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The impact of Migrant Remittances on the Technical Efficiency of Arable Crop Farm Households in South Eastern Nigeria

Author

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  • Iheke, Onwuchekwa Raphael
  • Nwaru, Jude Chukwudi
  • Onyenweaku, C. E.

Abstract

This study was designed to examine the impact of migrant remittances on the technical efficiency smallholder arable crop farm households in South Eastern Nigeria. A multi-stage random sampling technique was used in choosing the sample. Primary data collected from 120 respondents comprising 60 migrants’ remittance receiving households and non receiving households, respectively were used for the study. Data collected through the cost route method were analyzed using multiple regression analysis employing the stochastic frontier production function analysis in a single stage maximum likelihood estimation method and z test statistic. The results of data analyses show that household size, education, farming experience, and farm size were the significant determinants of technical efficiency of the remittance receiving households; while age, years of education and farm size were the significant determinants of technical efficiency of the non-remittance receiving households. The individual technical efficiency indices range from 0.12 - 1.00 for the remittance receiving households with a mean of 0.42 as against 0.10 – 0.98 for the non-remittance receiving households with a mean of 0.53. The t test revealed that the non-remittance receiving households were more technically efficient than the remittance receiving households in the use of farm resources. It was recommended that there is the need to encourage the households to pursue efficiency in resource utilization by exhibiting higher levels of entrepreneurial capabilities. Policies and programmes that could help them increase their efficiency especially the remittance receiving households should be put in place such as would encourage harnessing and optimizing the use of remittance income, as well as reallocation and redistribution of resources.

Suggested Citation

  • Iheke, Onwuchekwa Raphael & Nwaru, Jude Chukwudi & Onyenweaku, C. E., 2013. "The impact of Migrant Remittances on the Technical Efficiency of Arable Crop Farm Households in South Eastern Nigeria," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161263, African Association of Agricultural Economists (AAAE).
    • Handle: RePEc:ags:aaae13:161263
    DOI: 10.22004/ag.econ.161263
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    References listed on IDEAS

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    1. Adams, Richard Jr. & Page, John, 2005. "Do international migration and remittances reduce poverty in developing countries?," World Development, Elsevier, vol. 33(10), pages 1645-1669, October.
    2. Ahortor, Christian R.K. & Adenutsi, Deodat E., 2008. "The impact of remittances on economic growth in small-open developing economies," MPRA Paper 37109, University Library of Munich, Germany.
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