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Efficiency estimation and its role in policy recommendations: An application to the Kenyan livestock sector

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  • John Kibara Manyeki
  • Balázs Kotosz

Abstract

Livestock represents 12% of Kenya's economy, and an increase in its efficiency can improve development and reduce poverty. A parametric stochastic frontier model was fitted to a large farm‐level cross‐sectional data set to estimate the efficiency levels and the underlying sources of the output's departure from the optimal levels. We found that the overall mean efficiency in most of the production frontier models is fairly high (above 51%) and sensitive to the model choice. The main factors that significantly reduce the inefficiency of livestock production are the length of education, gender and age of the household head, off‐farm income, land ownership, access to market information and number of livestock technologies adopted. The possible policy options at the disposal of policy‐makers are to increase the investment in infrastructural facilities, education and women's and youths' empowerment through capacity building and resource allocation. El sector pecuario representa el 12% de la economía de Kenya, y un aumento de su eficiencia puede mejorar el desarrollo y reducir la pobreza. Se desarrolló un modelo paramétrico de frontera estocástica en un amplio conjunto de datos transversal a escala de granja para estimar los niveles de eficiencia y las fuentes subyacentes de la desviación de la producción de los niveles óptimos. Se encontró que la eficiencia media en general en la mayoría de los modelos de frontera de producción es bastante alta (por encima del 51%) y es sensible al modelo elegido. Los principales factores que reducen significativamente la ineficiencia de la producción pecuaria son la duración de la educación, el sexo y la edad de la persona cabeza de familia, los ingresos no agrícolas, la propiedad de la tierra, el acceso a la información sobre el mercado y el número de tecnologías pecuarias adoptadas. Las posibles opciones de actuación a disposición de los responsables de la formulación de políticas son aumentar la inversión en infraestructura, educación y empoderamiento de las mujeres y los jóvenes mediante el fomento de capacidades y la asignación de recursos. ケニアの経済の12%を占める畜産業の効率化を推進することにより、開発の促進と貧困の減少が可能になる。効率性のレベルとアウトプットの最適値からの逸脱の根本的な原因を推計するための農園レベルの大規模な横断的データセットに、パラメトリックな確率的フロンティアモデルを適合させた。生産フロンティアモデルのほとんどで、全体的な効率性の平均値がかなり高く(51%超)、モデルの選択に感受性であった。畜産生産の非効率性を有意に改善する主な因子は、就学期間、世帯主の性別と年齢、農業以外の収入、土地所有、市場情報へのアクセス、導入した畜産技術の数であった。政策立案者が利用できる政策的な選択肢は、能力開発と資源配分を通して、インフラ施設、教育、女性と若者のエンパワーメントへの投資を増やすことである。

Suggested Citation

  • John Kibara Manyeki & Balázs Kotosz, 2019. "Efficiency estimation and its role in policy recommendations: An application to the Kenyan livestock sector," Regional Science Policy & Practice, Wiley Blackwell, vol. 11(2), pages 367-381, June.
  • Handle: RePEc:bla:rgscpp:v:11:y:2019:i:2:p:367-381
    DOI: 10.1111/rsp3.12197
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    Cited by:

    1. Manyeki John Kibara & Kuria Simon & Rono Julius & Mulei Benson, 2024. "The Levels and Determinants of Profit Efficiency in Fodder Production: A Case of Southern Rangelands of Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(3), pages 2405-2414, March.

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