Analysis of Allocative Efficiency among Small Scale Farmers in Musanze District, Northern Rwanda

Type Journal Article - European Journal of Academic Essays
Title Analysis of Allocative Efficiency among Small Scale Farmers in Musanze District, Northern Rwanda
Author(s)
Volume 2
Issue 2
Publication (Day/Month/Year) 2015
Page numbers 57-64
URL http://euroessays.org/wp-content/uploads/2015/03/EJAE-248.pdf
Abstract
This article analyses the productive efficiency of small scale farmers coached by DERN (the Development Programme of Ruhengeri
Diocese), in Musanze District, Northern Rwanda. Data used for the analysis were collected among 107 farmers, selected purposively
from the study area. Both descriptive and inferential statistics were used to validate the study objective. A Cobb-Douglas production
function was specified and estimated in the context of agricultural production for small scale farmers. This was complemented with
APP, MPP and TFP. Results from the analysis substantiate that the agricultural production for the study period is positively correlated
to the inputs used, namely labour, fertilizers and seeds as expected. The estimated coefficients were found also highly statistically
significant and these can be relied on for inference (p<0.05). Therefore, it is concluded that these factors contribute significantly to
the production of agricultural crops in the study area. The average physical product (APP) in Kgs is 31.35 for labour, 1.06 for
fertilizers and 9.09 for seeds, and the marginal physical product (MPP) in Kgs is 14.96, 0.27 and 3.18 for labour, fertilizers and seeds
respectively, whereas the total factor productivity (TFP) is 1.47. In view of these results, we recommend that farmers need to adjust
the use of these inputs if more crop productivity is to be achieved.

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