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Productivity Growth of ECOWAS Common Crops: A Tale of Two Competing Frontier Methods of Analysis

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  • Olusegun, Ajetomobi Joshua

Abstract

This study examines productivity growth of 3 ECOWAS crops, namely, rice, cotton and millet, using both Stochastic Frontier Analysis (SFA) and Data Envelopment analysis (DEA). The data cover a 45 year period (1961-2005). Calculations are based on data collected from FAOSTAT database, International Rice research Institute (IRRI) world rice statistics, and international cotton advisory committee database. The results for both SFA and DEA show that (1) there are inefficiencies but productivity progress among ECOWAS member nations producing rice, cotton and millet. (2) Though, magnitudes of the inefficiencies and productivity progress vary across models applied and by segmentation of the data set, there is little or no conflict in the overall results. (3) Technical change has had the greatest impact on productivity, indicating that producers have a tendency to catch-up with the front runners.

Suggested Citation

  • Olusegun, Ajetomobi Joshua, 2012. "Productivity Growth of ECOWAS Common Crops: A Tale of Two Competing Frontier Methods of Analysis," 2012 Eighth AFMA Congress, November 25-29, 2012, Nairobi, Kenya 159404, African Farm Management Association (AFMA).
  • Handle: RePEc:ags:afma12:159404
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    File URL: http://purl.umn.edu/159404
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    References listed on IDEAS

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    1. John Ruggiero & Donald F. Vitaliano, 1999. "Assessing The Efficiency Of Public Schools Using Data Envelopment Analysis And Frontier Regression," Contemporary Economic Policy, Western Economic Association International, vol. 17(3), pages 321-331, July.
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    3. Sipilainen, Timo & Kuosmanen, Timo & Kumbhakar, Subal C., 2008. "Measuring productivity differentials – An application to milk production in Nordic countries," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44277, European Association of Agricultural Economists.
    4. Hjalmarsson, Lennart & Veiderpass, Ann, 1992. " Productivity in Swedish Electricity Retail Distribution," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(0), pages 193-205, Supplemen.
    5. Subhash C. Ray, 1991. "Resource-Use Efficiency in Public Schools: A Study of Connecticut Data," Management Science, INFORMS, vol. 37(12), pages 1620-1628, December.
    6. Tim J. Coelli & D. S. Prasada Rao, 2005. "Total factor productivity growth in agriculture: a Malmquist index analysis of 93 countries, 1980-2000," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 115-134, January.
    7. Chakraborty, Kalyan & Misra, Sukant & Johnson, Phillip, 2002. "Cotton Farmers' Technical Efficiency: Stochastic and Nonstochastic Production Function Approaches," Agricultural and Resource Economics Review, Cambridge University Press, vol. 31(02), pages 211-220, October.
    8. Derek Headey & Mohammad Alauddin & D.S. Prasada Rao, 2010. "Explaining agricultural productivity growth: an international perspective," Agricultural Economics, International Association of Agricultural Economists, vol. 41(1), pages 1-14, January.
    9. James Odeck, 2007. "Measuring technical efficiency and productivity growth: a comparison of SFA and DEA on Norwegian grain production data," Applied Economics, Taylor & Francis Journals, vol. 39(20), pages 2617-2630.
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    More about this item

    Keywords

    Stochastic Frontier Analysis; Data Envelopment Analysis; Crops; ECOWAS; Crop Production/Industries; Productivity Analysis; C13; C24; O33; O47;

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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