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Smallholders’ Cost Efficiency in Mozambique: Implications for Improved Maize Seed Adoption

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  • Zavale, Helder
  • Mabaya, Edward T.
  • Christy, Ralph D.
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    Abstract

    The objectives of this paper are to estimate cost efficiency and investigate factors influencing the cost efficiency of maize-growing smallholders in Mozambique. The data used in this study came from a national random sample of 4,908 smallholder farmers conducted by the Ministry of Agriculture and Rural Development in 2002. Stochastic cost frontier and self-selection bias methods are used. The results indicate that twelve out of twenty factors are significantly found to be the determining factors influencing the cost efficiency. To enhance the cost efficiency of producing maize, policy makers should put more emphasis on improving rural infrastructures, providing better education, and providing access to credit.

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    Bibliographic Info

    Paper provided by Cornell University, Department of Applied Economics and Management in its series Staff Papers with number 121066.

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    Date of creation: Sep 2005
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    Handle: RePEc:ags:cudasp:121066

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    Keywords: Crop Production/Industries; Farm Management;

    References

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    1. Ali, Farman & Parikh, Ashok & Shah, Mir Kalan, 1996. "Measurement of economic efficiency using the behavioral and stochastic cost frontier approach," Journal of Policy Modeling, Elsevier, vol. 18(3), pages 271-287, June.
    2. Howard, Julie A. & Low, Jan W. & Jeje, Jose Jaime & Boughton, Duncan & Massingue, Jaquelino & Maredia, Mywish K., 2001. "Constraints and Strategies for the Development of the Seed System in Mozambique," Food Security Collaborative Working Papers 56045, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    3. 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.
    4. Binam, Joachim Nyemeck & Tonye, Jean & wandji, Njankoua & Nyambi, Gwendoline & Akoa, Mireille, 2004. "Factors affecting the technical efficiency among smallholder farmers in the slash and burn agriculture zone of Cameroon," Food Policy, Elsevier, vol. 29(5), pages 531-545, October.
    5. Kumbhakar, Subal C & Ghosh, Soumendra & McGuckin, J Thomas, 1991. "A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms," Journal of Business & Economic Statistics, American Statistical Association, vol. 9(3), pages 279-86, July.
    6. Richmond, J, 1974. "Estimating the Efficiency of Production," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 15(2), pages 515-21, June.
    7. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
    8. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
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    Cited by:
    1. Bozoglu, Mehmet & Ceyhan, Vedat, 2007. "Measuring the technical efficiency and exploring the inefficiency determinants of vegetable farms in Samsun province, Turkey," Agricultural Systems, Elsevier, vol. 94(3), pages 649-656, June.

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