IDEAS home Printed from https://ideas.repec.org/p/ags/saea12/119788.html
   My bibliography  Save this paper

Innovation Systems and Technical Efficiency in Developing-Country Agriculture

Author

Listed:
  • Mekonnen, Dawit Kelemework
  • Spielman, David J.
  • Fonsah, Esendugue Greg

Abstract

The paper uses a stochastic frontier analysis of production functions to estimate the level of technical efficiency in agriculture for a panel of 29 developing countries in Africa and Asia between 1994 and 2000. In addition, the paper examines how different components of an agricultural innovation system interact to determine the estimated technical inefficiencies. Results show that the mean level of technical efficiency among the sampled countries was about 86 percent, with some modest increases during the period in question. These results suggest that there is room for significant increases of production through reallocations of existing resources. Despite significant variation among countries, these results also indicate quite a number of least developed countries have high mean efficiency scores, implying a need to focus on investment that pushes the production frontier outward in these countries. Several measures of agricultural R&D achievement and intensity, along with educational enrollment, are found to enhance agricultural efficiency. On the other hand, countries with higher levels of official development assistance, foreign direct investment, and a greater share of land under irrigation are found to be performing poorly in their agricultural efficiency score.

Suggested Citation

  • Mekonnen, Dawit Kelemework & Spielman, David J. & Fonsah, Esendugue Greg, 2012. "Innovation Systems and Technical Efficiency in Developing-Country Agriculture," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119788, Southern Agricultural Economics Association.
  • Handle: RePEc:ags:saea12:119788
    DOI: 10.22004/ag.econ.119788
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/119788/files/Mekonnen_Spielman__Fonsah_Innovation_and_Efficiency_SAEA_submitted.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Markus Balzat & Horst Hanusch, 2004. "Recent trends in the research on national innovation systems," Journal of Evolutionary Economics, Springer, vol. 14(2), pages 197-210, June.
    2. Pray, Carl E. & Fuglie, Keith O., 2001. "Private Investment In Agricultural Research And International Technology Transfer In Asia," Agricultural Economic Reports 33927, United States Department of Agriculture, Economic Research Service.
    3. Mon‐Chi Lio & Jin‐Li Hu, 2009. "Governance and Agricultural Production Efficiency: A Cross‐Country Aggregate Frontier Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(1), pages 40-61, February.
    4. Byerlee, Derek & Fischer, Ken, 2002. "Accessing Modern Science: Policy and Institutional Options for Agricultural Biotechnology in Developing Countries," World Development, Elsevier, vol. 30(6), pages 931-948, June.
    5. 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.
    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. Bahta, S. & Temoso, O. & Mekonnen, D. & Malope, P. & Staal, S., 2018. "Technical efficiency of beef production in agricultural districts of Botswana: A Latent Class Stochastic Frontier Model Approach," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277207, International Association of Agricultural Economists.
    2. Grovermann, C. & Wossen, T. & Muller, A. & Nichterlein, K., 2018. "Prospects for macro-level analysis of agricultural innovation systems to enhance the eco-efficiency of farming in developing countries," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277416, International Association of Agricultural Economists.
    3. Alexander Semin & Alikhan Kibirov & Usman Rassukhanov, 2018. "Problems and Main Mechanisms to Increase Investment Attractiveness of Agricultural Production," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 378-400.
    4. repec:ags:iaae15:211355 is not listed on IDEAS
    5. Adom, Philip Kofi & Adams, Samuel, 2020. "Decomposition of technical efficiency in agricultural production in Africa into transient and persistent technical efficiency under heterogeneous technologies," World Development, Elsevier, vol. 129(C).
    6. Leonardo, Elias & Dorward, Peter & Garforth, Chris & Sutcliffe, Chloe & Van Hulst, Freddy, 2020. "Conflict-induced displacement as a catalyst for agricultural innovation: Findings from South Sudan," Land Use Policy, Elsevier, vol. 90(C).
    7. Christian Grovermann & Tesfamicheal Wossen & Adrian Muller & Karin Nichterlein, 2019. "Eco-efficiency and agricultural innovation systems in developing countries: Evidence from macro-level analysis," PLOS ONE, Public Library of Science, vol. 14(4), pages 1-16, April.
    8. van Dijk, Michiel & Morley, Tom & Jongeneel, Roel & van Ittersum, Martin & Reidsma, Pytrik & Ruben, Ruerd, 2017. "Disentangling agronomic and economic yield gaps: An integrated framework and application," Agricultural Systems, Elsevier, vol. 154(C), pages 90-99.
    9. Arash Dourandish & Sayed Saghaian & Naser Shahnoushi Forushani & Nazanin Mohammadrezazadeh & Sina Kuhestani, 2020. "The Relation Between Property Rights, Farm Size and Technical Efficiency for the Developing Countries' Agricultural Sector," Journal of International Development, John Wiley & Sons, Ltd., vol. 32(5), pages 749-762, July.
    10. Bachewe, Fantu Nisrane & Koru, Bethelihem & Taffesse, Alemayehu Seyoum, 2015. "Smallholder Teff Productivity and Efficiency: Evidence from High-Potential Districts of Ethiopia," 2015 Conference, August 9-14, 2015, Milan, Italy 212257, International Association of Agricultural Economists.
    11. Xiangyu Guo & Canhui Deng & Dan Wang & Xu Du & Jiali Li & Bowen Wan, 2021. "International Comparison of the Efficiency of Agricultural Science, Technology, and Innovation: A Case Study of G20 Countries," Sustainability, MDPI, Open Access Journal, vol. 13(5), pages 1-16, March.
    12. Gabriel A. Sampaio Morais & Felipe F. Silva & Carlos Otávio de Freitas & Marcelo José Braga, 2021. "Irrigation, Technical Efficiency, and Farm Size: The Case of Brazil," Sustainability, MDPI, Open Access Journal, vol. 13(3), pages 1-21, January.
    13. Bachewe, Fantu Nisrane & Koru, Bethlehem & Taffesse, Alemayehu Seyoum, 2015. "Productivity and efficiency of smallholder teff farmers in Ethiopia:," ESSP working papers 79, International Food Policy Research Institute (IFPRI).
    14. Hall, Andy & Dijkman, Jeroen & Sulaiman, Rasheed, 2010. "Research Into Use: Investigating the Relationship between Agricultural Research and Innovation," MERIT Working Papers 2010-044, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

