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Determinants of technical efficiencydifferentials amongst small- andmedium-scale farmers in Uganda: Acase of tobacco growers

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  • Marios Obwona.

    (Makerere University, Uganda)

Abstract

It is argued that technical efficiency is determined by individual farm- and farmer-specificcharacteristics. Such characteristics may be divided into two groups – demographiccharacteristics, which dominate the decision making process of the farmer, and socio-economic and institutional characteristics, which influence a farmer’s capacity to applythe decisions at the farm level. The principal objectives of this study are to explore thepotential for improving production efficiencies of farmers and to identify factors thatinfluence such efficiencies.The study uses cross-section data from a sample of 65 small- and medium-scalefarmers. A stochastic production frontier approach is used to estimate the farmer-specifictechnical efficiencies. The estimated efficiencies are then explained by socioeconomicand demographic factors.It is shown that education, credit accessibility and extension services contributepositively towards the improvement of efficiency. These results therefore suggest that ifmore resources are invested in extension services, the availability of credit is improvedand there is less fragmentation of land, then there will be an improvement in technicalefficiency of farmers in Uganda.

Suggested Citation

  • Marios Obwona., 2006. "Determinants of technical efficiencydifferentials amongst small- andmedium-scale farmers in Uganda: Acase of tobacco growers," Working Papers 152, African Economic Research Consortium, Research Department.
    • Handle: RePEc:aer:wpaper:152
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    File URL: ftp://41.215.20.26/RePEc/aer/wpaper/rp152.pdf
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    Cited by:

    1. Francisca Ndinda Muteti & Irine Akite & Taddias Prince Mpofu & Basil Mugonola, 2024. "Determinants of technical efficiency among smallholder upland rice farmers in northern Uganda—a Cobb–Douglas stochastic frontier approach," SN Business & Economics, Springer, vol. 4(1), pages 1-20, January.

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