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Estimation of Technical Efficiency in Tanzanian Sugarcane Production: A Case Study of Mtibwa Sugar Estate Outgrowers Scheme

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Author Info
Msuya, Elibariki
Ashimogo, Gasper

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Abstract

This study describes the technical efficiency of sugarcane production and the factors affecting this efficiency. The study was conducted in Turiani Division, Mvomero District, Morogoro Region, Tanzania. Specifically, the study determined and compared the level of technical efficiency of outgrower and non-outgrower farmers, and examined the relationship between levels of efficiency and various specific factors. A cross sectional single-visit survey that included randomly selected representative samples of 140 outgrower and non-outgrower farmers was conducted. To estimate technical efficiency analysis was done using a (FRONTIER Version 4.1) computer program for stochastic frontier production and cost function estimation developed by Coelli, (1996). Technical efficiency was estimated using the Cobb-Douglas production frontier assumed to have a truncated normal distribution. The results of the estimation showed that there were significant positive relationships between age, education, and experience with technical efficiency.

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File URL: http://mpra.ub.uni-muenchen.de/3747/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 3747.

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Date of creation: 2005
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Publication status: Published in Economic and Development Papers, Mzumbe University 1.1(2005): pp. 28-46
Handle: RePEc:pra:mprapa:3747

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Related research
Keywords: Technical efficiency; Outgrowers; Sugarcane; Morogoro; Tanzania;

Find related papers by JEL classification:
Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

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  1. Greene, William H., 1990. "A Gamma-distributed stochastic frontier model," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 141-163. [Downloadable!] (restricted)
  2. 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.
  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. [Downloadable!] (restricted)
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