Loan Relevance to Farmer's Technical Efficiency in Sistan and Baluchestan Province

This paper has compared and studied technical efficiencies of two farmer groups in the Sistan and Baluchestan province, one of which had borrowed some loan and the other had not, using data from 180 farmer-operators during the farming year of 2002-3 and applying the function of borderline production. As shown in the results, the borrowing group proved to have had a higher efficiency and used efficiently its accessible resources. Finally, considering the study results, a number of recommendations has been presented.