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Abstract
This study aimed at examining the merit of crop diversification as a strategy for agricultural
growth in Bangladesh. Specifically, the existence of economies of diversification, scale
economies and diversification efficiencies at the farm level were examined using a stochastic
input-distance function approach. Results reveal strong evidence of diversification economies
amongst most crop enterprises except the combination of modern rice and modern wheat
enterprises. Ray economies of scale exist in Bangladeshi cropping system. Also, significant
efficiency gains were made from diversification among cropping enterprises. The key policy
implication is that crop diversification should be a desired strategy for agricultural growth in
Bangladesh. Development of the rural infrastructure is also essential as this will not only
improve technical efficiency but may also synergistically promote crop diversification by
opening up opportunities for technology diffusion, marketing, storage and resource supplies.