Economic Efficiency of Small-Holder Cocoyam Farmers in Anambra State, Nigeria: A Translog Stochastic Frontier Cost Function Approach

Type Journal Article - Agricultural Journal
Title Economic Efficiency of Small-Holder Cocoyam Farmers in Anambra State, Nigeria: A Translog Stochastic Frontier Cost Function Approach
Author(s)
Volume 2
Issue 4
Publication (Day/Month/Year) 2007
Page numbers 535-541
URL https://mpra.ub.uni-muenchen.de/16284/1/ECONOMIC_EFFICIENCY_OF_SMAL1_1_.pdf
Abstract
This study employed a translog stochastic frontier cost function to measure the level of
economic efficiency and it’s 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 and their prices were
obtained using the cost-route approach. The parameters of the stochastic frontier cost
function were estimated using the maximum likelihood method. The results of the
analysis show that individual farm level technical efficiency was about 59%. The study
found age, education and farm size, to be negatively and highly significantly related to
economic efficiency at 1.0% while fertilizer use and farmer experience were significant
and directly related to economic efficiency at 1.0% and 5.0% levels of probability
respectively. No significant relationship was found between economic efficiency and
extension visit, family size, credit access and membership of cooperative societies.

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