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A Stochastic Production Investigation of Fish Farms in Ghana

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  • Onumah, Edward E.
  • Acquah, H. de-Graft

Abstract

This paper considers the stochastic production frontier approach to analyse the technical efficiency and its determinants of fish farms in Ghana using a cross-section data of 150 farms. It considers the explicit effects of family and hired labour on production by setting the log-value of the zero-observation of these two sources of labour to zero with dummy variables. Results demonstrate that expected elasticities of mean output with respect to all input variables are positive and significant. Findings also show that family and hired labour used for fish farming in Ghana may be equally productive. Fish farms in Ghana are revealed to be characterised by technology with increasing return to scale. The combined effects of operational and farm specific factors are found to influence efficiency. The study further reveals that inclusion of interaction between some exogenous variables in the inefficiency model is significant in explaining the variation in efficiency. Results also suggest that small pond operators are more efficient than farms with large ponds. Mean technical efficiency is estimated to be 78 percent.

Suggested Citation

  • Onumah, Edward E. & Acquah, H. de-Graft, 2011. "A Stochastic Production Investigation of Fish Farms in Ghana," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 3(2), pages 1-10, June.
    • Handle: RePEc:ags:aolpei:109738
    DOI: 10.22004/ag.econ.109738
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    1. Acquah, H. de-Graft & Onumah, E. E., 2014. "Alternative Approaches to Technical Efficiency Estimation in the Stochastic Frontier Model," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 6(2), pages 1-8, June.
    2. Wirat Krasachat, 2023. "The Effect of Good Agricultural Practices on the Technical Efficiency of Chili Production in Thailand," Sustainability, MDPI, vol. 15(1), pages 1-25, January.
    3. Shaibu, Abdul-Fatawu & Al-Hassan, R. M., 2015. "Accessibility of Rice Farmers to the Ghana School Feeding Programme and its Effect on Output," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 7(3), pages 1-12, September.
    4. Chiaraah Anthony & Mahama Inusah, 2017. "Willingness of Local Rice Producers to Supply and Participate in the Ghana School Feeding Programme Market: A Case Study of Selected Districts in Northern Ghana," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 3(11), pages 257-271, 11-2017.
    5. Oppong, B. A. & Onumah, E. E. & Asuming-Brempong, Samuel, 2014. "Stochastic Frontier Modeling of Maize Production in Brong-Ahafo Region of Ghana," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 6(2), pages 1-9, June.

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    Keywords

    Farm Management; Productivity Analysis;

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