IDEAS home Printed from https://ideas.repec.org/p/ags/saea12/119788.html
   My bibliography  Save this paper

Innovation Systems and Technical Efficiency in Developing-Country Agriculture

Author

Listed:
  • Mekonnen, Dawit Kelemework
  • Spielman, David J.
  • Fonsah, Esendugue Greg

Abstract

The paper uses a stochastic frontier analysis of production functions to estimate the level of technical efficiency in agriculture for a panel of 29 developing countries in Africa and Asia between 1994 and 2000. In addition, the paper examines how different components of an agricultural innovation system interact to determine the estimated technical inefficiencies. Results show that the mean level of technical efficiency among the sampled countries was about 86 percent, with some modest increases during the period in question. These results suggest that there is room for significant increases of production through reallocations of existing resources. Despite significant variation among countries, these results also indicate quite a number of least developed countries have high mean efficiency scores, implying a need to focus on investment that pushes the production frontier outward in these countries. Several measures of agricultural R&D achievement and intensity, along with educational enrollment, are found to enhance agricultural efficiency. On the other hand, countries with higher levels of official development assistance, foreign direct investment, and a greater share of land under irrigation are found to be performing poorly in their agricultural efficiency score.

Suggested Citation

  • Mekonnen, Dawit Kelemework & Spielman, David J. & Fonsah, Esendugue Greg, 2012. "Innovation Systems and Technical Efficiency in Developing-Country Agriculture," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119788, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea12:119788
    DOI: 10.22004/ag.econ.119788
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/119788/files/Mekonnen_Spielman__Fonsah_Innovation_and_Efficiency_SAEA_submitted.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.119788?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
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Robert Evenson, 1974. "The "Green Revolution" in Recent Development Experience," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(2), pages 387-394.
    2. Zvi Griliches, 1963. "Estimates of the Aggregate Agricultural Production Function from Cross-Sectional Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 45(2), pages 419-428.
    3. Pardey, Philip G. & Roseboom, Johannes & Anderson, Jock R., 1991. "Agricultural Research Policy: International Quantitative Perspectives," ISNAR Archive 310674, CGIAR > International Food Policy Research Institute (IFPRI).
    4. Pardey, Philip G. & Roseboom, Johannes, 1989. "ISNAR Agricultural Research Indicator Series: A Global Data Base on National Agricultural Research Systems," ISNAR Archive 310756, CGIAR > International Food Policy Research Institute (IFPRI).
    5. Tim J. Coelli & D. S. Prasada Rao, 2005. "Total factor productivity growth in agriculture: a Malmquist index analysis of 93 countries, 1980–2000," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 115-134, January.
    6. Markus Balzat & Horst Hanusch, 2004. "Recent trends in the research on national innovation systems," Journal of Evolutionary Economics, Springer, vol. 14(2), pages 197-210, June.
    7. World Bank, 2006. "Enhancing Agricultural Innovation," World Bank Publications - Reports 24105, The World Bank Group.
    8. Pray, Carl E. & Fuglie, Keith O., 2001. "Private Investment In Agricultural Research And International Technology Transfer In Asia," Agricultural Economic Reports 33927, United States Department of Agriculture, Economic Research Service.
    9. Mon‐Chi Lio & Jin‐Li Hu, 2009. "Governance and Agricultural Production Efficiency: A Cross‐Country Aggregate Frontier Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(1), pages 40-61, February.
    10. Byerlee, Derek & Fischer, Ken, 2002. "Accessing Modern Science: Policy and Institutional Options for Agricultural Biotechnology in Developing Countries," World Development, Elsevier, vol. 30(6), pages 931-948, June.
    11. World Bank, 2009. "World Development Indicators 2009," World Bank Publications - Books, The World Bank Group, number 4367, December.
    12. 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 325-332.
    13. Mugunieri, Godiah Lawrence & Obare, Gideon A. & Omamo, Steven Were, 2009. "Does the structure of agricultural science and technology policy system matter in developing country agricultural productivity growth trends? Evidence from Kenya and Uganda," 2009 Conference, August 16-22, 2009, Beijing, China 50538, International Association of Agricultural Economists.
    14. Evenson, Robert E & Kislev, Yoav, 1973. "Research and Productivity in Wheat and Maize," Journal of Political Economy, University of Chicago Press, vol. 81(6), pages 1309-1329, Nov.-Dec..
