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The Determinants of Technical Efficiency of Hazelnut Production in Azerbaijan: An Analysis of the Role of NGOs

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  • Orkhan Guliyev

    (College of Economics and Management, Nanjing Agricultural University, 1 Weigang, Nanjing 210095, China
    China Center for Food Security Studies, Nanjing Agricultural University, Nanjing 210095, China)

  • Aijun Liu

    (College of Economics and Management, Nanjing Agricultural University, 1 Weigang, Nanjing 210095, China
    China Center for Food Security Studies, Nanjing Agricultural University, Nanjing 210095, China)

  • Gershom Endelani Mwalupaso

    (College of Economics and Management, Nanjing Agricultural University, 1 Weigang, Nanjing 210095, China
    China Center for Food Security Studies, Nanjing Agricultural University, Nanjing 210095, China
    Department of Agriculture and Agribusiness, Prince G Academy and Consultancy, Kabwe 10101, Zambia)

  • Jarkko Niemi

    (Natural Resources Institute Finland (Luke), 9 Kampusranta, FI-60320 Seinäjoki, Finland)

Abstract

The role of non-government organizations (NGOs) has been commendable in promoting sustainable farming. Through mobilization of existing resources and provision of training to farmers on various agriculture subjects, NGOs could trigger increased productivity and agricultural sustainability. However, empirical evidence on this claim is limited and no study recognizes the supporting conditions required for NGO intervention to improve productivity. Cross-sectional data from hazelnut farmers in Azerbaijan are used to evaluate the role of NGO intervention in improving farmers’ technical efficiency. To this end, stochastic frontier analysis (SFA) is applied to study hazelnut farmers’ production efficiency. Three different measures are employed to estimate NGO intervention: Training, subsidy and, a combination of training and subsidy. The results indicate that NGO intervention is not significant in influencing technical efficiency. This is attributable to the absence of good organization, innovation orientation, accountability and stakeholder involvement and support which are the necessary supporting conditions facilitating an enabling environment for NGO intervention to improve farmers’ technical efficiency. Therefore, we recommend policy directed at addressing these issues in order to simultaneously enhance farmers’ productivity and improve the functioning of the NGOs. Beyond NGO intervention, encouraging farmers to specialize in hazelnut production and allocating more suitable land for hazelnut production will also improve farmers’ technical efficiency significantly.

Suggested Citation

  • Orkhan Guliyev & Aijun Liu & Gershom Endelani Mwalupaso & Jarkko Niemi, 2019. "The Determinants of Technical Efficiency of Hazelnut Production in Azerbaijan: An Analysis of the Role of NGOs," Sustainability, MDPI, vol. 11(16), pages 1-19, August.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:16:p:4332-:d:256527
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