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Economic efficiency of small farmers in a changing world: A survey of recent evidence

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  • Mubarak Ali
  • Derek Byerlee

Abstract

The growing literature on economic efficiency of farmers in Third World agriculture is reviewed with emphasis on conceptual and methodological issues, and empirical results of studies aimed at measuring technical efficiency. While substantial methodological progress has been made in measuring inefficiency, important conceptual problems remain. Results from regions undergoing rapid technological change suggest substantial technical inefficiencies, of the order of 30 per cent, as well as allocative inefficiencies on the use of purchased inputs. Most studies are able to relate levels of inefficiency to farmers' information and skills, and input supply problems. The results suggest that further improvements in productivity in Green Revolution areas will need to give more emphasis to exploiting the technical efficiency ‘gap’ through adaptive research, extension, farmer education, and improved input supply.

Suggested Citation

  • Mubarak Ali & Derek Byerlee, 1991. "Economic efficiency of small farmers in a changing world: A survey of recent evidence," Journal of International Development, John Wiley & Sons, Ltd., vol. 3(1), pages 1-27.
    • Handle: RePEc:wly:jintdv:v:3:y:1991:i:1:p:1-27
    DOI: 10.1002/jid.4010030102
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    Cited by:

    1. Iskid Jacquet & Jieyong Wang & Jianjun Zhang & Ke Wang & Sen Liang, 2022. "An Understanding of Education in Supporting Cotton Production: An Empirical Study in Benin, West Africa," Agriculture, MDPI, vol. 12(6), pages 1-16, June.
    2. Ali M. Oumer & Michael Burton & Atakelty Hailu & Amin Mugera, 2020. "Sustainable agricultural intensification practices and cost efficiency in smallholder maize farms: Evidence from Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 51(6), pages 841-856, November.
    3. Kalyan Chakraborty & Basudeb Biswas & W. Cris Lewis, 2001. "Measurement of Technical Efficiency in Public Education: A Stochastic and Nonstochastic Production Function Approach," Southern Economic Journal, John Wiley & Sons, vol. 67(4), pages 889-905, April.
    4. Jules R. Siedenburg, 2022. "Local Knowledge and Natural Resource Management in a Peasant Farming Community Facing Rapid Change: A Critical Examination," Papers 2204.04396, arXiv.org.
    5. Squires, Dale & Grafton, R. Quentin & Alam, Mohammed Ferdous & Omar, Ishak Haji, 2003. "Technical efficiency in the Malaysian gill net artisanal fishery," Environment and Development Economics, Cambridge University Press, vol. 8(3), pages 481-504, July.
    6. Hedija Veronika & Fiala Roman & Kuncová Martina, 2017. "Is profitability a good proxy for efficiency? Evidence from the subsector of tour operators," Review of Economic Perspectives, Sciendo, vol. 17(4), pages 425-440, December.
    7. Hailu, Getu & Weersink, Alfons & Minten, Bart, 2018. "Farming practices and productivity," IFPRI book chapters, in: The economics of teff: Exploring Ethiopia’s biggest cash crop, chapter 9, pages 205-235, International Food Policy Research Institute (IFPRI).
    8. repec:aer:wpaper:178 is not listed on IDEAS
    9. Luh, Yir-Hueih, 2017. "The Impact Of Education On Agricultural Productivity: Evidence From East Asian Economies," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 5(4), October.
    10. Bac Ho & Teruaki Nanseki & Yosuke Chomei, 2019. "Profit efficiency of tea farmers: case study of safe and conventional farms in Northern Vietnam," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(4), pages 1695-1713, August.
    11. Sauer, J. & Mendoza-Escalante, A., 2008. "Farming in the Eastern Amazon – Poor but Allocatively Efficient," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 43, March.

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