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bahta, S. & Temoso, O. & Mekonnen, D. & Malope, P. & Staal, S., 2018. "Technical efficiency of beef production in agricultural districts of Botswana: A Latent Class Stochastic Frontier Model Approach," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277207, International Association of Agricultural Economists.
    2. Christian Grovermann & Sylvain Quiédeville & Adrian Muller & Florian Leiber & Matthias Stolze & Simon Moakes, 2021. "Does organic certification make economic sense for dairy farmers in Europe?–A latent class counterfactual analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 52(6), pages 1001-1012, November.
    3. Hayatullah Ahmadzai, 2022. "Hope for Change: Is Diversifying Production Portfolios an Ideal Strategy to Boost Farming Efficiency in Afghanistan?," Progress in Development Studies, , vol. 22(1), pages 7-31, January.
    4. Grovermann, C. & Wossen, T. & Muller, A. & Nichterlein, K., 2018. "Prospects for macro-level analysis of agricultural innovation systems to enhance the eco-efficiency of farming in developing countries," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277416, International Association of Agricultural Economists.
    5. Alexander Semin & Alikhan Kibirov & Usman Rassukhanov, 2018. "Problems and Main Mechanisms to Increase Investment Attractiveness of Agricultural Production," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 378-400.
    6. repec:ags:iaae15:211355 is not listed on IDEAS
    7. Adom, Philip Kofi & Adams, Samuel, 2020. "Decomposition of technical efficiency in agricultural production in Africa into transient and persistent technical efficiency under heterogeneous technologies," World Development, Elsevier, vol. 129(C).
    8. Xianglong Tang & Chenyu Lu & Peng Meng & Wei Cheng, 2022. "Spatiotemporal Evolution of the Environmental Adaptability Efficiency of the Agricultural System in China," Sustainability, MDPI, vol. 14(6), pages 1-15, March.
    9. Sabrina Auci & Nicolò Barbieri & Manuela Coromaldi & Donatella Vignani, 2021. "Innovation for climate change adaptation and technical efficiency: an empirical analysis in the European agricultural sector," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(2), pages 597-623, July.
    10. Leonardo, Elias & Dorward, Peter & Garforth, Chris & Sutcliffe, Chloe & Van Hulst, Freddy, 2020. "Conflict-induced displacement as a catalyst for agricultural innovation: Findings from South Sudan," Land Use Policy, Elsevier, vol. 90(C).
    11. Christian Grovermann & Tesfamicheal Wossen & Adrian Muller & Karin Nichterlein, 2019. "Eco-efficiency and agricultural innovation systems in developing countries: Evidence from macro-level analysis," PLOS ONE, Public Library of Science, vol. 14(4), pages 1-16, April.
    12. Birara Endalew & Adugnaw Anteneh & Kassahun Tasie, 2022. "Technical Efficiency of Teff Production Among Smallholder Farmers: Beta Regression Approach," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(2), pages 1076-1096, April.
    13. van Dijk, Michiel & Morley, Tom & Jongeneel, Roel & van Ittersum, Martin & Reidsma, Pytrik & Ruben, Ruerd, 2017. "Disentangling agronomic and economic yield gaps: An integrated framework and application," Agricultural Systems, Elsevier, vol. 154(C), pages 90-99.
    14. Arash Dourandish & Sayed Saghaian & Naser Shahnoushi Forushani & Nazanin Mohammadrezazadeh & Sina Kuhestani, 2020. "The Relation Between Property Rights, Farm Size and Technical Efficiency for the Developing Countries' Agricultural Sector," Journal of International Development, John Wiley & Sons, Ltd., vol. 32(5), pages 749-762, July.
    15. Bachewe, Fantu Nisrane & Koru, Bethelihem & Taffesse, Alemayehu Seyoum, 2015. "Smallholder Teff Productivity and Efficiency: Evidence from High-Potential Districts of Ethiopia," 2015 Conference, August 9-14, 2015, Milan, Italy 212257, International Association of Agricultural Economists.
    16. Xiangyu Guo & Canhui Deng & Dan Wang & Xu Du & Jiali Li & Bowen Wan, 2021. "International Comparison of the Efficiency of Agricultural Science, Technology, and Innovation: A Case Study of G20 Countries," Sustainability, MDPI, vol. 13(5), pages 1-16, March.
    17. Gabriel A. Sampaio Morais & Felipe F. Silva & Carlos Otávio de Freitas & Marcelo José Braga, 2021. "Irrigation, Technical Efficiency, and Farm Size: The Case of Brazil," Sustainability, MDPI, vol. 13(3), pages 1-21, January.
    18. Bachewe, Fantu Nisrane & Koru, Bethlehem & Taffesse, Alemayehu Seyoum, 2015. "Productivity and efficiency of smallholder teff farmers in Ethiopia:," ESSP working papers 79, International Food Policy Research Institute (IFPRI).
    19. Hall, Andy & Dijkman, Jeroen & Sulaiman, Rasheed, 2010. "Research Into Use: Investigating the Relationship between Agricultural Research and Innovation," MERIT Working Papers 2010-044, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

