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Technological Innovation and Efficiency in the Nigerian Maize Sector: Parametric Stochastic and Non-parametic Distance Function Approaches

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  • Aye, Goodness C.
  • Mungatana, Eric D.
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    Abstract

    The current food crisis all over the globe has necessitated alternative policy actions by various stakeholders in almost all countries of the world. Consequently, efforts are focused on increased investment in agricultural research and development. The study evaluates impact of technological innovations on estimates of technical, allocative and cost efficiency from a parametric stochastic and non-parametric distance functions. Inefficiency effects are modelled in a second stage endogeniety-corrected Tobit regression model as a function of technological innovation and other policy variables. The results from both approaches show there is substantial technical, allocative and cost inefficiency in maize production and that analysis of technical, allocative and cost efficiency with respect to technological innovation and other policy factors are robust. Our results show that policies aimed at maize technology development and their timely dissemination, improvement in education, access to credit and extension among others could promote technical, allocative and cost efficiency, reduce yield variability, enhance farm income, food security and reduce poverty in Nigeria.

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    Bibliographic Info

    Paper provided by African Association of Agricultural Economists (AAAE) & Agricultural Economics Association of South Africa (AEASA) in its series 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa with number 95965.

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    Date of creation: Sep 2010
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    Handle: RePEc:ags:aaae10:95965

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    Keywords: technology; efficiency; maize; parametric; non-parametric; distance function; Nigeria; Crop Production/Industries;

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    1. Coelli, Tim & Perelman, Sergio, 1999. "A comparison of parametric and non-parametric distance functions: With application to European railways," European Journal of Operational Research, Elsevier, vol. 117(2), pages 326-339, September.
    2. Daniel SolĂ­s & Boris E. Bravo-Ureta & Ricardo E. Quiroga, 2009. "Technical Efficiency among Peasant Farmers Participating in Natural Resource Management Programmes in Central America," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(1), pages 202-219.
    3. Mariano, Marc Jim & Villano, Renato A. & Fleming, Euan M. & Acda, Rachelle, 2010. "Metafrontier Analysis Of Farm-Level Efficiencies And Environmental-Technology Gaps In Philippine Rice Farming," 2010 Conference (54th), February 10-12, 2010, Adelaide, Australia 59099, Australian Agricultural and Resource Economics Society.
    4. Alene, Arega D. & Zeller, Manfred, 2005. "Technology adoption and farmer efficiency in multiple crops production in eastern Ethiopia: A comparison of parametric and non-parametric distance functions," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 6(1), January.
    5. Richard Smith & Richard Blundell, 1983. "An Exogeneity Test for the Simultaneous Equation Tobit Model With an Application to Labour Supply," Working Papers 546, Queen's University, Department of Economics.
    6. Okoye, B.C & Onyenweaku, C.E & Asumugha, G.N, 2006. "Allocative Efficiency of Small-Holder Cocoyam Farmers in Anambra State, Nigeria," MPRA Paper 17362, University Library of Munich, Germany.
    7. Herrero, Ines, 2005. "Different approaches to efficiency analysis. An application to the Spanish Trawl fleet operating in Moroccan waters," European Journal of Operational Research, Elsevier, vol. 167(1), pages 257-271, November.
    8. Alene, Arega D. & Manyong, Victor M. & Gockowski, James, 2006. "The production efficiency of intercropping annual and perennial crops in southern Ethiopia: A comparison of distance functions and production frontiers," Agricultural Systems, Elsevier, vol. 91(1-2), pages 51-70, November.
    9. Anupama, J. & Singh, R.P. & Kumar, Ranjit, 2005. "Technical Efficiency in Maize Production in Madhya Pradesh: Estimation and Implications," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 18(2).
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