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Linking Socio-Economic and Policy Variables to Technical Efficiency of Traditional Agricultural Production: Empirical Evidence from Nigeria

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  • Ajibefun, Igbekele A.
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    Abstract

    The major objective of this study was to analyze and link the level of technical efficiency of Nigerian small-scale farmers to specific farmers' socio-economic and policy variables. Data were collected on 461 food crop farmers selected from five states of Southwestern Nigeria. The selection of respondent farmers was multi-stage and involved random sampling method, stratification as well as purposive sampling. The collected data were analyzed with the use of stochastic frontier production modeling technique. The results show that while farmers socio-economic and policy variables significantly influenced the level of technical efficiency, education has the highest marginal effect on technical efficiency while gender has the least marginal effect. The highest mean technical efficiency of 0.77 occurs among group of farmers within 7-12 years of schooling (secondary school education group) while the least mean technical efficiency (0.54) occurs within the category of farmers with years of schooling within 1-6 years. The findings of the study has a number of policy implications, including the need to formulate and implement agricultural policies that will enable farmers acquire basic education necessary to read, write and understand instructions on application and adoption of new farming innovations.

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    Bibliographic Info

    Paper provided by International Association of Agricultural Economists in its series 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia with number 25535.

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    Date of creation: 2006
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    Handle: RePEc:ags:iaae06:25535

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    Keywords: Traditional agriculture; socio-economic variables; policy variables; Technical efficiency; Nigeria; Productivity Analysis;

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    1. William C. Horrace & Peter Schmidt, 2002. "Confidence Statements for Efficiency Estimates from Stochastic Frontier Models," Econometrics 0206006, EconWPA.
    2. Battese, George E. & Heshmati, Almas & Hjalmarsson, Lennart, 1998. "Efficiency of Labour Use in the Swedish Banking Industry: A Stochastic Frontier Approach," Working Paper Series in Economics and Finance 289, Stockholm School of Economics, revised 13 Apr 1999.
    3. 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.
    4. Adesina, Akinwumi A. & Djato, Kouakou K., 1997. "Relative efficiency of women as farm managers: Profit function analysis in Cote d'Ivoire," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 16(1), March.
    5. 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.
    6. Igbekele Ajibefun & Abdullahi Abdulkadri, 1999. "An investigation of technical inefficiency of production of farmers under the National Directorate of Employment in Ondo State, Nigeria," Applied Economics Letters, Taylor & Francis Journals, vol. 6(2), pages 111-114.
    7. Seyoum, E. T. & Battese, G. E. & Fleming, E. M., 1998. "Technical efficiency and productivity of maize producers in eastern Ethiopia: a study of farmers within and outside the Sasakawa-Global 2000 project," Agricultural Economics, Blackwell, vol. 19(3), pages 341-348, December.
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