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Farm Size, Modern Technology Adoption, and Efficiency of Small Holdings in Developing Countries: Evidence from Kenya

Author

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  • Dickson M. Nyariki

    (University of Nairobi and South Eastern University College, Kenya)

Abstract

Low efficiency is a problem in most developing agriculture, and is one of the reasons for food insecurity. This paper provides information on smallholder production efficiency in one of the developing Sub-Saharan Countries: Kenya. It applies Data Envelopment Analysis (DEA) to farm-level seasonal panel data. The estimated indexes indicate high levels of inefficiency between farm sizes, seasons, and adopters and non-adopters of 'modern' farming technologies. A comparison of various farming practices shows that use of modern inputs and livestock-based capital could significantly improve farmers' performance. Tobit estimations show that the major factors influencing performance are the level of education, gender, market access and off-farm capital. Thus, policies aimed at improving education, rural infrastructure as well as assuring farmers of income through improved livelihood opportunities, and therefore reduced perceived uncertainty, could improve farm-level efficiency. The findings also provide support for prioritizing issues of farm production associated with women in policymaking.

Suggested Citation

  • Dickson M. Nyariki, 2011. "Farm Size, Modern Technology Adoption, and Efficiency of Small Holdings in Developing Countries: Evidence from Kenya," Journal of Developing Areas, Tennessee State University, College of Business, vol. 45(1), pages 35-52, July-Dece.
    • Handle: RePEc:jda:journl:vol.45:year:2011:issue1:pp:35-52
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    Citations

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    Cited by:

    1. Kassie, Menale & Ndiritu, Simon Wagura & Stage, Jesper, 2014. "What Determines Gender Inequality in Household Food Security in Kenya? Application of Exogenous Switching Treatment Regression," World Development, Elsevier, vol. 56(C), pages 153-171.
    2. Shapiro, Jeremy, 2019. "The impact of recipient choice on aid effectiveness," World Development, Elsevier, vol. 116(C), pages 137-149.
    3. Prakash Kumar Jha & Gerad Middendorf & Aliou Faye & B. Jan Middendorf & P. V. Vara Prasad, 2023. "Lives and Livelihoods in Smallholder Farming Systems of Senegal: Impacts, Adaptation, and Resilience to COVID-19," Land, MDPI, vol. 12(1), pages 1-21, January.
    4. Mwangi wa Githinji & Charalampos Konstantinidis & Andrew Barenberg, 2011. "Small and as Productive : Female Headed Households and the Inverse Relationship between Land Size and Output in Kenya," UMASS Amherst Economics Working Papers 2011-31, University of Massachusetts Amherst, Department of Economics.

    More about this item

    Keywords

    Farm-level technical efficiency; Food security; Smallholder farming; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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