IDEAS home Printed from https://ideas.repec.org/a/spr/snbeco/v2y2022i12d10.1007_s43546-022-00383-3.html
   My bibliography  Save this article

Estimation and determinants of technical efficiency of smallholder cashew (anacardium) farmers in Dassa district, Benin: a bootstrap data envelopment approach

Author

Listed:
  • Raoul Akanro

    (Benin Centre for Scientific Research and Innovation)

  • Abraham Amoussouga Gero

    (National University of Agriculture, Benin)

  • Marie Odile Attanasso

    (Benin Centre for Scientific Research and Innovation
    University of Abomey-Calavi)

Abstract

Cashew nut production is becoming more important in Benin’s economy, and it helps to improve the living conditions of rural populations. This paper examines cashew producers’ technical efficiency in Dassa District using survey data collected from 100 farms in 2020. The research relies on bootstrap modeling of Data Envelopment Analysis, and Fractional Regression Model is applied to assess the determinants of producers’ technical efficiency. The results show the technical efficiency of the farms to be 34.56%, and the same level of production is obtained when inputs are reduced by 65.44%. The research shows that, contrary to theory, farmers without access to credit are more efficient than those with access, with a difference of 12.64%. Finally, the results show that schooling expenses and the sale of cashew apples as a by-product of production are promising factors that may increase the efficiency of cashew nut production. Policies to promote cashew farm efficiency need to focus on promoting formal education in rural areas, establishing a financial literacy training program for farm managers, and promoting the expansion of agricultural extension for farmers. In addition, producers should also set up a system for productive, substainable, and profitable use of cashew apples to increase their income.