    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. Anwar Naseem & David J. Spielman & Steven Were Omamo, 2010. "Private-sector investment in R&D: a review of policy options to promote its growth in developing-country agriculture," Agribusiness, John Wiley & Sons, Ltd., vol. 26(1), pages 143-173.
    2. Spielman,David J. & Hartwich,Frank & von Grebmer, Klaus, 2007. "Sharing science, building bridges, and enhancing impact: Public-Private Partnerships in the CGIAR," IFPRI discussion papers 708, International Food Policy Research Institute (IFPRI).
    3. Pardey, Philip G. & Alston, Julian M. & Ruttan, Vernon W., 2010. "The Economics of Innovation and Technical Change in Agriculture," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 939-984, Elsevier.
    4. Danilo Đokić & Bojan Matkovski & Marija Jeremić & Ivan Đurić, 2022. "Land Productivity and Agri-Environmental Indicators: A Case Study of Western Balkans," Land, MDPI, vol. 11(12), pages 1-13, December.
    5. Koiry, Subrata & Huang, Wei, 2023. "Do ecological protection approaches affect total factor productivity change of cropland production in Sweden?," Ecological Economics, Elsevier, vol. 209(C).
    6. García-Suarez, Federico, 2021. "Productivity and Efficiency in Uruguay: A Stochastic Approach," 2021 Conference, August 17-31, 2021, Virtual 313805, International Association of Agricultural Economists.
    7. Tiffany Shih & Brian Wright, 2011. "Agricultural Innovation," NBER Chapters, in: Accelerating Energy Innovation: Insights from Multiple Sectors, pages 49-85, National Bureau of Economic Research, Inc.
    8. Alston, Julian M. & Chalfant, James A. & Pardey, Philip G., 1993. "Structural Adjustment In Oecd Agriculture: Government Policies And Technical Change," Working Papers 14473, University of Minnesota, Center for International Food and Agricultural Policy.
    9. Roseboom, Johannes & Pardey, Philip G. & Beintema, Nienke M., 1998. "The changing organizational basis of African agricultural research:," EPTD discussion papers 37, International Food Policy Research Institute (IFPRI).
    10. Fuglie, Keith O. & Rada, Nicholas E., 2013. "Resources, Policies, and Agricultural Productivity in Sub-Saharan Africa," Economic Research Report 145368, United States Department of Agriculture, Economic Research Service.
    11. Jules-Daniel Wurlod & Derek Eaton, 2015. "Chasing After the Frontier in Agricultural Productivity," CIES Research Paper series 37-2015, Centre for International Environmental Studies, The Graduate Institute.
    12. Laurens Klerkx & Andy Hall & Cees Leeuwis, 2009. "Strengthening agricultural innovation capacity: are innovation brokers the answer?," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 8(5/6), pages 409-438.
    13. Koffi Délali Kpognon & Henri Atangana Ondoa & Mamadou Bah & Peter Asare-Nuamah, 2022. "Fostering Labour Productivity Growth for Productive and Decent Job Creation in Sub-Saharan African Countries: the Role of Institutional Quality," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 1962-1992, September.
    14. repec:oup:apecpp:v:40:y:2018:i:3:p:421-444. is not listed on IDEAS
    15. Giannis Karagiannis, 2014. "Modeling issues in applied efficiency analysis: agriculture," Economics and Business Letters, Oviedo University Press, vol. 3(1), pages 12-18.
    16. Spielman, David J., 2007. "Pro-poor agricultural biotechnology: Can the international research system deliver the goods?," Food Policy, Elsevier, vol. 32(2), pages 189-204, April.
    17. Đokić, Danilo & Matkovski, Bojan & Jeremić, Marija & Đurić, Ivan, 2022. "Land productivity and agri-environmental indicators: A case study of Western Balkans," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 11(12), pages 1-13.
    18. ONUCHE, Unekwu & IBITOYE, Stephen Jimoh & ANTHONY, Thomas, 2020. "Profitability And Efficiency Of Bambara Groundnut Production In Nigeria: A Case Study," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 23(2), October.
    19. Timo Goeschl & Timothy Swanson, 2000. "Genetic use restriction technologies and the diffusion of yield gains to developing countries," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(8), pages 1159-1178.
    20. Mugunieri, Godiah Lawrence & Obare, Gideon A. & Omamo, Steven Were, 2009. "Does the structure of agricultural science and technology policy system matter in developing country agricultural productivity growth trends? Evidence from Kenya and Uganda," 2009 Conference, August 16-22, 2009, Beijing, China 50538, International Association of Agricultural Economists.
    21. Qinqin Fan & Tianyuan Mu & Wei Jia, 2021. "Analysis on the Trend and Factors of Total Factor Productivity of Agricultural Export Enterprises in China," Sustainability, MDPI, vol. 13(12), pages 1-14, June.

    More about this item

    Keywords

    Agricultural and Food Policy; Crop Production/Industries; Food Security and Poverty; International Development; Production Economics; Productivity Analysis;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ags:saea12:119788. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/saeaaea.html .

    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.