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Institutional Environment and Technical Efficiency: A Stochastic Frontier Analysis of Cotton Producers in West Africa

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  • Veronique Theriault
  • Renata Serra

Abstract

type="main" xml:id="jage12049-abs-0001"> This paper examines the effects of the institutional environment on West African cotton farmers’ technical efficiency (TE). First, key aspects of the cotton sector institutional environment are discussed, including input and credit access, and producers’ organisations. Then, a stochastic frontier production function, which incorporates technical inefficiency effects, is applied to farm level data collected in Benin, Burkina Faso and Mali. The survey includes farmers’ evaluations of the cotton sector institutional environment. Results suggest that institutional level features influence producers’ TE, besides farm-level characteristics. Cotton growers who report a negative experience with the joint liability programme, who identify the cotton price mechanism or access to credit as the main constraints to performance, and who cultivate more hectares of cereals are technically more inefficient in producing cotton. Findings suggest that cotton farmers in Mali are less technically efficient in producing cotton than in Burkina Faso and Benin. Agricultural development policies focusing on reducing farmers’ financial stress, particularly through the establishment of adequate price mechanisms (i.e. higher farm-gate prices and timely payments to farmers) and improvement in the input–credit markets should be encouraged to improve TE in West Africa.

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  • Veronique Theriault & Renata Serra, 2014. "Institutional Environment and Technical Efficiency: A Stochastic Frontier Analysis of Cotton Producers in West Africa," Journal of Agricultural Economics, Wiley Blackwell, vol. 65(2), pages 383-405, June.
    • Handle: RePEc:bla:jageco:v:65:y:2014:i:2:p:383-405
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    File URL: http://hdl.handle.net/10.1111/jage.2014.65.issue-2
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    1. Simon Akahoua N'cho & Monique Mourits & Jonne Rodenburg & Alfons Oude Lansink, 2019. "Inefficiency of manual weeding in rainfed rice systems affected by parasitic weeds," Agricultural Economics, International Association of Agricultural Economists, vol. 50(2), pages 151-163, March.
    2. Freitas, Carlos Otavio de & Silva, Felipe de Figueiredo & Braga, Marcelo Jose & Neves, Mateus de Carvalho Reis, 2021. "Rural extension and technical efficiency in the Brazilian agricultural sector," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(2), January.
    3. Narayan, Seema & Bhattacharya, Poulomi, 2019. "Relative export competitiveness of agricultural commodities and its determinants: Some evidence from India," World Development, Elsevier, vol. 117(C), pages 29-47.
    4. Marta Arbelo-Pérez & Pilar Pérez-Gómez & Antonio Arbelo, . "Profit efficiency and its determinants in the agricultural sector: A Bayesian approach," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 0.
    5. Tateishi, Henrique Ryosuke & Bragagnolo, Cassiano & de Faria, Rosane Nunes, 2020. "Economic and environmental efficiencies of greenhouse gases’ emissions under institutional influence," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    6. van Dijk, Michiel & Morley, Tom & Jongeneel, Roel & van Ittersum, Martin & Reidsma, Pytrik & Ruben, Ruerd, 2017. "Disentangling agronomic and economic yield gaps: An integrated framework and application," Agricultural Systems, Elsevier, vol. 154(C), pages 90-99.
    7. Mulugeta Y. Birhanu & Tesfahun Alemayehu & Jasmine E. Bruno & Fasil Getachew Kebede & Emmanuel Babafunso Sonaiya & Ezekiel H. Goromela & Oladeji Bamidele & Tadelle Dessie, 2021. "Technical Efficiency of Traditional Village Chicken Production in Africa: Entry Points for Sustainable Transformation and Improved Livelihood," Sustainability, MDPI, vol. 13(15), pages 1-21, July.
    8. Nguyen-Anh, Tuan & Hoang-Duc, Chinh & Tiet, Tuyen & Nguyen-Van, Phu & To-The, Nguyen, 2022. "Composite effects of human, natural and social capitals on sustainable food-crop farming in Sub-Saharan Africa," Food Policy, Elsevier, vol. 113(C).
