IDEAS home Printed from https://ideas.repec.org/p/ags/ifma02/7015.html

Analysis of Policy Issues in Technical Efficiency of Small Scale Farmers Using the Stochastic Frontier Production Function: With Application to Nigerian Farmers

Author

Listed:
  • Ajibefun, Igbekele A.

Abstract

The purpose of this study was to analyse the determinants of technical efficiency of small scale farmers in Nigeria and the effect of policy changes on technical efficiency, using the stochastic frontier methodology. Results of analysis indicates that the farmers have an average farm size of 1.56 hectares. It is also indicated that both family and hired labour were extensively used in farm production. The analysis shows a wide variation in the estimated technical efficiencies, ranging between 0.18 and 0.91, and a mean value of 0.63, indicating a wide room for improvement in the technical efficiency. The results of simulation of policy variables show that the level of technical efficiency would significantly increase with rising level of education and farming experience.

Suggested Citation

  • Ajibefun, Igbekele A., 2002. "Analysis of Policy Issues in Technical Efficiency of Small Scale Farmers Using the Stochastic Frontier Production Function: With Application to Nigerian Farmers," 13th Congress, Wageningen, The Netherlands, July 7-12, 2002 7015, International Farm Management Association.
    • Handle: RePEc:ags:ifma02:7015
    DOI: 10.22004/ag.econ.7015
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/7015/files/cp02aj01.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.7015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Adesina, Akinwumi A. & Djato, Kouakou K., 1997. "Relative efficiency of women as farm managers: Profit function analysis in Cote d'Ivoire," Agricultural Economics, Blackwell, vol. 16(1), pages 47-53, March.
    2. Battese, George E. & Corra, Greg S., 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 21(3), pages 1-11, December.
    3. Igbekele Ajibefun & Abdullahi Abdulkadri, 1999. "An investigation of technical inefficiency of production of farmers under the National Directorate of Employment in Ondo State, Nigeria," Applied Economics Letters, Taylor & Francis Journals, vol. 6(2), pages 111-114.
    4. Faqir Singh Bagi & Cliff J. Huang, 1983. "Estimating Production Technical Efficiency for Individual Farms in Tennessee," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 31(2), pages 249-256, July.
    5. Bravo-Ureta, Boris E. & Pinheiro, António E., 1993. "Efficiency Analysis of Developing Country Agriculture: A Review of the Frontier Function Literature," Agricultural and Resource Economics Review, Cambridge University Press, vol. 22(1), pages 88-101, April.
    6. George E. Battese & Greg S. Corra, 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 21(3), pages 169-179, December.
    7. Kumbhakar, Subal C & Biswas, Basudeb & Bailey, DeeVon, 1989. "A Study of Economic Efficiency of Utah Dairy Farmers: A System Approach," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 595-604, November.
    8. 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.
    9. Akinwumi A. Adesina & Kouakou K. Djato, 1997. "Relative efficiency of women as farm managers: Profit function analysis in Côte d'Ivoire," Agricultural Economics, International Association of Agricultural Economists, vol. 16(1), pages 47-53, March.
    10. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wongnaa, C.A. & Ofori, D., . "Resource-use Efficiency in Cashew Production in Wenchi Municipality, Ghana," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 4(2), pages 1-8.
    2. Ayinde, I.A. & Ashaolu, O.F. & Adewuyi, S.A. & Omosowon, O.B., 2011. "Comparative technical efficiency of pond fish production under two management systems in Abeokuta Metropolis, Ogun State, Nigeria," Nigerian Journal of Agricultural Economics, Nigerian Journal of Agricultural Economics, vol. 2(01).
    3. Wubeneh, Nega & Ehui, Simeon K., 2006. "Technical Efficiency of Smallholder Dairy Farmers in the Central Ethiopian Highlands," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25640, International Association of Agricultural Economists.
    4. Kaine, A.I.N., . "Analysis of crop enterprise combination among small holder farmers in delta north agricultural zone, delta state, Nigeria," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 5(05), pages 1-8.
    5. Mbehoma, Petermus M. & Mutasa, Felician, . "Determinants of Technical Efficiency of Smallholders Dairy Farmers in Njombe District, Tanzania," African Journal of Economic Review, African Journal of Economic Review, vol. 1(2).
    6. Gelaw, Fekadu, 2013. "Inefficiency and Incapability Gaps as Causes of Poverty: A Poverty Line-Augmented Efficiency Analysis Using Stochastic Distance Function," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 8(2), pages 1-45, August.
    7. Thi Minh Chi, Nguyen & Li-Hsien, Chien & Shwu-En, Chen, . "Impact of certification system on smallhold coffee farms’ income distribution in Vietnam," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 5(06), pages 1-13.
    8. Nmadu, Job N. & Simpa, James O., 2014. "Rethinking The Technical Efficiency Of Small Scale Yam Farmers In Nigeria Using Conventional And Non-Conventional Inefficiency Parameters," 2014 Conference (58th), February 4-7, 2014, Port Macquarie, Australia 165866, Australian Agricultural and Resource Economics Society.
    9. El-Rasoul, Ahmed Abou El-Yazid & alomar, Ibrahim Saleh, 2012. "دراسة اقتصادية تحليلية لكفاءة استخدام أنماط الري الحديثة: دراسة ميدانية بمزارع منطقة القصيم [An analytical economic study for the efficiency of water resources use in irrigation, “A field study at ," MPRA Paper 98655, University Library of Munich, Germany.
