Technical, Allocative and Economic Efficiency of Cotton growing Farmers in Golestan Province: Case Study of Gorgan

The main objective of this study was to determine technical, allocative and economic efficiency of cotton producers. Data set were obtained from a sample of 180 cotton producers in Gorgan township using systematic random sampling method in 2008. Stochastic frontier production and cost frontier functions were used to analyze technical, allocative and economic efficiency. Results showed that some variables such as land area, machinery, labor, fertilizer and water had positive effects on cotton production. Education and extension affected technical inefficiency negatively while, relationship between technical inefficiency and number of patches was significant and positive. Average of technical, allocative and economic efficiencies were 90%, 85% and 77% respectively. The difference between minimum and maximum technical, allocative and economic efficiencies were 42%, 37% and 39% respectively.