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Production technology and technical efficiency: irrigated and rain-fed rice farms in northern Ghana

Author

Listed:
  • Benjamin T. Anang

    () (University of Helsinki)

  • Stefan Bäckman

    (University of Helsinki)

  • Antonios Rezitis

    (University of Helsinki)

Abstract

Abstract The current paper compared the productivity and efficiency of smallholder irrigated and rain-fed rice farms in Northern Ghana using farm household survey data for the 2013/2014 farming season. The authors accounted for self-selection into irrigation using propensity score matching and conducted a formal test of the homogeneous production technology assumption. The authors employed a stochastic production frontier analysis to obtain technology-specific technical efficiency estimates for both farm groups under different methodological assumptions. The empirical results revealed that the irrigation technology was more efficient under the different methodological assumptions. On average, the irrigators were 9.2% points more efficient than the non-irrigators, but the difference in efficiency was larger with self-selection and the wrong assumption of technology type. The results provide useful insights for the transformation of smallholder production systems and reinforce the need for investment in irrigation infrastructure as a poverty alleviation mechanism and means to achieve food security.

Suggested Citation

  • Benjamin T. Anang & Stefan Bäckman & Antonios Rezitis, 2017. "Production technology and technical efficiency: irrigated and rain-fed rice farms in northern Ghana," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 7(1), pages 95-113, April.
  • Handle: RePEc:spr:eurase:v:7:y:2017:i:1:d:10.1007_s40822-016-0060-y
    DOI: 10.1007/s40822-016-0060-y
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    References listed on IDEAS

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    Keywords

    Irrigation technology; Northern Ghana; Propensity score matching; Smallholder farmers; Technical efficiency;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • 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
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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