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Benin Agriculture Productivity and profitability Measurement

  • Constant, Labintan Adeniyi
  • Shijun, Ding
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    This paper explored the Benin agricultural productivity and profitability under occurred reform since 1961 to 2008. Productivity and profitability has been evaluated using the new approach developed by O’Donnell(2008).In the approach Productivity is obtain using Hick Moorsteen index decomposition into Technical Change, mix Efficiency change and Scale Efficiency Change while Profitability is obtain using productivity and Term of Trade product. To achieved the purpose of this paper, agricultural output-input quantity and prices data have been collected from FAO stat, Benin Country FAO statistical database and Benin National Agricultural Institute Database during the period 1961-2008. All data are computing using the DPIN software developed by O’Donnell (2010). It is found that since the country national independency in 1961, Benin agriculture productivity has decreased. The decreased has been more significant after the sector liberalization while the term of trade has been much improved and profitability increased. This situation explains that after the liberalization, competiveness has decreased and monopolization increased. It can be conclude that most private stakeholder involve in the sector during post liberalization has earn more profit than invest to contribute at the sector productivity growth. The paper indentify that the country doesn’t improved agricultural productivity after the sector liberalization in opposite to the normal figure that liberalization will stimulate technology transfer and development which will improve productivity. The situation will then highlight policies maker to identify news strategy which can help to optimize the production and agriculture resources efficiency.

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    File URL: http://purl.umn.edu/126748
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    Paper provided by International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 126748.

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    Date of creation: Aug 2012
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    Handle: RePEc:ags:iaae12:126748
    Contact details of provider: Web page: http://www.iaae-agecon.org/
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    1. O'Donnell, Christopher J. & Coelli, Timothy J., 2005. "A Bayesian approach to imposing curvature on distance functions," Journal of Econometrics, Elsevier, vol. 126(2), pages 493-523, June.
    2. David K. Lambert & Elliott Parker, 1998. "Productivity in Chinese Provincial Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(3), pages 378-392.
    3. Laurenceson, James & O'Donnell, Christopher, 2014. "New estimates and a decomposition of provincial productivity change in China," China Economic Review, Elsevier, vol. 30(C), pages 86-97.
    4. C.J. O'Donnell, 2010. "Nonparametric Estimates Of The Components Of Productivity And Profitability Change In U.S. Agriculture," CEPA Working Papers Series WP022010, School of Economics, University of Queensland, Australia.
    5. Channing Arndt & Thomas W. Hertel & Paul V. Preckel, 2003. "Bridging the Gap between Partial and Total Factor Productivity Measures Using Directional Distance Functions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 928-942.
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