preprints.org > business, economics and management > economics > doi: 10.20944/preprints202408.1796.v1 (registering DOI)

Preprint Article Version 1 This version is not peer-reviewed

Version 1 : Received: 21 August 2024 / Approved: 25 August 2024 / Online: 26 August 2024 (16:27:49 CEST)

ABSTRACT CONTEXT: Agriculture is the largest sector of Nepalese economy among the south-Asian developing countries that contributed 26.98 % share of Gross Domestic Product (GDP) in the year 2018/19. The capacity to derive maximum output by per unit of resource is resource use efficiency. Resource use efficiency of a producer explains the comparison between inputs and output value. Potato is staple vegetable in every parts of Nepal. Cobb-Douglas production function is used to predict the significance of inputs in income from cash crops. Due to lack of optimum utilization of available resources in cultivation of vegetable like lack of technical knowledge, low education level, and extensive service the productivity and production is low in Nepalese economy. It ensures vegetable security in Nepal. Though, there are extensive researches on the resource use efficiency and productivity issues on agriculture, very few papers explored in the case of Sudurpaschim province of Nepal OBJECTIVE: This study had the specific purposes: (1) To identify the factors affecting in resource use efficiency and productivity of potato production (2) to utilize the resource use efficiency and productivity in potato production and (3) to show the type of returns to scale in potato production. METHODS: Applying post-positivist paradigm and quantitative causal survey research design, it explored the resource use efficiency and productivity through the semi-structured questionnaire from 140 households by random sampling. Data analysis was carried out by multiple regression model using Cobb-Douglas production function. SPSS software was used to find quantitative results. From the analysis of data using mean, and SD, t-test, analysis of variance, Durbin-Waston test, Marginal Value Product and marginal Factor cost, findings of this research was emerged. RESULTS AND DISCUSSION: The major findings: education level, extension service, farm size and pesticide cost were significant variables in potato production; seed, hired labor, Family Yard Manure and pesticide cost were overused and needed to decrease their cost for optimum allocation and there was decreasing returns to scale in production. This study emphasized on increasing education level, extensive service and farm size for optimum utilization of resources and increasing returns to scale. SIGNIFICANCE: Barriers to Indian potatoes and increasing returns to scale are only possible through protection policy of government. For optimum use of resources and increasing returns to scale, government can introduce capital intensive technique. This study can be implied in policy making and improving existing situation of agriculture, and allocating budget.

Keywords: agriculture; farmers; resource use efficiency; productivity; returns to scale; potato

Business, Economics and Management, Economics

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