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Allocative and scale efficiency among maize farmers in Zambia: a zero efficiency stochastic frontier approach

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  • Abdul Nafeo Abdulai
  • Awudu Abdulai

Abstract

The commonly used stochastic frontier model assumes that all firms are inefficient. In this specification, inefficiency is non-negative, and the probability of inefficiency being exactly zero is also zero. To the extent that efficiency varies widely across farms in under-developed economies, it is important to employ techniques that account for both inefficiency and full efficiency to ensure unbiased efficiency estimates. In this study, we employ a zero-inefficiency stochastic frontier model to examine allocative efficiency and scale economies, as well as key determinants of efficiency among Zambian maize farmers. The results show that, unlike the stochastic frontier model, the zero-inefficiency stochastic frontier model successfully allows for both fully efficient and inefficient firms to be accounted for in the estimation procedure. The estimates also reveal the presence of scale economies, with the zero-inefficiency stochastic frontier model better predicting scale efficiency compared to the stochastic frontier model. The findings also show that inefficiency is explained by the level of education, access to extension services, distance to markets and access to credit.

Suggested Citation

  • Abdul Nafeo Abdulai & Awudu Abdulai, 2016. "Allocative and scale efficiency among maize farmers in Zambia: a zero efficiency stochastic frontier approach," Applied Economics, Taylor & Francis Journals, vol. 48(55), pages 5364-5378, November.
    • Handle: RePEc:taf:applec:v:48:y:2016:i:55:p:5364-5378
    DOI: 10.1080/00036846.2016.1176120
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    Cited by:

    1. T. O. Ojo & A. A. Ogundeji & S. C. Babu & T. Alimi, 2020. "Estimating financing gaps in rice production in Southwestern Nigeria," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-18, December.
    2. Cai, Rong & Ma, Jie & Wang, Shujuan & Cai, Shukai, 2024. "Access to credit and scale efficiency: Evidence from family farms in East China," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 1538-1551.
    3. Asante, Bright O. & Temoso, Omphile & Addai, Kwabena N. & Villano, Renato A., 2019. "Evaluating productivity gaps in maize production across different agroecological zones in Ghana," Agricultural Systems, Elsevier, vol. 176(C).
    4. Awudu Abdulai, 2018. "Simon Brand Memorial Address," Agrekon, Taylor & Francis Journals, vol. 57(1), pages 28-39, January.
    5. John N. Ng’ombe, 2017. "Technical efficiency of smallholder maize production in Zambia: a stochastic meta-frontier approach," Agrekon, Taylor & Francis Journals, vol. 56(4), pages 347-365, October.
    6. Bright O. Asante & Renato A. Villano & Omphile Temoso, 2024. "Drivers of integrated crop–livestock farming system’s efficiency for smallholder farmers in the forest-savanna transition agro-ecological zone of Ghana," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(11), pages 29429-29451, November.
    7. Lin, J. & Z. & Zhang, Z., 2018. "Does transportation matter to tobacco leaf producers? Evidence from Guizhou, China," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276998, International Association of Agricultural Economists.
    8. Abdulai, Awudu, 2018. "Simon Brand Memorial Address," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 57(01), April.
    9. Ng’ombe, John N., 2017. "Technical efficiency of smallholder maize production in Zambia: a stochastic meta-frontier approach," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 56(3), December.
    10. Dénis B. Akouwerabou, 2023. "Effect of agricultural extension on cotton farmer's efficiency in arid and semi‐arid areas of Burkina Faso," Natural Resources Forum, Blackwell Publishing, vol. 47(1), pages 42-59, February.
    11. Guha, Pradyut & Mandal, Raju, 2021. "Technical Inefficiency of Maize Farming and Its Determinants in Different Agro-Climatic Regions of Sikkim, India," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 0(Number 2), June.
    12. Ngango, Jules & Seungjee, Hong, 2021. "Examining the Relationship between Farm Size and Technical Efficiency in Rwandan Maize Production," 2021 Conference, August 17-31, 2021, Virtual 314937, International Association of Agricultural Economists.
    13. Zainab Oyetunde-Usman & Kehinde Oluseyi Olagunju, 2019. "Determinants of Food Security and Technical Efficiency among Agricultural Households in Nigeria," Economies, MDPI, vol. 7(4), pages 1-13, October.

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