Econometric analysis of credit and farm resource technical efficiencies’ determinants in Cassava farms in Kogi State, Nigeria: a diagnostic and stochastic frontier aproach

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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