
  • Ajibefun, I. A. & Abdulkadri, A. O. (1999). An Investigation of Technical Inefficiency and Production of Farmers under the National Directorate of Employment in Ondo State, Nigeria. Applied Economics Letter, 6, 111-114. https://doi.org/10.1080/135048599353735
  • Ajibefun, I. A. & Daramola, A. G. (1999). Measurement and Source of Technical Inefficiency in Poultry Egg Production in Ondo State, Nigeria. Journal of Economics and Rural Development, 13, 85-94.
  • Banarjee, S., Moniruzzaman, M. & Sharmin, M. S. (2014). Status of Handloom Workers and Causes of Their Migration: A Study in Handloom Industry of Tangail District, Bangladesh. Research on Humanities and Social Sciences, 4(22), 157-162.
  • Bangladesh Handloom Board (BHB), (2012). Importance of Handlooms in Bangladesh. Bangladesh Handloom Board, Bangladesh Handloom Board, Bangladesh Handloom Board, Dhaka.
  • Battese, G. E. & Coelli, T. J. (1995). A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data. Empirical Economics, 20(2), 325-332. https//doi org/10.1007/BF01205442
  • Battese, G. E., Rambaldi, A. N. & Wan, G. H. (1997). Stochastic Frontier Productions Function with Flexible Risk Properties. Journal of Productivity Analysis, 8, 269-280. https://doi.org/10.1023/A:1007755604744
  • BBS (Bangladesh Bureau of Statistics), (2018). Report on Bangladesh Handloom Census 2018, Dhaka. Planning Division, Ministry of Planning, Dhaka, Bangladesh.
  • Bolts, W. (1772). Considerations on India Affairs and its Dependencies to Which Is Prefixed, A Map of Those Countries, Chiefly from Actual Surveys. J. Almon in Picadilly, P.Elmsly in the Strand, and Brotherton and Sewell in Cornhill. https://10.11648/j.ss.20160505.12
  • Islam M. K. & Hossain M. E. (2018). Determinants of Profitability of Handloom Weaving Units Operating in Kumarkhali Upazilas of Kushtia District in Bangladesh. International Journal of Research in Business Studies and Management, 5(5), 1-7.
  • Islam, M. K. & Hossain, M. E. (2015). Determinants of Technical Inefficiency of Handloom Weaving Industry in Kushtia District of Bangladesh: A Tobit Model Approach. Journal of Investment and Management, 4(4), 95-99.
  • Islam, M. K. & Hossain, M. E. (2012). An Analysis of Present Scenario of Handloom Weaving Industry in Bangladesh. Rabindra Journal, 3(1), 1-14.
  • Islam, M. K., Hossain, M. E. & Ghosh, B. C. (2013). Cost-Benefit Analysis of Handloom Weaving Industry in Kumarkhali Upazilas of Kushtia District, Bangladesh. Development Compilation, 9(1), 63-72.
  • Jaforulla, M. (1999). Production Technology, Elasticity of Substitution and Technical Efficiency of the Handloom Textile Industry of Bangladesh. Applied Economics, 31(4), 437-442. https://doi.org/10.1080/000368499324147
  • Kalyani, A., Rohitha, V. & Bharathi, M. P. (2017). An Analytical Study on Issues of Handloom Industry in Undivided State of Andhra Pradesh. International Journal of Innovative Research Explore, 4(6).
  • Kumbhakar, S. C. (1990). Production Frontiers, Panel Data, and Time-Varying Technical Inefficiency. Journal of Econometrics, 46(1), 201-211.
  • Liton, M. R. I., Islam, T. & Saha, S. (2016). Present Scenario and Future Challenges in Handloom Industry in Bangladesh. Social Sciences, 5(5), 70-76.
  • Meeusen, W. & Van Den Broeck, J. (1977) Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error. International Economic Review, 18, 435-444. https://dx.doi.org/10.2307/2525757
  • Rahman, M. A. & Noman, M. H. (2019). Poverty and Food Security Analysis of Handloom Weaver Households in a Selected Area of Bangladesh. Journal of the Bangladesh Agricultural University, 17(1), 80-85, 10.3329/JBAU.V17I1.40667.
  • Rahman, M. M. (2013). Prospects of Handloom Industries in Pabna, Bangladesh. Global Journal of Management and Business Research, 13(5), 8-18.
  • Villano, R. & Fleming, E. (2004). Analysis of Technical Efficiency in a Rainfed Low-Land Rice Environment in Central Luzon. Agricultural and Resource Economics, 2(2), 1-12.
  • Vimalkumar, R. (2018). Future and challenges of the handloom industry in Jaffna, Sri Lanka. 7 https://slfue.org/images/slfue2018_SUSL/proceedings/proceedings-2018.pdf

