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Explaining Productivity Variation among Smallholder Maize Farmers in Tanzania

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  • Msuya, Elibariki Emmanuel
  • Hisano, Shuji
  • Nariu, Tatsuhiko

Abstract

Using a stochastic frontier production model proposed by Battese and Coelli (1995), the paper estimates the levels of technical efficiency of 233 smallholder maize farmers in Tanzania and provides an empirical analysis of the determinants of inefficiency with the aim of finding way to increase smallholders’ maize production and productivity. Results shows that smallholder productivity is very low and highly variable, ranging form 0.01t/ha to 6.77t/ha, averaging 1.19t/ha. Technical efficiencies of smallholder maize farmers range from 0.011 to 0.910 with a mean of 0.606. Low levels of education, lack of extension services, limited capital, land fragmentation, and unavailability and high input prices are found to have a negative effect on technical efficiency. Smallholder farmers using hand-hoe and farmers with cash incomes outside their farm holdings (petty business) are found to more efficient. However, farmers who use agrochemicals are found to be less efficient. Policy implications drawn from the results include a review of agricultural policy with regard to renewed public support to revamp the agricultural extension system, and interventions towards improving market infrastructure in order to reduce the transaction element in the input and output marketing.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 14626.

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Date of creation: Jul 2008
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Handle: RePEc:pra:mprapa:14626

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Keywords: Productivity variation; smallholder farmers; technical efficiency; maize; tanzania;

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  1. 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.
  2. 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.
  3. 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.
  4. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 7(3-4), October.
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Cited by:
  1. Etim, Nsikak-Abasi A. & Udoh, Edet J., 1. "Identifying Sources Of Efficiency Among Resource Poor Indigenous Vegetable Farmers In Uyo, Nigeria," International Journal of Food and Agricultural Economics (IJFAEC), Niğde University, Faculty of Economics and Administrative Sciences, vol. 2(1).

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