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Technical Efficiency of Small Holder Cocoyam Production in Anambra State,Nigeria: A Cobb-Douglas Stochastic Frontier Production Approach


  • Okoye, B.C
  • Onyenweaku, C.E
  • Asumugha, G.N


This study employed a Cobb-Douglas stochastic frontier production function to measure the level of technical efficiency and its determinants in small-holder cocoyam production in Anambra state, Nigeria. A Multi-stage random sampling technique was used to select 120 cocoyam farmers in the state in 2005 from whom input-output data were obtained using the cost-route approach. The parameters of the stochastic frontier production function were estimated using the maximum likelihood method. The study found farm size, labour and fertilizer to be positively and significantly related to output at 5% level of significance. Socio economic determinants influencing technical efficiency directly were farming experiences and credit access at 5% level of significance. Age and farm size were negatively and significantly related to technical efficiency at 5% level of significance. The test of significance using ANOVA showed that there were significant differences in the technical efficiencies among zones.

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  • Okoye, B.C & Onyenweaku, C.E & Asumugha, G.N, 2007. "Technical Efficiency of Small Holder Cocoyam Production in Anambra State,Nigeria: A Cobb-Douglas Stochastic Frontier Production Approach," MPRA Paper 17421, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:17421

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    References listed on IDEAS

    1. Thomas Masterson, 2007. "Productivity, Technical Efficiency, and Farm Size in Paraguayan Agriculture," Economics Working Paper Archive wp_490, Levy Economics Institute.
    2. Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, vol. 38(3), pages 387-399, July.
    3. Fatma Gul Unal, 2008. "Small Is Beautiful: Evidence of an Inverse Relationship between Farm Size and Yield in Turkey," Economics Working Paper Archive wp_551, Levy Economics Institute.
    4. 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.
    5. Barrett, Christopher B., 1996. "On price risk and the inverse farm size-productivity relationship," Journal of Development Economics, Elsevier, vol. 51(2), pages 193-215, December.
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    More about this item


    Cobb-Douglas Stochastic Frontier Production Function and Technical Efficiency.;

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General


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