BANGLADEŞ'TE EL TEZGAHI ENDÜSTRİSİNİN TEKNİK VERİMLİLİĞİ: BİR ÇALIŞMA

Year 2023, Volume: 4 Issue: 1, 33 - 47, 30.04.2023
https://doi.org/10.53280/jer.1217274

Abstract

El tezgahı tekstil endüstrisi, Bangladeş'teki birçok kırsal işçi için önemli bir gelir ve istihdam kaynağıdır.
Ancak, makineli dokuma endüstrilerinden gelen rekabetle karşı karşıya kalmakta bu da ücret ayrımcılığına ve azalan kar marjlarına neden olmaktadır. Bu çalışma, Bangladeş'in el dokumacılığı açısından zengin bölgelerinde el dokumacılığı tekstil endüstrisinin teknik etkinliğini ölçmeyi amaçlamaktadır. Bu çalışmada, Sirajganj bölgesindeki 50 dokuma dokuma endüstrisinden veri toplamak için çok aşamalı örnekleme teknikleri kullanılmıştır. Teknik verimsizliği ve üretim verimliliğini değerlendirmek için Stokastik Sınır Analizi (SFA) tekniği kullanılmıştır. Buna karşılık, el dokuma tekstil endüstrileri için kar marjını belirlemek için Fayda-Maliyet Oranı kullanılmıştır. Bulgular, örneğin teknik etkinliğinin yüzde 38 ile yüzde 100 arasında değiştiğini ve ortalama değerin yüzde 79 olduğunu göstermektedir. SFA regresyon modeli ayrıca el dokuma tezgahı endüstrilerinin yüzde 66'sının 0.75-1.00 verimlilik puanına sahip olduğunu göstermektedir. Fayda-Maliyet Oranı analizi, el tezgahı ürünlerinin çok karlı olmadığını göstermektedir. Çalışma ayrıca, yüksek renk ve kumaş fiyatları, teknik bilginin daha az uyarlanması ve krediye erişimin önündeki engeller dahil olmak üzere üretim verimliliğini etkileyen çeşitli faktörleri belirlemiştir. Bölgede uygun tekstil üretimini sağlamak için hükümet bu konuları ele almalıdır.

