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Allocative Efficiency of Small-Holder Cocoyam Farmers in Anambra State, Nigeria

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  • Okoye, B.C
  • Onyenweaku, C.E
  • Asumugha, G.N

Abstract

This study employed a stochastic frontier translog cost and production functions to measure the level of allocative efficiency and it’s determinants in small-holder cocoyam production in Anambra state, Nigeria. A multi-stage random sampling technique was used to select 120 cocoyam farmers in the state in 2005 from whom input-output data and their prices were obtained using the cost-route approach. The parameters of the stochastic frontier cost function were estimated using the maximum likelihood method. The result of the analysis shows that individual farm level allocative efficiency was about 65%. The study found age and education to be negatively and significantly related to allocative efficiency at 1.0%. Farm size coefficient also had a negative relationship with allocative efficiency and was significant at 5.0%. Fertilizer use and credit access was significant and directly related to allocative efficiency at 5.0% as well as farm experience at 10.0% level of probability. No significant relationship was found between allocative efficiency and extension visit, family size and membership of cooperative societies.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 17362.

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Date of creation: 20 Oct 2006
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Publication status: Published in Agricultural Journal 38.4(2007): pp. 70-81
Handle: RePEc:pra:mprapa:17362

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Keywords: Translog Stochastic Frontier Production Function; Technical Efficiency; Economic Efficiency and Allocative Efficiency;

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References

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  1. Afriat, Sidney N, 1972. "Efficiency Estimation of Production Function," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 13(3), pages 568-98, October.
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Cited by:
  1. Aye, Goodness C. & Mungatana, Eric D., 2010. "Technological Innovation and Efficiency in the Nigerian Maize Sector: Parametric Stochastic and Non-parametic Distance Function Approaches," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa, African Association of Agricultural Economists (AAAE);Agricultural Economics Association of South Afri 95965, African Association of Agricultural Economists (AAAE);Agricultural Economics Association of South Africa (AEASA).
  2. Ukoha, O.O & Okoye, B.C & Emetu, J, 2010. "Analysis of the Determinants of Total Factor Productivity among Small-Holder Cassava Farmers in Ohafia L.G.A of Abia State," MPRA Paper 26125, University Library of Munich, Germany.

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