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Impact of Infrastructure Support on the Technical Efficiency of Rice Production in Mindanao


The study attempted to measure the impact of infrastructure support – specifically, road and irrigation - on the technical efficiency of rice production in Mindanao using pooled time-series and cross-section data from 1991 to 2005. The study made use of the estimates of Pate (2006) on the technical efficiency of rice production using stochastic frontier approach with a balanced panel data of 15 regions in the Philippines from period 1991-2002. Secondary data on irrigation from the National Irrigation Administration and on road from the Department of Public Works and Highways were used for the analysis. Results showed that Mindanao has a comparative disadvantage in rice production as reflected in the costs and returns of rice production among Mindanao regions. Such comparative disadvantage was traced from the sluggish pace of road and irrigation development. Thus, it is recommended that the Department of Public Works and Highways must prioritize the pavement of roads given their crucial role in improving technical efficiency of rice production in Mindanao. It is also recommended that the Department of Agriculture, through the National Irrigation Administration, must fast-track the construction of additional small-scale irrigation systems to allow farmers a greater degree of control over their irrigation water.

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