Suggested Citation

  • Raoul Akanro & Abraham Amoussouga Gero & Marie Odile Attanasso, 2022. "Estimation and determinants of technical efficiency of smallholder cashew (anacardium) farmers in Dassa district, Benin: a bootstrap data envelopment approach," SN Business & Economics, Springer, vol. 2(12), pages 1-17, December.
  • Handle: RePEc:spr:snbeco:v:2:y:2022:i:12:d:10.1007_s43546-022-00383-3
    DOI: 10.1007/s43546-022-00383-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s43546-022-00383-3
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s43546-022-00383-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Leopold Simar & Paul Wilson, 2000. "A general methodology for bootstrapping in non-parametric frontier models," Journal of Applied Statistics, Taylor & Francis Journals, vol. 27(6), pages 779-802.
    2. Esmeralda Ramalho & Joaquim Ramalho & Pedro Henriques, 2010. "Fractional regression models for second stage DEA efficiency analyses," Journal of Productivity Analysis, Springer, vol. 34(3), pages 239-255, December.
    3. Musa Hasen Ahmed & Aemro Tazeze & Alem Mezgebo & Eden Andualem, 2018. "Measuring maize production efficiency in the eastern Ethiopia: Stochastic frontier approach," African Journal of Science, Technology, Innovation and Development, Taylor & Francis Journals, vol. 10(7), pages 779-786, November.
    4. Alphonse Singbo & Alfons Oude Lansink & Grigorios Emvalomatis, 2014. "Estimating farmers’ productive and marketing inefficiency: an application to vegetable producers in Benin," Journal of Productivity Analysis, Springer, vol. 42(2), pages 157-169, October.
    5. Akamin, Ajapnwa & Bidogeza, Jean-Claude & Minkoua N, Jules René & Afari-Sefa, Victor, 2017. "Efficiency and productivity analysis of vegetable farming within root and tuber-based systems in the humid tropics of Cameroon," MPRA Paper 85329, University Library of Munich, Germany.
    6. Ogundari, Kolawole, 2014. "The Paradigm of Agricultural Efficiency and its Implication on Food Security in Africa: What Does Meta-analysis Reveal?," World Development, Elsevier, vol. 64(C), pages 690-702.
    7. Kailash Chandra Pradhan & Shrabani Mukherjee, 2018. "Examining Technical Efficiency in Indian Agricultural Production Using Production Frontier Model," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 19(1), pages 22-42, March.
    8. Christian Nsiah & Bichaka Fayissa, 2019. "Trends in Agricultural Production Efficiency and their Implications for Food Security in Sub‐Saharan African Countries," African Development Review, African Development Bank, vol. 31(1), pages 28-42, March.
    9. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    10. 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.
    11. Léopold Simar & Paul W. Wilson, 1998. "Sensitivity Analysis of Efficiency Scores: How to Bootstrap in Nonparametric Frontier Models," Management Science, INFORMS, vol. 44(1), pages 49-61, January.
    12. Subodh Kumar & R. Robert Russell, 2002. "Technological Change, Technological Catch-up, and Capital Deepening: Relative Contributions to Growth and Convergence," American Economic Review, American Economic Association, vol. 92(3), pages 527-548, June.
    13. Tadie Mirie Abate & Abebe Birara Dessie & Taye Melese Mekie, 2019. "Technical efficiency of smallholder farmers in red pepper production in North Gondar zone Amhara regional state, Ethiopia," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-18, December.
    14. Florent Kinkingninhoun-Mêdagbé & Aliou Diagne & Franklin Simtowe & Afiavi Agboh-Noameshie & Patrice Adégbola, 2010. "Gender discrimination and its impact on income, productivity, and technical efficiency: evidence from Benin," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 27(1), pages 57-69, March.
    15. Papke, Leslie E & Wooldridge, Jeffrey M, 1996. "Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 619-632, Nov.-Dec..
    16. Massimo Del Gatto & Adriana Di Liberto & Carmelo Petraglia, 2011. "Measuring Productivity," Journal of Economic Surveys, Wiley Blackwell, vol. 25(5), pages 952-1008, December.
    17. Gbaguidi, Ignace., 2020. "Commerce et chaînes de valeur dans les activités porteuses d’emplois (TRAVERA) cas de l’anacarde au Bénin," ILO Working Papers 995076393202676, International Labour Organization.
    18. B.C. Okoye & A. Abass & B. Bachwenkizi & G. Asumugha & B. Alenkhe & R. Ranaivoson & R. Randrianarivelo & N. Rabemanantsoa & I. Ralimanana, 2016. "Differentials in technical efficiency among smallholder cassava farmers in Central Madagascar: A Cobb Douglas stochastic frontier production approach," Cogent Economics & Finance, Taylor & Francis Journals, vol. 4(1), pages 1143345-114, December.
    19. Aziz Karimov & Bola Amoke Awotide & Taiwo Timothy Amos, 2014. "Production and scale efficiency of maize farming households in South-Western Nigeria," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 41(11), pages 1087-1100, November.
    20. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics, Blackwell, vol. 7(3-4), pages 185-208, October.
    21. Kotchikpa G. Lawin & Lota D. Tamini, 2019. "Tenure Security and Farm Efficiency Analysis Correcting for Biases from Observed and Unobserved Variables: Evidence from Benin," Journal of Agricultural Economics, Wiley Blackwell, vol. 70(1), pages 116-134, February.
    22. Anna Gaviglio & Rosalia Filippini & Fabio Albino Madau & Maria Elena Marescotti & Eugenio Demartini, 2021. "Technical efficiency and productivity of farms: a periurban case study analysis," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-18, December.
    23. J. Scott Long & Jeremy Freese, 2006. "Regression Models for Categorical Dependent Variables using Stata, 2nd Edition," Stata Press books, StataCorp LP, edition 2, number long2, March.
