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Importance, Structural Change and Factors Affecting Production of Vegetables in Bangladesh

M. Kamurzzaman
Department of Agricultural Economics, Bangabandhu Sheikh Mujibur Rahman Agricultural University, Gazipur-1706, Bangladesh.

Hiroyuki Takeya
Graduate School of Bioagricultural Sciences, Nagoya University, Nagoya, 464-8601, Japan.

Abstract/ Executive Summary:

The present study was undertaken to find out the importance, structural change and factors affecting production of vegetables over a period of 1972-73 to 2003-04. The results indicated that vegetables are being an important component of crop production in Bangladesh in terms of area, production, value addition to GDP and export earnings. There was a structural change in vegetable production in the post policy reform period due to research, extension and export promotion activities. Policy reform, area and humidity variables showed statistically significant influence on different types of vegetable production. If policy reforms in terms of research and extension program and attracting foreigners investment for exporting of vegetables is continued than vegetable production may increase further. Practicing of crop rotation might increase area under these crops production. Special care should also be taken for developing disease resistant high yield potential vegetable varieties for increasing and sustaining vegetable production.

Keywords: Importance, Policy reforms, Structural Change, Vegetable production

Location: Bureau of Statistics of Bangladesh (BBS) and The Peoples Republic of Bangladesh.

Start Date: 00-00-1972

End Date: 00-00-2004

Program Area: Socio-economic and Policy

Commodity: Vegetables

Objectives:

To find out the importance, structural change and factors affecting production of vegetables

Methodology:

Data on area, production, nominal price, rainfall, humidity and dollar-taka exchange rate from 1972-73 to 2003-04 was used for this study. The data were collected from different issues of agricultural yearbook of Bangladesh published by the Bureau of Statistics of Bangladesh (BBS) and ministry of finance of the government of the Peoples Republic of Bangladesh. The nominal price expressed in Bangladesh Taka (BDT) was converted into US $ using dollar-taka exchange rate of the respective year. Secondary sources of information can yield more accurate data where a government or international agency has undertaken a large-scale survey, or even a census; this is likely to yield far more accurate results. The assembly and analysis of secondary data almost invariably improves the researcher`s understanding of the problem, the various lines of inquiry that could or should be followed and the alternative courses of action, which might be pursued. Five-year moving averages, dummy variable technique for testing of structural change and a multiple regression model was used to analyze the data. Five-year moving averages were used to eliminate fluctuation in area, production and value addition. It was assumed that effect of policy reform might influence vegetable production from 1984-85. Structural stability test was performed to verify whether there was any structural change in vegetable production or not between pre (1972-73 to 1983-84) and post (1984-85 to 2003-04) policy reform period. Dummy variable technique was used to test the structural stability. The regression model used in the study. The null hypothesis of the structural stability test was H₀: γ₁ = β₁ and γ₂ = β₃, if the first null hypothesis is accepted then it indicates that there was no change between two periods, which is originated from the intercept (due to autonomous production). If the second null hypothesis is accepted then it indicates that there was no change between the two periods, which is originated from the slope coefficient (due to policy effect). A multiple regression analysis was done to identify the factors influencing the production of different summer and winter vegetables.

Source of Information: International Journal of Agricultural Research, 3(6): 397-406, 2008, ISSN 1816-4897.

Article Link (Online Journal): DOI: 10.3923/ijar.2008.397.406; URL: http://scialert.net/abstract/?doi=ijar.2008.397.406

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The results indicated that vegetables are being an important component of crop production in Bangladesh in terms of area, production, value addition to GDP and export earnings. There was a structural change in vegetable production in the post policy reform period due to research, extension and export promotion activities. Policy reform, area and humidity variables showed statistically significant influence on different types of vegetable production. If policy reforms in terms of research and extension program and attracting foreigners investment for exporting of vegetables is continued than vegetable production may increase further. Practicing of crop rotation might increase area under these crops production. Special care should also be taken for developing disease resistant high yield potential vegetable varieties for increasing and sustaining vegetable production.

Knowledge Management: Journal