    9. Khanal, Uttam & Wilson, Clevo & Shankar, Sriram & Hoang, Viet-Ngu & Lee, Boon, 2018. "Farm performance analysis: Technical efficiencies and technology gaps of Nepalese farmers in different agro-ecological regions," Land Use Policy, Elsevier, vol. 76(C), pages 645-653.
    10. Jules Ngango & Seung Gyu Kim, 2019. "Assessment of Technical Efficiency and Its Potential Determinants among Small-Scale Coffee Farmers in Rwanda," Agriculture, MDPI, vol. 9(7), pages 1-12, July.
    11. Theriault, Veronique & Smale, Melinda, 2021. "The unintended consequences of the fertilizer subsidy program on crop species diversity in Mali," Food Policy, Elsevier, vol. 102(C).
    12. Veronique Theriault & Melinda Smale & Hamza Haider, 2018. "Economic incentives to use fertilizer on maize under differing agro-ecological conditions in Burkina Faso," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(5), pages 1263-1277, October.
    13. Haider, Hamza & Smale, Melinda & Theriault, Veronique, 2018. "Intensification and intrahousehold decisions: Fertilizer adoption in Burkina Faso," World Development, Elsevier, vol. 105(C), pages 310-320.
    14. Tschirley, David L. & Theriault, Veronique, 2013. "On the Institutional Details that Mediate the Impact of Cash Crops on Food Crop Intensification: The Case of Cotton," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151263, Agricultural and Applied Economics Association.
    15. Theriault, Veronique & Smale, Melinda & Haider, Hamza, 2016. "Gender Differences in the Adoption of Cereal Intensification Strategy Sets in Burkina Faso," Food Security International Development Working Papers 245896, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    16. Alia, Didier & Kusunose, Yoko & Theriault, Veronique, 2016. "Land rental, farm investment, productivity, and efficiency in Burkina Faso," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236169, Agricultural and Applied Economics Association.
    17. Takeshima, Hiroyuki & Adesugba, Margaret Abiodun, 2014. "Irrigation potential in Nigeria: Some perspectives based on factor endowments, tropical nature, and patterns in favorable areas:," IFPRI discussion papers 1399, International Food Policy Research Institute (IFPRI).
    18. Danelon, André Felipe & Spolador, Humberto Francisco Silva & Bergtold, Jason Scott, 2023. "The role of productivity and efficiency gains in the sugar-ethanol industry to reduce land expansion for sugarcane fields in Brazil," Energy Policy, Elsevier, vol. 172(C).
    19. Tong, Q. & Swallow, B. & Zhang, L. & Zhang, J., 2018. "Risk Attitude, Technical Efficiency and Adoption: An Integrated Approach to Climate-Smart Rice Production in the Jianghan Plain, China," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277311, International Association of Agricultural Economists.
    20. Sibbir Ahmad & Melinda Smale & Veronique Theriault & Eugenie Maiga, 2023. "Input subsidies and crop diversity on family farms in Burkina Faso," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(1), pages 237-254, February.
    21. Theriault, Veronique & Tschirley, David L., 2014. "How Institutions Mediate the Impact of Cash Cropping on Food Crop Intensification: An Application to Cotton in Sub-Saharan Africa," World Development, Elsevier, vol. 64(C), pages 298-310.
    22. Marta Arbelo-Pérez & Pilar Pérez-Gómez & Antonio Arbelo, 2023. "Profit efficiency and its determinants in the agricultural sector: A Bayesian approach," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(11), pages 436-445.
    23. Muange, Elijah N. & Godecke, Theda & Schwarze, Stefan, 2015. "Effects of social networks on technical efficiency in smallholder agriculture: The case of cereal producers Tanzania," 2015 Conference, August 9-14, 2015, Milan, Italy 230221, International Association of Agricultural Economists.
    24. Theriault, Veronique & Smale, Melinda & Haider, Hamza, 2017. "Maize Yield Response to Fertilizer under Differing Agro-Ecological Conditions in Burkina Faso," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258492, Agricultural and Applied Economics Association.

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