Effects of labour migration on productivity and technical efficiency in rice farming in Kanchanpur, Nepal
Date
2023
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Department of Economics
Abstract
Labor migration for employment is one of the most significant economic phenomena in a
country like Nepal. However, there is no consensus among past studies on whether
smallholder agricultural systems are deteriorated, are reinforced or remain unchanged due
to the labour migration for foreign employment and the remittance received. This study
aims to examine the effects of labour migration for foreign employment on productivity
and technical efficiency of rice farmers applying it to the case of Nepal.
The study is based on primary data obtained through cross sectional single-visit survey of
randomly selected representative samples of migrant and non-migrant households during
January 2022. Sample for the study consist of 140 households, comprising 67 migrants
and 73 non-migrant households. The study employed Cobb-Douglas production function
and stochastic production frontier analysis to estimate productivity and technical
efficiency respectively. T-test was conducted to see the difference between the socioeconomic
and
farm-related
characteristics
of migrant
and non-migrant
households.
The
study
found
that
the
average
yield
of
rice
was
lower
in
the
migrant
households
than
that
of non-migrant households. The mean value of marginal productivity of land was
estimated 0.89 quintal per kattha for migrant households and 1 quintal per kattha for nonmigrant
households.
The
mean
value
of
average
productivity
was
estimated
1.33
quintal
and
1.43 quintal for migrant and non-migrant households, respectively. Similarly, the
estimated mean technical efficiency level was 82 percent for migrant household and 94
percent for non-migrant households. Moreover, the migrant households lagged behind in
socio-economic and farm-related characteristics including land holding, access to
irrigation, mechanization, education, use of inputs and output compared to non-migrant
households.
Based on the findings of the study, it can be concluded that labour migration for foreign
employment has negative effect on farm productivity and technical efficiency. There is a
need for more in-depth analysis at a greater scale.
Description
Keywords
Labour migration, Rice farming