    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. Tiffany Shih & Brian Wright, 2011. "Agricultural Innovation," NBER Chapters, in: Accelerating Energy Innovation: Insights from Multiple Sectors, pages 49-85, National Bureau of Economic Research, Inc.
    2. Anwar Naseem & David J. Spielman & Steven Were Omamo, 2010. "Private-sector investment in R&D: a review of policy options to promote its growth in developing-country agriculture," Agribusiness, John Wiley & Sons, Ltd., vol. 26(1), pages 143-173.
    3. Rouf, Abdur, 2015. "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.
    4. Spielman, David J., 2007. "Pro-poor agricultural biotechnology: Can the international research system deliver the goods?," Food Policy, Elsevier, vol. 32(2), pages 189-204, April.
    5. Spielman,David J. & Hartwich,Frank & von Grebmer, Klaus, 2007. "Sharing science, building bridges, and enhancing impact: Public-Private Partnerships in the CGIAR," IFPRI discussion papers 708, International Food Policy Research Institute (IFPRI).
    6. Trigo Gamarra, Lucinda, 2008. "The effects of liberalization and deregulation on the performance of financial institutions: The case of the German life insurance market," Thuenen-Series of Applied Economic Theory 93, University of Rostock, Institute of Economics.
    7. Evenson, Robert E. & Kimhi, Ayal & Desilva, Sanjaya, 2000. "Supervision And Transaction Costs: Evidence From Rice Farms In Bicol, The Philippines," 2000 Annual meeting, July 30-August 2, Tampa, FL 21788, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Franz R. Hahn, 2007. "Determinants of Bank Efficiency in Europe. Assessing Bank Performance Across Markets," WIFO Studies, WIFO, number 31499, December.
    9. 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.
    10. Shrimal Perera & Michael Skully & J. Wickramanayake, 2007. "Cost Efficiency in South Asian Banking: The Impact of Bank Size, State Ownership and Stock Exchange Listings," International Review of Finance, International Review of Finance Ltd., vol. 7(1‐2), pages 35-60, March.
    11. Coelli, Tim J., 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 1-27, December.
    12. Lundgren, Tommy & Marklund, Per-Olov & Zhang, Shanshan, 2016. "Industrial energy demand and energy efficiency – Evidence from Sweden," Resource and Energy Economics, Elsevier, vol. 43(C), pages 130-152.
    13. Hailu, Getu & Weersink, Alfons & Minten, Bart J., 2015. "Rural Organizations, Agricultural Technologies and Production Efficiency of Teff in Ethiopia," 2015 Conference, August 9-14, 2015, Milan, Italy 211702, International Association of Agricultural Economists.
    14. Daniel Solís & Boris E. Bravo‐Ureta & Ricardo E. Quiroga, 2009. "Technical Efficiency among Peasant Farmers Participating in Natural Resource Management Programmes in Central America," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(1), pages 202-219, February.
    15. Holtkamp, A.M. & Brummer, B., 2018. "Environmental efficiency of smallholder rubber production," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277518, International Association of Agricultural Economists.
    16. Ruey-Ching Hwang & Jhao-Siang Siao & Huimin Chung & C. Chu, 2011. "Assessing bankruptcy prediction models via information content of technical inefficiency," Journal of Productivity Analysis, Springer, vol. 36(3), pages 263-273, December.
    17. Zuniga Gonzalez, Carlos Alberto, 2009. "Technical efficiency of organic fertilizer in small farms of Nicaragua: 1998-2005," MPRA Paper 49352, University Library of Munich, Germany, revised 24 Sep 2010.
    18. Koetter Michael, 2008. "An Assessment of Bank Merger Success in Germany," German Economic Review, De Gruyter, vol. 9(2), pages 232-264, May.
    19. Giovanni Calice & Levent Kutlu & Ming Zeng, 2021. "Understanding US firm efficiency and its asset pricing implications," Empirical Economics, Springer, vol. 60(2), pages 803-827, February.
    20. Fofack, Hippolyte, 2008. "Technology trap and poverty trap in Sub-Saharan Africa," Policy Research Working Paper Series 4582, The World Bank.

    More about this item

    Keywords

    Agricultural and Food Policy; Crop Production/Industries; Food Security and Poverty; International Development; Production Economics; Productivity Analysis;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:saea12:119788. 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: (AgEcon Search). General contact details of provider: https://edirc.repec.org/data/saeaaea.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.