    10. Kaine, A. I. N., 2015. "Analysis of crop enterprise combination among small holder farmers in delta north agricultural zone, Delta State, Nigeria," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 5(5), pages 116-123, May.
    11. Ogunbameru, A. & Okeowo, T.A., 2013. "Resource Utilization Behaviour Of Cassava Producers In Epe Area Of Lagos State: Stochastic Frontier Production Function Approach," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161530, African Association of Agricultural Economists (AAAE).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tim J. Coelli, 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 219-245, December.
    2. Vangelis Tzouvelekas & Konstantinos Giannakas & Peter Midmore & Konstantinos Mattas, 1997. "Technical efficiency measures for olive-growing farms in Crete, Greece," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 3(2), pages 154-169, May.
    3. García-Suárez, Federico & Pérez-Quesada, Gabriela & Molina, Carlos, . "Rangeland cattle production in Uruguay: Single-output versus multi-output efficiency measures," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 22(01).
    4. Shrabana Tripathi, 2025. "Ownership Structure and Technical Efficiency: Evidence from the Indian Utility Sector," SN Operations Research Forum, Springer, vol. 6(1), pages 1-25, March.
    5. Igbekele Ajibefun & Adebiyi Daramola & Abiodun Falusi, 2006. "Technical efficiency of small scale farmers: An application of the stochastic frontier production function to rural and urban farmers in Ondo State, Nigeria," International Economic Journal, Taylor & Francis Journals, vol. 20(1), pages 87-107.
    6. Rouf, Abdur, "undated". "Conventional vs Natural Flood Control and Drainage Managements in a Tidal Coastal Zone: An Evaluation from a Productive Efficiency Perspective," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 256023, Agricultural Economics Society.
    7. Uvarovsky, Vladimir & Voigt, Peter, 2000. "Russia'S Agriculture: Eight Years In Transition - Convergence Or Divergence Of Regional Efficiency," IAMO Discussion Papers 14891, Institute of Agricultural Development in Transition Economies (IAMO).
    8. Reddy, Mahendra, 2002. "Implication of Tenancy Status on Productivity and Efficiency: Evidence from Fiji," Sri Lankan Journal of Agricultural Economics, Sri Lanka Agricultural Economics Association (SAEA), vol. 4, pages 1-20.
    9. Richard T. Yao & Gerald E. Shively, 2007. "Technical Change and Productive Efficiency: Irrigated Rice in the Philippines," Asian Economic Journal, East Asian Economic Association, vol. 21(2), pages 155-168, June.
    10. Martín Rossi, 2015. "The Econometrics Approach to the Measurement of Efficiency: A Survey," Working Papers 117, Universidad de San Andres, Departamento de Economia, revised Feb 2015.
    11. Tom Kompas & Tuong Nhu Che & R. Quentin Grafton, 2004. "Technical efficiency effects of input controls: evidence from Australia's banana prawn fishery," Applied Economics, Taylor & Francis Journals, vol. 36(15), pages 1631-1641.
    12. Abiodun Adegboye & Olawale Daniel Akinyele, 2022. "Assessing the determinants of government spending efficiency in Africa," Future Business Journal, Springer, vol. 8(1), pages 1-17, December.
    13. Williams, Jonathan, 2004. "Determining management behaviour in European banking," Journal of Banking & Finance, Elsevier, vol. 28(10), pages 2427-2460, October.
    14. Manish Roy & Ritwik Mazumder, 2016. "Technical Efficiency of Fish Catch in Traditional Fishing: A Study in Southern Assam," Journal of Regional Development and Planning, Rajarshi Majumder, vol. 5(1), pages 55-68.
    15. repec:use:tkiwps:3232 is not listed on IDEAS
    16. Tom Kompas, 2001. "Catch, Efficiency and Management: A Stochastic Production Frontier Analysis of the Australian Northern Prawn Fishery," International and Development Economics Working Papers idec01-8, International and Development Economics.
    17. Srinivasulu Rajendran, 2014. "Technical Efficiency of Fruit and Vegetable Producers in Tamil Nadu, India: A Stochastic Frontier Approach," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 11(1), pages 77-93, June.
    18. Emvalomatis, Grigorios & Oude Lansink, Alfons G.J.M. & Stefanou, Spiro E., 2008. "An Examination of the Relationship Between Subsidies on Production and Technical Efficiency in Agriculture: The Case of Cotton Producers in Greece," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6673, European Association of Agricultural Economists.
    19. Lazović-Pita Lejla & Šćeta Lamija, 2021. "A Stochastic Frontier Approach to Measuring Inefficiency of Local Communities in Bosnia and Herzegovina," South East European Journal of Economics and Business, Sciendo, vol. 16(1), pages 18-29, June.
    20. Francisca Pacheco & Rafael Sánchez & Mauricio G. Villena, 2021. "Estimating local government efficiency using a panel data parametric approach: the case of Chilean municipalities," Applied Economics, Taylor & Francis Journals, vol. 53(3), pages 292-314, January.
    21. Rungsuriyawiboon, Supawat & Xiaobing, Wang, 2007. "Recent Evidence On Agricultural Efficiency And Productivity In China: A Metafrontier Approach," IAMO Discussion Papers 90863, Institute of Agricultural Development in Transition Economies (IAMO).

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ifma02:7015. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ifmaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.