Type | Journal Article - International Journal of Food and Agricultural Economics |
Title | Factors Affecting Profitability Of Small Scale Farming In Southern Trinidad & Tobago |
Author(s) | |
Volume | 2 |
Issue | 3 |
Publication (Day/Month/Year) | 2014 |
Page numbers | 1-18 |
URL | https://ideas.repec.org/a/ags/ijfaec/186263.html |
Abstract | This study examined several possible factors determining the profitability of small scale crop farmers in Trinidad and Tobago in the Caribbean. Industrial/urban influence on profit efficiency was tested by the creation of a special variable (IFOUR). This variable along with farming and socio-economic variables were incorporated into a translog augmented stochastic profit frontier. The significance of coefficients was tested as well as the calculation of the elasticity of profit with respect to the wage rate. The study found a significant negative impact of wage rates on profitability. Also the age of the farmer negatively affected profitability, while the number of years farming had a positive effect. This latter variable also significantly influenced both the one-sided error and idiosyncratic error terms. However IFOUR measuring industrial/urban influence did not significantly affect the profitability. The farmers had a mean profit efficiency of 48.4%, which was low in international comparisons. |
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