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An Examination of Profit Inefficiency of Rice Farmers in Northern Ghana

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  • Abdulai, Awudu
  • Huffman, Wallace E.

Abstract

This paper employs a stochastic frontier model to examine profit inefficiency of rice farmers in the Northern Region of Ghana using farm-level survey data. The efficiency index, based on a half-normal distribution of the stochastic error term is related to farm and household characteristics. The empirical results show that farmers' human capitalrepresented by the level of schooling contributes positively to production efficiency, suggesting that investment in farmers' education improves their allocative performance. Access to credit and greater specialization in rice production, are found to be positively related to production efficiency. A farmer's participation in nonfarm employment and being older, however, reduce production efficiency. Farmers located in areas with better facilities like extension services and agricultural input delivery systems also tend to exhibit greaterproduction efficiency

Suggested Citation

  • Abdulai, Awudu & Huffman, Wallace E., 1998. "An Examination of Profit Inefficiency of Rice Farmers in Northern Ghana," ISU General Staff Papers 199801010800001295, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genstf:199801010800001295
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    Cited by:

    1. Thiam, Abdourahmane & Bravo-Ureta, Boris E. & Rivas, Teodoro E., 2001. "Technical efficiency in developing country agriculture: a meta-analysis," Agricultural Economics, Blackwell, vol. 25(2-3), pages 235-243, September.
    2. DZIWORNU, Raymond K. & SARPONG, Daniel B., 2014. "Application Of The Stochastic Profit Frontier Model To Estimate Economic Efficiency In Small-Scale Broiler Production In The Greater Accra Region Of Ghana," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra Provider-Homepage: http://www.roaae.org;Association of Agricultural Economists in Slovakia (APES), vol. 17(2).
    3. Orefi Abu & Johann Kirsten, 2009. "Profit efficiency of small- and medium-scale maize milling enterprises in South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 26(3), pages 353-368.
    4. Chaovanapoonphol, Yaovarate & Battese, George E. & Chang, Hui-Shung (Christie), 2005. "The Impact of Rural Financial Services on the Technical Efficiency of Rice Farmers in the Upper North of Thailand," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137811, Australian Agricultural and Resource Economics Society.

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