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Technical Efficiency and Production Risk of Maize Production: Evidence from Ghana

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  • Oppong, Boahen Atta
  • Onumah, Edward Ebo
  • Asuming-Brempong, Samuel

Abstract

This paper analyzed maize production efficiency in Ghana due to differences in efficiency. The stochastic frontier model with flexible risk properties is applied with 232 farms from the Brong-Ahafo Region. Findings of the study were the translog model best fits the mean output function, whilst the input variables: seed, herbicide, land, labour and cost of intermediate inputs influenced maize output at decreasing returns to scale. The study also found seed and labor inputs reduced production risk, whilst land and cost of intermediate inputs increased the risk. The average technical efficiency estimate was 62% and the combined farm specific factors explained the variation in technical efficiency. This study concludes, on the average 38% of potential output is lost due to technical inefficiency and production risk in inputs and the use of the best farm practices produce maize efficiently.Â

Suggested Citation

  • Oppong, Boahen Atta & Onumah, Edward Ebo & Asuming-Brempong, Samuel, 2016. "Technical Efficiency and Production Risk of Maize Production: Evidence from Ghana," Asian Journal of Agricultural Extension, Economics & Sociology, Asian Journal of Agricultural Extension, Economics & Sociology, vol. 11(3).
    • Handle: RePEc:ags:ajaees:357264
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    File URL: https://ageconsearch.umn.edu/record/357264/files/Oppong1132016AJAEES26014.pdf
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    References listed on IDEAS

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    1. Ngwenya, S.A. & Battese, George E. & Fleming, Euan M., 1997. "The Relationship Between Farm Size and Technical Inefficiency of Production of Wheat Farmers in the Eastern Free State, Province of South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 36(3), pages 1-20, September.
    2. Munir Ahmad & Ghulam Mustafa Chaudhry & Mohammad Iqbal, 2002. "Wheat Productivity, Efficiency, and Sustainability: A Stochastic Production Frontier Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 41(4), pages 643-663.
    3. Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-1248, September.
    4. Villano, Renato A. & O'Donnell, Christopher J. & Battese, George E., 2005. "An Investigation of Production Risk, Risk Preferences and Technical Efficiency: Evidence From Rainfed Lowland Rice Farms in the Philippines," Working Papers 12953, University of New England, School of Economics.
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