References

  • Ahmed, M. U. (1999). Development of Small-Scale Industries in Bangladesh in the New Millennium: Challenges and Opportunities, Asian Affairs, 21(1), 24-28.
  • Aigner, D. J., Lovell, C. A. K. & Schmidt, P. (1977). Formulation and Estimation of Stochastic Frontier Production Function Models. Journal of Econometrics, 6(1), 21-37. https://doi.org/10.1016/0304-4076(77)90052-5
  • Ajibefun, I. A. & Abdulkadri, A. O. (1999). An Investigation of Technical Inefficiency and Production of Farmers under the National Directorate of Employment in Ondo State, Nigeria. Applied Economics Letter, 6, 111-114. https://doi.org/10.1080/135048599353735
  • Ajibefun, I. A. & Daramola, A. G. (1999). Measurement and Source of Technical Inefficiency in Poultry Egg Production in Ondo State, Nigeria. Journal of Economics and Rural Development, 13, 85-94.
  • Banarjee, S., Moniruzzaman, M. & Sharmin, M. S. (2014). Status of Handloom Workers and Causes of Their Migration: A Study in Handloom Industry of Tangail District, Bangladesh. Research on Humanities and Social Sciences, 4(22), 157-162.
  • Bangladesh Handloom Board (BHB), (2012). Importance of Handlooms in Bangladesh. Bangladesh Handloom Board, Bangladesh Handloom Board, Bangladesh Handloom Board, Dhaka.
  • Battese, G. E. & Coelli, T. J. (1995). A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data. Empirical Economics, 20(2), 325-332. https//doi org/10.1007/BF01205442
  • Battese, G. E., Rambaldi, A. N. & Wan, G. H. (1997). Stochastic Frontier Productions Function with Flexible Risk Properties. Journal of Productivity Analysis, 8, 269-280. https://doi.org/10.1023/A:1007755604744
  • BBS (Bangladesh Bureau of Statistics), (2018). Report on Bangladesh Handloom Census 2018, Dhaka. Planning Division, Ministry of Planning, Dhaka, Bangladesh.
  • Bolts, W. (1772). Considerations on India Affairs and its Dependencies to Which Is Prefixed, A Map of Those Countries, Chiefly from Actual Surveys. J. Almon in Picadilly, P.Elmsly in the Strand, and Brotherton and Sewell in Cornhill. https://10.11648/j.ss.20160505.12
  • Islam M. K. & Hossain M. E. (2018). Determinants of Profitability of Handloom Weaving Units Operating in Kumarkhali Upazilas of Kushtia District in Bangladesh. International Journal of Research in Business Studies and Management, 5(5), 1-7.
  • Islam, M. K. & Hossain, M. E. (2015). Determinants of Technical Inefficiency of Handloom Weaving Industry in Kushtia District of Bangladesh: A Tobit Model Approach. Journal of Investment and Management, 4(4), 95-99.
  • Islam, M. K. & Hossain, M. E. (2012). An Analysis of Present Scenario of Handloom Weaving Industry in Bangladesh. Rabindra Journal, 3(1), 1-14.
  • Islam, M. K., Hossain, M. E. & Ghosh, B. C. (2013). Cost-Benefit Analysis of Handloom Weaving Industry in Kumarkhali Upazilas of Kushtia District, Bangladesh. Development Compilation, 9(1), 63-72.
  • Jaforulla, M. (1999). Production Technology, Elasticity of Substitution and Technical Efficiency of the Handloom Textile Industry of Bangladesh. Applied Economics, 31(4), 437-442. https://doi.org/10.1080/000368499324147
  • Kalyani, A., Rohitha, V. & Bharathi, M. P. (2017). An Analytical Study on Issues of Handloom Industry in Undivided State of Andhra Pradesh. International Journal of Innovative Research Explore, 4(6).
  • Kumbhakar, S. C. (1990). Production Frontiers, Panel Data, and Time-Varying Technical Inefficiency. Journal of Econometrics, 46(1), 201-211.
  • Liton, M. R. I., Islam, T. & Saha, S. (2016). Present Scenario and Future Challenges in Handloom Industry in Bangladesh. Social Sciences, 5(5), 70-76.
  • Meeusen, W. & Van Den Broeck, J. (1977) Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error. International Economic Review, 18, 435-444. https://dx.doi.org/10.2307/2525757
  • Rahman, M. A. & Noman, M. H. (2019). Poverty and Food Security Analysis of Handloom Weaver Households in a Selected Area of Bangladesh. Journal of the Bangladesh Agricultural University, 17(1), 80-85, 10.3329/JBAU.V17I1.40667.
  • Rahman, M. M. (2013). Prospects of Handloom Industries in Pabna, Bangladesh. Global Journal of Management and Business Research, 13(5), 8-18.
  • Villano, R. & Fleming, E. (2004). Analysis of Technical Efficiency in a Rainfed Low-Land Rice Environment in Central Luzon. Agricultural and Resource Economics, 2(2), 1-12.
  • Vimalkumar, R. (2018). Future and challenges of the handloom industry in Jaffna, Sri Lanka. 7 https://slfue.org/images/slfue2018_SUSL/proceedings/proceedings-2018.pdf
There are 23 citations in total.

Details

Primary Language English
Subjects Economics
Journal Section Research Articles
Authors

Saikat Pande 0000-0003-4645-4705

Kazi Mostafa Arif This is me 0000-0002-1086-2670

Publication Date April 30, 2023
Published in Issue Year 2023 Volume: 4 Issue: 1

Cite

APA Pande, S., & Arif, K. M. (2023). TECHNICAL EFFICIENCY OF HANDLOOM INDUSTRY IN BANGLADESH: A STUDY. Journal of Economics and Research, 4(1), 33-47. https://doi.org/10.53280/jer.1217274

22310