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Gum Arabic (Acacia senegal): A dependable ally in Industries and Environment: A stochastic frontier production function analysis

Author

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  • Wuranti, V.
  • Giroh, D.Y.
  • Abubakar, M.
  • Ogwuche, P.

Abstract

This study evaluated the technical efficiency of gum arabic production in selected Local Government Areas of Jigawa and Yobe States of Nigeria .. A total of 166 gum arabic farmers were selected through purposive and simple random sampling techniques. Data collected were analysed using stochastic frontier production function analysis. Results of the analysis indicated that variance parameters of the stochastic frontier production function; sigma squared (82 ) and gamma (y) are significantly different from zero at one percent probability level. This indicated a good fit and correctness of the distributional form assumed for the composite eITor term. Gamma indicates that the systematic influences that are unexplained by the production function are the dominant sources of random error and the estimate (0.96) shows the amount of variation resulting from the technical. inefficiencies of the farmers. The variation in fa1mers' output is due to difference in technical efficiency. The mean technical efficiency (TE) of gum Arabic farmers is 0.97. The findings also shows that 46.67 percent of the farmers have TE index below the mean figure while 53.33 percent attaine1 TE of more than the average. Family and hired.labour are statistically significant at 1 percent level,

Suggested Citation

  • Wuranti, V. & Giroh, D.Y. & Abubakar, M. & Ogwuche, P., 2007. "Gum Arabic (Acacia senegal): A dependable ally in Industries and Environment: A stochastic frontier production function analysis," 2007 Annual NAAE Conference, November 5-8, Bauchi, Nigeria 329373, Nigerian Association of Agricultural Economists.
    • Handle: RePEc:ags:naae07:329373
    DOI: 10.22004/ag.econ.329373
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    Crop Production/Industries;

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