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An investigation of technical inefficiency of production of farmers under the National Directorate of Employment in Ondo State, Nigeria

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  • Igbekele Ajibefun
  • Abdullahi Abdulkadri

Abstract

This study was carried out to investigate technical inefficiency of production among the food crop farmers of the National Directorate of Employment in Ondo state of Nigeria. The study considers translog stochastic frontier production functions in which the technical inefficiency effects are defined by three different sub models. Given the specifications of the stochastic frontier production function, the null hypothesis, that the frontier is adequately represented by the Cobb-Douglas function, is accepted, but the null hypothesis that the farmers are fully technically efficient, which implies that inefficiency effects are absent from the model, is rejected. Further, the null hypothesis of half-normal distribution for the inefficiency effects is rejected. Predicted technical efficiencies vary widely across farms, ranging between 21.7% anal 87.8% and a mean technical efficiency of 67%.

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  • Igbekele Ajibefun & Abdullahi Abdulkadri, 1999. "An investigation of technical inefficiency of production of farmers under the National Directorate of Employment in Ondo State, Nigeria," Applied Economics Letters, Taylor & Francis Journals, vol. 6(2), pages 111-114.
    • Handle: RePEc:taf:apeclt:v:6:y:1999:i:2:p:111-114
    DOI: 10.1080/135048599353735
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    References listed on IDEAS

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    1. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-444, June.
    2. Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-1248, September.
    3. Kumbhakar, Subal C & Biswas, Basudeb & Bailey, DeeVon, 1989. "A Study of Economic Efficiency of Utah Dairy Farmers: A System Approach," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 595-604, November.
    4. Greene, William H., 1980. "On the estimation of a flexible frontier production model," Journal of Econometrics, Elsevier, vol. 13(1), pages 101-115, May.
    5. Battese, G. E. & Tessema, G. A., 1993. "Estimation of stochastic frontier production functions with time-varying parameters and technical efficiencies using panel data from Indian villages," Agricultural Economics, Blackwell, vol. 9(4), pages 313-333, December.
    6. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
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    Cited by:

    1. Ogundari, Kolawole, 2009. "A Meta-Analysis Of Technical Efficiency In Nigerian Agriculture," 2009 Conference, August 16-22, 2009, Beijing, China 50327, International Association of Agricultural Economists.
    2. Paul Amaza & J. K. Olayemi, 2002. "Analysis of technical inefficiency in food crop production in Gombe State, Nigeria," Applied Economics Letters, Taylor & Francis Journals, vol. 9(1), pages 51-54.
    3. Ana Faria & Paul Fenn & Alistair Bruce, 2005. "Production technologies and technical efficiency: evidence from Portuguese manufacturing industry," Applied Economics, Taylor & Francis Journals, vol. 37(9), pages 1037-1046.
    4. Rouf, Abdur, 2015. "Conventional vs Natural Flood Control and Drainage Managements in a Tidal Coastal Zone: An Evaluation from a Productive Efficiency Perspective," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 256023, Agricultural Economics Society.
    5. Ajibefun, Igbekele A., 2002. "Analysis of Policy Issues in Technical Efficiency of Small Scale Farmers Using the Stochastic Frontier Production Function: With Application to Nigerian Farmers," 13th Congress, Wageningen, The Netherlands, July 7-12, 2002 7015, International Farm Management Association.
    6. Ajibefun, Igbekele A., 2006. "Linking Socio-Economic and Policy Variables to Technical Efficiency of Traditional Agricultural Production: Empirical Evidence from Nigeria," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25535, International Association of Agricultural Economists.
    7. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
    8. repec:ags:ijamad:147573 is not listed on IDEAS
    9. Balogun, Olubunmi L. & Adeoye, A. & Yusuf, S.A & Akinlade, Roseline J. & Carim-Sanni, A., 2012. "Production Efficiency of Farmers under National Fadama II Project in Oyo State, Nigeria," International Journal of Agricultural Management and Development (IJAMAD), Iranian Association of Agricultural Economics, vol. 2(1), pages 1-14, March.
    10. NDUBUEZE-OGARAKU, Mercy Ebere & ADEYOOLA, Olutola Ayodele & NWIGWE, Cecilia Akuchinyere, 2021. "Determinants Of Technical Efficiency Of Small-Holders Yam Farmers In Nigeria," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 24(1), March.
    11. Igbekele Ajibefun & Adebiyi Daramola & Abiodun Falusi, 2006. "Technical efficiency of small scale farmers: An application of the stochastic frontier production function to rural and urban farmers in Ondo State, Nigeria," International Economic Journal, Taylor & Francis Journals, vol. 20(1), pages 87-107.

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