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Technical Efficiency among Peasant Farmers Participating in Natural Resource Management Programmes in Central America

  • Daniel Solís
  • Boris E. Bravo-Ureta
  • Ricardo E. Quiroga

This study examines the extent to which technical efficiency (TE) is related to activities promoted by two natural resource management programmes recently completed in Central America. Data for a total of 639 farms operating in the hillsides of El Salvador and Honduras are used to estimate a household-level input-oriented stochastic distance frontier simultaneously with a TE effects model. The main finding of this study is that improvements in TE are financially beneficial to farm households while also contributing to environmental sustainability. The results also reveal a positive association between productivity and output diversification, and a positive relationship between TE and off-farm income, human capital and agricultural extension. Copyright (c) 2008 The Authors. Journal compilation (c) 2008 The Agricultural Economics Society.

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Article provided by Wiley Blackwell in its journal Journal of Agricultural Economics.

Volume (Year): 60 (2009)
Issue (Month): 1 ()
Pages: 202-219

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Handle: RePEc:bla:jageco:v:60:y:2009:i:1:p:202-219
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