IDEAS home Printed from https://ideas.repec.org/a/ags/afjare/252460.html
   My bibliography  Save this article

A multi-output production efficiency analysis of commercial banana farms in the Volta region of Ghana: A stochastic distance function approach

Author

Listed:
  • Mensah, Amos
  • Brümmer, Bernhard

Abstract

The banana sector makes a significant contribution to the Ghanaian economy in terms of employment, fiscal revenue and foreign exchange. However, decreasing productivity in the sector, coupled with price volatility, has led to a sharp decline in output. The strong export-oriented nature of the sector requires continuous improvement in productivity to enhance the sector’s competitiveness. The efficient use of production resources through the improvement of farmers’ production efficiency could enhance the competitiveness of the sector in international trade. By means of a stochastic frontier approach, an output distance function estimation technique was used to analyse and explore factors driving productivity in Ghana’s banana sector. The results of the study show that sources of decreasing productivity are closely linked to the effect of current farm production techniques, poor agronomic practices and household-specific attributes.

Suggested Citation

  • Mensah, Amos & Brümmer, Bernhard, 2016. "A multi-output production efficiency analysis of commercial banana farms in the Volta region of Ghana: A stochastic distance function approach," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 11(4), pages 1-12, December.
  • Handle: RePEc:ags:afjare:252460
    DOI: 10.22004/ag.econ.252460
    as

    Download full text from publisher

    File URL: http://ageconsearch.umn.edu/record/252460/files/5.%20Mensah%20_%20Brummer.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Schmidt, Peter, 1988. "Estimation of a fixed-effect Cobb-Douglas system using panel data," Journal of Econometrics, Elsevier, vol. 37(3), pages 361-380, March.
    2. Hung-jen Wang & Peter Schmidt, 2002. "One-Step and Two-Step Estimation of the Effects of Exogenous Variables on Technical Efficiency Levels," Journal of Productivity Analysis, Springer, vol. 18(2), pages 129-144, September.
    3. Bernhard Brümmer & Thomas Glauben & Geert Thijssen, 2002. "Decomposition of Productivity Growth Using Distance Functions: The Case of Dairy Farms in Three European Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 628-644.
    4. O'Donnell, Christopher J. & Coelli, Timothy J., 2005. "A Bayesian approach to imposing curvature on distance functions," Journal of Econometrics, Elsevier, vol. 126(2), pages 493-523, June.
    5. Brummer, B. & Glauben, T. & Lu, W., 2006. "Policy reform and productivity change in Chinese agriculture: A distance function approach," Journal of Development Economics, Elsevier, vol. 81(1), pages 61-79, October.
    6. 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.
    7. Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, vol. 38(3), pages 387-399, July.
    8. Mundlak, Yair, 1996. "Production Function Estimation: Reviving the Primal," Econometrica, Econometric Society, vol. 64(2), pages 431-438, March.
    9. Meeusen, Wim & van den Broeck, J, 1977. "Technical Efficiency and Dimension of the Firm: Some Results on the Use of Frontier Production Functions," Empirical Economics, Springer, vol. 2(2), pages 109-122.
    Full references (including those not matched with items on IDEAS)

    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:afjare:252460. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/aaaeaea.html .

    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 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.