Type | Conference Paper - 14 th Annual Conference of the African Econometric Society based in South Africa, Abuja |
Title | Econometric analysis of credit and farm resource technical efficiencies’ determinants in Cassava farms in Kogi State, Nigeria: a diagnostic and stochastic frontier aproach |
Author(s) | |
Publication (Day/Month/Year) | 2009 |
URL | http://www.africametrics.org/documents/conference09/papers/Onoja_Ibrahim_Achike.pdf |
Abstract | Against the backdrop of reported low efficiency of cassava production in the world’s largest cassava producing country, Nigeria, this study was designed to determine the technical efficiencies of farm credit along with other farm resource inputs in farms within the country’s second largest producer of cassava, Kogi State. A stratified random sampling was used to select 174 cassava farmers from two agricultural zones of the state. Results of their responses to the structured questionnaire items administered were analyzed first using a Cobb-Douglas production function to fit the determinants after which coefficients were subjected to White’s test for heteroscedasticity, Wald Test and Chow’s Break-Point test using E-Views. The farm inefficiencies’ levels and sources were determined by the use of stochastic frontier model using Frontier 3.1 software. Farm credit, farm size, chemical fertilizer quantity applied, labour and seedlings planted were significant determinants at 0.05% & 0.01 levels. An increasing return to scale (4.855) was confirmed among the farms while the overall technical efficiencies were high (81%). A statistically unstable result was obtained across the two zones studied which could not be ascribed to heteroscedasticity. Need for policy interventions in farm credit access, panel data survey to ascertain sources of variation in the various zones, promotion of use of organic fertilizer while adopting improved varieties and enhanced extension contacts were recommended. |
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