    24. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    25. Ousmanou Njikam & Hamidou Azi Alhadji, 2017. "Technical Efficiency among Smallholder Rice Farmers: A Comparative Analysis of Three Agro-ecological Zones in Cameroon," African Development Review, African Development Bank, vol. 29(1), pages 28-43, March.
    26. Birhanu A. Adamie & Tomas Balezentis & Mette Asmild, 2019. "Environmental Production Factors and Efficiency of Smallholder Agricultural Households: Using Non‐parametric Conditional Frontier Methods," Journal of Agricultural Economics, Wiley Blackwell, vol. 70(2), pages 471-487, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cuccia, Tiziana & Guccio, Calogero & Rizzo, Ilde, 2016. "The effects of UNESCO World Heritage List inscription on tourism destinations performance in Italian regions," Economic Modelling, Elsevier, vol. 53(C), pages 494-508.
    2. Galina Besstremyannaya, 2013. "The impact of Japanese hospital financing reform on hospital efficiency: A difference-in-difference approach," The Japanese Economic Review, Japanese Economic Association, vol. 64(3), pages 337-362, September.
    3. Kaffash, Sepideh & Azizi, Roza & Huang, Ying & Zhu, Joe, 2020. "A survey of data envelopment analysis applications in the insurance industry 1993–2018," European Journal of Operational Research, Elsevier, vol. 284(3), pages 801-813.
    4. Justice G. Djokoto & Ferguson K. Gidiglo & Francis Y. Srofenyoh & Kofi Aaron A-O. Agyei-Henaku & Akua A. Afrane Arthur & Charlotte Badu-Prah & John Fry, 2020. "Sectoral and spatio-temporal differentiation in technical efficiency: A meta-regression," Cogent Economics & Finance, Taylor & Francis Journals, vol. 8(1), pages 1773659-177, January.
    5. Latruffe, Laure & Nauges, Celine, 2010. "Converting to organic farming in France: Is there a selection problem?," 120th Seminar, September 2-4, 2010, Chania, Crete 109386, European Association of Agricultural Economists.
    6. Léopold Simar & Paul W. Wilson, 2015. "Statistical Approaches for Non-parametric Frontier Models: A Guided Tour," International Statistical Review, International Statistical Institute, vol. 83(1), pages 77-110, April.
    7. Oleg Badunenko & Daniel J. Henderson & Subal C. Kumbhakar, 2012. "When, where and how to perform efficiency estimation," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 175(4), pages 863-892, October.
    8. Jakub Growiec & Anna Pajor & Dorota Gorniak & Artur Predki, 2015. "The shape of aggregate production functions: evidence from estimates of the World Technology Frontier," Bank i Kredyt, Narodowy Bank Polski, vol. 46(4), pages 299-326.
    9. Varabyova, Yauheniya & Schreyögg, Jonas, 2013. "International comparisons of the technical efficiency of the hospital sector: Panel data analysis of OECD countries using parametric and non-parametric approaches," Health Policy, Elsevier, vol. 112(1), pages 70-79.
    10. Kao, Chiang & Liu, Shiang-Tai, 2009. "Stochastic data envelopment analysis in measuring the efficiency of Taiwan commercial banks," European Journal of Operational Research, Elsevier, vol. 196(1), pages 312-322, July.
    11. Francesco Aiello & Camilla Mastromarco & Angelo Zago, 2011. "Be productive or face decline. On the sources and determinants of output growth in Italian manufacturing firms," Empirical Economics, Springer, vol. 41(3), pages 787-815, December.
    12. Bravo-Ureta, Boris E. & Jara-Rojas, Roberto & Lachaud, Michee A. & Moreira L., Victor H. & Scheierling, Susanne M., 2015. "Water and Farm Efficiency: Insights from the Frontier Literature," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 206076, Agricultural and Applied Economics Association.
    13. Danish Ahmed SIDDIQUI & Qazi Masood AHMED, 2019. "Are institutions a crucial determinant of cross country economic efficiency? A two-stage double bootstrap data envelopment analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(1(618), S), pages 89-114, Spring.
    14. Raul Moragues & Juan Aparicio & Miriam Esteve, 2023. "Ranking the Importance of Variables in a Nonparametric Frontier Analysis Using Unsupervised Machine Learning Techniques," Mathematics, MDPI, vol. 11(11), pages 1-24, June.
    15. Luis R. Murillo‐Zamorano, 2004. "Economic Efficiency and Frontier Techniques," Journal of Economic Surveys, Wiley Blackwell, vol. 18(1), pages 33-77, February.
    16. Massimo Finocchiaro Castro & Calogero Guccio & Ilde Rizzo, 2014. "An assessment of the waste effects of corruption on infrastructure provision," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 21(4), pages 813-843, August.
    17. Bielecki, Andre & Albers, Sönke, 2012. "Eine Analyse der Forschungseffizienz deutscher betriebswirtschaftlicher Fachbereiche basierend auf den Daten des Centrums für Hochschulentwicklung (CHE)," EconStor Preprints 57429, ZBW - Leibniz Information Centre for Economics.
    18. Daraio, Cinzia & Kerstens, Kristiaan & Nepomuceno, Thyago & Sickles, Robin C., 2019. "Empirical Surveys of Frontier Applications: A Meta-Review," Working Papers 19-005, Rice University, Department of Economics.
    19. Manuel Salas-Velasco, 2020. "Measuring and explaining the production efficiency of Spanish universities using a non-parametric approach and a bootstrapped-truncated regression," Scientometrics, Springer;Akadémiai Kiadó, vol. 122(2), pages 825-846, February.
    20. repec:agr:journl:v:1(618):y:2019:i:1(618):p:89-114 is not listed on IDEAS
    21. Charles Henri DiMaria & Chiara Peroni & Francesco Sarracino, 2020. "Happiness Matters: Productivity Gains from Subjective Well-Being," Journal of Happiness Studies, Springer, vol. 21(1), pages 139-160, January.

    More about this item

    Keywords

    Bootstrap; Cashew; Data envelopment analysis; Technical efficiency;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:snbeco:v:2:y:2022:i:12:d:10.1007_s43546-022-00383-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.