IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/3747.html
   My bibliography  Save this paper

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

Author

Listed:
  • Msuya, Elibariki
  • Ashimogo, Gasper

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.

Suggested Citation

  • Msuya, Elibariki & Ashimogo, Gasper, 2005. "Estimation of Technical Efficiency in Tanzanian Sugarcane Production: A Case Study of Mtibwa Sugar Estate Outgrowers Scheme," MPRA Paper 3747, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:3747
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/3747/1/MPRA_paper_3747.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-444, June.
    2. James E. Kirkley & Dale Squires & Ivar E. Strand, 1995. "Assessing Technical Efficiency in Commercial Fisheries: The Mid-Atlantic Sea Scallop Fishery," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 686-697.
    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 325-332.
    4. Mbilinyi M. & Semakafu M., 1995. "Gender and employment on sugar cane plantations in Tanzania," ILO Working Papers 993105503402676, International Labour Organization.
    5. Basnayake, B.M.J.K. & Gunaratne, L.H.P., 2002. "Estimation of Technical Efficiency and It's Determinants in the Tea Small Holding Sector in the Mid Country Wet Zone of Sri Lanka," Sri Lankan Journal of Agricultural Economics, Sri Lanka Agricultural Economics Association (SAEA), vol. 4, pages 1-15.
    6. Greene, William H., 1990. "A Gamma-distributed stochastic frontier model," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 141-163.
    7. repec:ilo:ilowps:310550 is not listed on IDEAS
    8. 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.
    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. Paul Maganga Nsimbila, 2021. "Productivity and Technical Efficiency Variability among Small-Holder Cotton Farmers in Tanzania," Journal of Public Administration and Governance, Macrothink Institute, vol. 11(2), pages 277293-2772, December.
    2. Mengistu Assefa Wendimu & Arne Henningsen & Tomasz Gerard Czekaj, 2017. "Incentives and moral hazard: plot level productivity of factory-operated and outgrower-operated sugarcane production in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 48(5), pages 549-560, September.
    3. Nyanjong', Oyugi Johana & Lagat, Job, 2012. "Analysis of efficiency in sugarcane production: the case of men and women headed households in SONY sugar out -grower zone, Rongo and Trans-Mara districts, Kenya," MPRA Paper 40796, University Library of Munich, Germany.
    4. Nazir, Adnan & Jariko, Ghulam Ali & Junejo, Mumtaz Ali, 2013. "Factors Affecting Sugarcane Production in Pakistan," MPRA Paper 50359, University Library of Munich, Germany, revised 2013.
    5. Makuya, V. & Ndyetabula, D. & Mpenda, Z., 2018. "cost efficiency of watermelon production in Tanzania," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277128, International Association of Agricultural Economists.
    6. Sandunika Jayakody & Sajitha Dishanka, 2020. "An Estimation of Technical Efficiency of Tea Smallholdings in Ratnapura District of Sri Lanka," Journal of Social and Development Sciences, AMH International, vol. 10(4), pages 1-11.

