Factors Influencing Technical Efficiencies among Selected Wheat Farmers in Uasin Gishu District, Kenya
This study examined the factors influencing technical efficiency in wheat farming in Kenya using a stochastic frontier production function in which technical inefficiency effects were assumed to be functions of both socioeconomic characteristics of the farmer and farm-specific characteristics. The paper used random sampling to interview 160 farmers comprising 97 large-scale farmers and 63 small-scale farmers. The results revealed existence of significant levels of technical inefficiencies in wheatproduction, especially among the large-scale farmers. The study found that the magnitude of technical efficiency varied from one farmer to another and ranged from 48.9% to 95.1%, with a mean of 87.2%. This implied that farmers lost close to 13% of the potential output to technical inefficiencies. There was variation depending on the size of farm with small-scale farmers attaining higher technical efficiency than the large-scale farmers. The main factors that influenced the degree of inefficiency were education levels, access to credit, and ownership of the capital equipment. Higher levels of education (12 years and above or secondary and above) significantly reduced inefficiency as did access to credit facilities and owning the farm equipment. The study recommended that farmers be educated on the use of better techniques such as use of certified seeds and application of recommended levels of fertilizer.
|Date of creation:||Nov 2010|
|Contact details of provider:|| Postal: P.O. Box 62882, Nairobi|
Phone: (254-2) 228057
Fax: (254-2) 219308
Web page: http://www.aercafrica.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
- Fulginiti, Lilyan E. & Perrin, Richard K., 1997.
"LDC agriculture: Nonparametric Malmquist productivity indexes,"
Journal of Development Economics,
Elsevier, vol. 53(2), pages 373-390, August.
- Lilyan E. Fulginiti & Richard K. Perrin, 2005. "LDC Agriculture: Non-parametric Malmquist productivity indexes," Development and Comp Systems 0502025, EconWPA.
- Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
- Seyoum, E.T. & Battese, George E. & Fleming, E.M., 1998. "Technical efficiency and productivity of maize producers in eastern Ethiopia: a study of farmers within and outside the Sasakawa-Global 2000 project," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 19(3), December.
- Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
- Bauer, Paul W., 1990. "Recent developments in the econometric estimation of frontiers," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 39-56.
- Seyoum, E. T. & Battese, G. E. & Fleming, E. M., 1998. "Technical efficiency and productivity of maize producers in eastern Ethiopia: a study of farmers within and outside the Sasakawa-Global 2000 project," Agricultural Economics, Blackwell, vol. 19(3), pages 341-348, December.
- Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
- Hung-Jen Wang, 2002. "Heteroscedasticity and Non-Monotonic Efficiency Effects of a Stochastic Frontier Model," Journal of Productivity Analysis, Springer, vol. 18(3), pages 241-253, November.
- Wang, Hung-Jen, 2002. "Heteroscedasticity and non-monotonic efficiency effects of a stochastic frontier model," MPRA Paper 31076, University Library of Munich, Germany.
- Fulginiti, Lilyan E. & Perrin, Richard K., 1998. "Agricultural productivity in developing countries," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 19(1-2), September.
- Fulginiti, Lilyan E. & Perrin, Richard K., 1998. "Agricultural productivity in developing countries," Agricultural Economics, Blackwell, vol. 19(1-2), pages 45-51, September.
- Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, vol. 38(3), pages 387-399, July.
- Almas Heshmati & Yilma Mulugeta, 1996. "Technical efficiency of the Ugandan matoke farms," Applied Economics Letters, Taylor & Francis Journals, vol. 3(7), pages 491-494.
- Greene, William H., 1980. "Maximum likelihood estimation of econometric frontier functions," Journal of Econometrics, Elsevier, vol. 13(1), pages 27-56, May.
- Nin, Alejandro & Arndt, Channing & Preckel, Paul V., 2003. "Is agricultural productivity in developing countries really shrinking? New evidence using a modified nonparametric approach," Journal of Development Economics, Elsevier, vol. 71(2), pages 395-415, August.
- 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.
- Ashok Parikh & Farman Ali & Mir Kalan Shah, 1995. "Measurement of Economic Efficiency in Pakistani Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 675-685.
- Reifschneider, David & Stevenson, Rodney, 1991. "Systematic Departures from the Frontier: A Framework for the Analysis of Firm Inefficiency," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(3), pages 715-723, August.
- Greene, William H., 1990. "A Gamma-distributed stochastic frontier model," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 141-163.
- Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "Multilateral Comparisons of Output, Input, and Productivity Using Superlative Index Numbers," Economic Journal, Royal Economic Society, vol. 92(365), pages 73-86, March. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:aer:rpaper:rp_206. 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: (Steven Kinuthia)
If references are entirely missing, you can add them using this form.