Total Factor Productivity Decomposition for Cotton Growers in the Economic Community of West African States (ECOWAS): 1961-2005
This study investigates the Total Factor Productivity (TFP) growth in the Economic Community of West African States (ECOWAS) cotton and its decomposition to efficiency change and technological progress from 1961-2005, using the stochastic production frontier approach. Calculations are based on panel data of major cotton producers in the region collected from the Food and Agriculture Organization Statistics (FAOSTAT) database, and the international cotton advisory committee database. The data includes cotton output and six input variables comprising land area, labor, seed, capital, time trend and country fixed effects. The 45-year period is divided into two subperiods—1961-1978 and 1979-2005, in order to study the effects of ECOWAS reforms on productivity growth of the crop. The results show that there is potential for efficiency improvements in cotton production in ECOWAS, and the average technical efficiency score for the region is 0.91. The most technically efficient country is Burkina Faso, noted for sustainable cotton support system. A closer look at the TFP in the ECOWAS and pre-ECOWAS subperiods shows larger TFP in the ECOWAS period (1979-2005). In both the pre-ECOWAS and ECOWAS periods, productivity growth in cotton is sustained through technological progress rather than through more efficient use of inputs.
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Volume (Year): VI (2009)
Issue (Month): 2 (April)
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