IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-16-00520.html
   My bibliography  Save this article

Does farm size matter? Investigating scale efficiency of peasant rice farmers in northern Ghana

Author

Listed:
  • Benjamin Tetteh Anang

    () (University of Helsinki)

  • Stefan Bäckman

    () (University of Helsinki)

  • Antonios Rezitis

    () (University of Helsinki)

Abstract

The study assessed the technical and scale efficiency of small-scale rice producers in northern Ghana as well as the effect of farm size on efficiency. Using survey data from 300 farm households, the study employed data envelopment analysis (DEA) to measure efficiency and a bootstrapped truncated regression in the second stage to assess the determinants of efficiency. The results indicated that respondents had overall technical efficiency of 46.6 percent, pure technical efficiency of 65.1 percent and scale efficiency of 69.5 percent. Farm size had a significantly positive effect on scale efficiency with majority of the farms operating at increasing returns to scale. The determinants of efficiency included farm size, gender of the household head, access to credit and irrigation, number of extension visits, the degree of specialization in rice production and location of the farm. Most of the inefficiencies are either technical or scale in nature hence there is justification to increase the scale of production of smaller farms in order to take advantage of unexplored economies of scale. The technically inefficient farmers also need to reduce waste in resource utilization by improving their efficiency of resource use. The authors prescribe other policy measures needed to improve rice production in northern Ghana.

Suggested Citation

  • Benjamin Tetteh Anang & Stefan Bäckman & Antonios Rezitis, 2016. "Does farm size matter? Investigating scale efficiency of peasant rice farmers in northern Ghana," Economics Bulletin, AccessEcon, vol. 36(4), pages 2275-2290.
  • Handle: RePEc:ebl:ecbull:eb-16-00520
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2016/Volume36/EB-16-V36-I4-P220.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Christiaensen, Luc & Demery, Lionel & Kuhl, Jesper, 2011. "The (evolving) role of agriculture in poverty reduction--An empirical perspective," Journal of Development Economics, Elsevier, vol. 96(2), pages 239-254, November.
    2. Basanta R. Dhungana & Peter L. Nuthall & Gilbert V. Nartea, 2004. "Measuring the economic inefficiency of Nepalese rice farms using data envelopment analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 347-369, June.
    3. Coelli, Tim J. & Battese, George E., 1996. "Identification Of Factors Which Influence The Technical Inefficiency Of Indian Farmers," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(02), August.
    4. Nyankomo Marwa & Meshach Aziakpono, 2016. "Technical and scale efficiency of Tanzanian saving and credit cooperatives," Journal of Developing Areas, Tennessee State University, College of Business, vol. 50(1), pages 29-46, January-M.
    5. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    6. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
    7. Giannis Karagiannis & Alexander Sarris, 2005. "Measuring and explaining scale efficiency with the parametric approach: the case of Greek tobacco growers," Agricultural Economics, International Association of Agricultural Economists, vol. 33(s3), pages 441-451, November.
    8. Donald F. Larson & Keijiro Otsuka & Tomoya Matsumoto & Talip Kilic, 2014. "Should African rural development strategies depend on smallholder farms? An exploration of the inverse-productivity hypothesis," Agricultural Economics, International Association of Agricultural Economists, vol. 45(3), pages 355-367, May.
    9. Klaus Deininger & Derek Byerlee & Jonathan Lindsay & Andrew Norton & Harris Selod & Mercedes Stickler, 2011. "Rising Global Interest in Farmland : Can it Yield Sustainable and Equitable Benefits?," World Bank Publications, The World Bank, number 2263, August.
    10. Tim Coelli & Sanzidur Rahman & Colin Thirtle, 2002. "Technical, Allocative, Cost and Scale Efficiencies in Bangladesh Rice Cultivation: A Non-parametric Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(3), pages 607-626.
    11. Bjurek, Hans & Hjalmarsson, Lennart & Forsund, Finn R., 1990. "Deterministic parametric and nonparametric estimation of efficiency in service production : A comparison," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 213-227.
    12. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    13. Aziz Karimov & Bola Amoke Awotide & Taiwo Timothy Amos, 2014. "Production and scale efficiency of maize farming households in South-Western Nigeria," International Journal of Social Economics, Emerald Group Publishing, vol. 41(11), pages 1087-1100, November.
    14. Matchaya, Greenwell C., 2007. "Does size of operated area matter? Evidence from Malawi's agricultural production," MPRA Paper 11948, University Library of Munich, Germany.
    15. Ross, Kara L. & Dalton, Timothy J. & Featherstone, Allen M., 2009. "A Nonparametric Efficiency Analysis of Bean Producers from North and South Kivu," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46575, Southern Agricultural Economics Association.
    16. Hoff, Ayoe, 2007. "Second stage DEA: Comparison of approaches for modelling the DEA score," European Journal of Operational Research, Elsevier, vol. 181(1), pages 425-435, August.
    17. Amin W. Mugera & Allen M. Featherstone, 2008. "Backyard Hog Production Efficiency: Evidence from the Philippines ," Asian Economic Journal, East Asian Economic Association, vol. 22(3), pages 267-287, September.
    18. Aziz Karimov, 2013. "Productive Efficiency of Potato and Melon Growing Farms in Uzbekistan: A Two Stage Double Bootstrap Data Envelopment Analysis," Agriculture, MDPI, Open Access Journal, vol. 3(3), pages 1-13, September.
    19. McErlean, Seamus & Wu, Ziping, 2003. "Regional agricultural labour productivity convergence in China," Food Policy, Elsevier, vol. 28(3), pages 237-252, June.
    20. Benjamin Tetteh Anang & Stefan Bäckman & Timo Sipiläinen, 2016. "Technical efficiency and its determinants in smallholder rice production in northern Ghana," Journal of Developing Areas, Tennessee State University, College of Business, vol. 50(2), pages 311-328.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Data envelopment analysis; farm size; northern Ghana; peasant farming; scale efficiency;

    JEL classification:

    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

    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:ebl:ecbull:eb-16-00520. 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: (John P. Conley). General contact details of provider: .

    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.