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Analysis of Economic Efficiency of Small-scale Onion Production in Volcanic Highlands in Rwanda

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  • Aristide Maniriho
  • Edouard Musabanganji
  • Philippe Lebailly

Abstract

Onion is recognized for its nutritional value, its curative capacities and its fitness to flavor diets. This article attempted to assess the economic efficiency of input combinations among onion farmers in the Volcanic Highlands in Rwanda. Data were collected using a questionnaire administered to a random sample of 94 small-scale onion producers. Cobb-Douglas type stochastic frontier functions were specified and estimated using maximum likelihood method to estimate technical, allocative, and economic efficiencies of onion production. A simultaneous-equations model was specified and estimated with seemingly unrelated regression method to identify the sources of technical, allocative, and economic efficiencies.

Suggested Citation

  • Aristide Maniriho & Edouard Musabanganji & Philippe Lebailly, 2020. "Analysis of Economic Efficiency of Small-scale Onion Production in Volcanic Highlands in Rwanda," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 16(3), pages 185-196.
    • Handle: RePEc:mje:mjejnl:v:16:y:2020:i:3:185-196
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    References listed on IDEAS

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    1. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 1993. "The Measurement of Productive Efficiency: Techniques and Applications," OUP Catalogue, Oxford University Press, number 9780195072181.
    2. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-444, June.
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    4. George E. Battese & Greg S. Corra, 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 21(3), pages 169-179, December.
    5. Kumbhakar,Subal C. & Wang,Hung-Jen & Horncastle,Alan P., 2015. "A Practitioner's Guide to Stochastic Frontier Analysis Using Stata," Cambridge Books, Cambridge University Press, number 9781107029514.
    6. Battese, George E. & Corra, Greg S., 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 21(3), pages 1-11, December.
    7. Aree Cheamuangphan & Aree Wiboonpongse & Yaovarate Chaovanapoonphol & Songsak Sriboonchitta, 2013. "Factors enhancing production efficiency of farmer households who are members of saving groups in Upper Northern Thailand," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 2(2), pages 71-82, June.
    8. Phillips, Joseph M. & Marble, Robert P., 1986. "Farmer education and efficiency: a frontier production function approach," Economics of Education Review, Elsevier, vol. 5(3), pages 257-264, June.
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    1. Aristide Maniriho & Edouard Musabanganji & Philippe Lebailly, 2022. "A Comparative Study between Major Crop (Potato) and Minor Crop (Onion) in Volcanic Highlands of Rwanda," Journal of Agriculture and Crops, Academic Research Publishing Group, vol. 8(2), pages 68-74, 04-2022.

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