    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. Julio Peña & Julio Aguirre & René Cerca D'amico, 2004. "Pesca demersal en Chile: eficiencia técnica y escalas de operación," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 19(1), pages 119-160, June.
    2. Sean Pascoe & Parastoo Hassaszahed & Jesper Anderson & Knud Korsbrekke, 2003. "Economic versus physical input measures in the analysis of technical efficiency in fisheries," Applied Economics, Taylor & Francis Journals, vol. 35(15), pages 1699-1710.
    3. Julio Peña-Torres & Michael Basch & Sebastian Vergara, "undated". "EFICIENCIA TÉCNICA Y ESCALAS DE OPERACIÓN EN PESCA PELÁGICA: UN ANÁLISIS DE FRONTERAS ESTOCÁSTICAS (Pesquería Centro-Sur en Chile)," ILADES-UAH Working Papers inv137, Universidad Alberto Hurtado/School of Economics and Business.
    4. Nguyen Hung Anh & Wolfgang Bokelmann & Do Thi Nga & Nguyen Van Minh, 2019. "Toward Sustainability or Efficiency: The Case of Smallholder Coffee Farmers in Vietnam," Economies, MDPI, vol. 7(3), pages 1-25, July.
    5. Sandrine Kablan & Ouidad Yousfi, 2015. "Performance of Islamic Banks across the World: An Empirical Analysis over the Period 2001-2008," International Journal of Empirical Finance, Research Academy of Social Sciences, vol. 4(1), pages 27-46.
    6. Cuéllar Martín, Jaime & Martín-Román, Ángel L. & Moral, Alfonso, 2017. "A composed error model decomposition and spatial analysis of local unemployment," MPRA Paper 79783, University Library of Munich, Germany.
    7. Efthymios G. Tsionas, 2006. "Inference in dynamic stochastic frontier models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(5), pages 669-676, July.
    8. Orea, Luis, 2019. "The Econometric Measurement of Firms’ Efficiency," Efficiency Series Papers 2019/02, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    9. Gholamreza Hajargasht & William E. Griffiths, 2018. "Estimation and testing of stochastic frontier models using variational Bayes," Journal of Productivity Analysis, Springer, vol. 50(1), pages 1-24, October.
    10. Gian Carlo Scarsi, 1999. "Local Electricity Distribution in Italy: Comparative Efficiency Analysis and Methodological Cross-Checking," Working Papers 1999.16, Fondazione Eni Enrico Mattei.
    11. Eduardo Fé & Richard Hofler, 2013. "Count data stochastic frontier models, with an application to the patents–R&D relationship," Journal of Productivity Analysis, Springer, vol. 39(3), pages 271-284, June.
    12. Quoc Ngu Vu, 2002. "Technical Efficiency of Vietnamese Industrial SOEs and Non-SOEs," International and Development Economics Working Papers idec02-6, International and Development Economics.
    13. Zuzana Irsova & Tomas Havranek, 2011. "Bank Efficiency in Transitional Countries: Sensitivity to Stochastic Frontier Design," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 18(2), pages 230-270, December.
    14. William Griffiths & Xiaohui Zhang & Xueyan Zhao, 2014. "Estimation and efficiency measurement in stochastic production frontiers with ordinal outcomes," Journal of Productivity Analysis, Springer, vol. 42(1), pages 67-84, August.
    15. B.C. Okoye & A. Abass & B. Bachwenkizi & G. Asumugha & B. Alenkhe & R. Ranaivoson & R. Randrianarivelo & N. Rabemanantsoa & I. Ralimanana, 2016. "Differentials in technical efficiency among smallholder cassava farmers in Central Madagascar: A Cobb Douglas stochastic frontier production approach," Cogent Economics & Finance, Taylor & Francis Journals, vol. 4(1), pages 1143345-114, December.
    16. Hakan Güneş & Dilem Yıldırım, 2016. "Estimating Cost Efficiency of Turkish Commercial Banks under Unobserved Heterogeneity with Stochastic Frontier Models," ERC Working Papers 1603, ERC - Economic Research Center, Middle East Technical University, revised Mar 2016.
    17. Zuniga-Gonzalez, C.A, 2009. "Analisis de la eficiencia tecnica de la unidad de VPN UNAN-LEON utilizando funcion de produccion stochastic frontier, 2007-2008 [Technical efficiency analysis of the PNV unit UNAN-Leon using produc," MPRA Paper 110950, University Library of Munich, Germany, revised 14 Jan 2009.
    18. William Griffiths & Xiaohui Zhang & Xueyan Zhao, 2010. "A Stochastic Frontier Model for Discrete Ordinal Outcomes: A Health Production Function," Monash Econometrics and Business Statistics Working Papers 3/10, Monash University, Department of Econometrics and Business Statistics.
    19. Richard T. Yao & Gerald E. Shively, 2007. "Technical Change and Productive Efficiency: Irrigated Rice in the Philippines," Asian Economic Journal, East Asian Economic Association, vol. 21(2), pages 155-168, June.
    20. Quang Nguyen & Sean Pascoe & Louisa Coglan & Son Nghiem, 2021. "The sensitivity of efficiency scores to input and other choices in stochastic frontier analysis: an empirical investigation," Journal of Productivity Analysis, Springer, vol. 55(1), pages 31-40, February.

    More about this item

    Keywords

    Technical efficiency; Outgrowers; Sugarcane; Morogoro; Tanzania;
    All these keywords.

    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; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

    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:pra:mprapa:3747. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.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.