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Innovation Systems and Technical Efficiency in Developing-Country Agriculture

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  • Mekonnen, Dawit Kelemework
  • Spielman, David J.
  • Fonsah, Esendugue Greg

Abstract

The paper uses a stochastic frontier analysis of production functions to estimate the level of technical efficiency in agriculture for a panel of 29 developing countries in Africa and Asia between 1994 and 2000. In addition, the paper examines how different components of an agricultural innovation system interact to determine the estimated technical inefficiencies. Results show that the mean level of technical efficiency among the sampled countries was about 86 percent, with some modest increases during the period in question. These results suggest that there is room for significant increases of production through reallocations of existing resources. Despite significant variation among countries, these results also indicate quite a number of least developed countries have high mean efficiency scores, implying a need to focus on investment that pushes the production frontier outward in these countries. Several measures of agricultural R&D achievement and intensity, along with educational enrollment, are found to enhance agricultural efficiency. On the other hand, countries with higher levels of official development assistance, foreign direct investment, and a greater share of land under irrigation are found to be performing poorly in their agricultural efficiency score.

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  • Mekonnen, Dawit Kelemework & Spielman, David J. & Fonsah, Esendugue Greg, 2012. "Innovation Systems and Technical Efficiency in Developing-Country Agriculture," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119788, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea12:119788
    DOI: 10.22004/ag.econ.119788
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    Cited by:

    1. Bahta, S. & Temoso, O. & Mekonnen, D. & Malope, P. & Staal, S., 2018. "Technical efficiency of beef production in agricultural districts of Botswana: A Latent Class Stochastic Frontier Model Approach," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277207, International Association of Agricultural Economists.
    2. Christian Grovermann & Sylvain Quiédeville & Adrian Muller & Florian Leiber & Matthias Stolze & Simon Moakes, 2021. "Does organic certification make economic sense for dairy farmers in Europe?–A latent class counterfactual analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 52(6), pages 1001-1012, November.
    3. Hayatullah Ahmadzai, 2022. "Hope for Change: Is Diversifying Production Portfolios an Ideal Strategy to Boost Farming Efficiency in Afghanistan?," Progress in Development Studies, , vol. 22(1), pages 7-31, January.
    4. Grovermann, C. & Wossen, T. & Muller, A. & Nichterlein, K., 2018. "Prospects for macro-level analysis of agricultural innovation systems to enhance the eco-efficiency of farming in developing countries," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277416, International Association of Agricultural Economists.
    5. Alexander Semin & Alikhan Kibirov & Usman Rassukhanov, 2018. "Problems and Main Mechanisms to Increase Investment Attractiveness of Agricultural Production," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 378-400.
    6. repec:ags:iaae15:211355 is not listed on IDEAS
    7. Adom, Philip Kofi & Adams, Samuel, 2020. "Decomposition of technical efficiency in agricultural production in Africa into transient and persistent technical efficiency under heterogeneous technologies," World Development, Elsevier, vol. 129(C).
    8. Xianglong Tang & Chenyu Lu & Peng Meng & Wei Cheng, 2022. "Spatiotemporal Evolution of the Environmental Adaptability Efficiency of the Agricultural System in China," Sustainability, MDPI, vol. 14(6), pages 1-15, March.
    9. Sabrina Auci & Nicolò Barbieri & Manuela Coromaldi & Donatella Vignani, 2021. "Innovation for climate change adaptation and technical efficiency: an empirical analysis in the European agricultural sector," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(2), pages 597-623, July.
    10. Leonardo, Elias & Dorward, Peter & Garforth, Chris & Sutcliffe, Chloe & Van Hulst, Freddy, 2020. "Conflict-induced displacement as a catalyst for agricultural innovation: Findings from South Sudan," Land Use Policy, Elsevier, vol. 90(C).
    11. Christian Grovermann & Tesfamicheal Wossen & Adrian Muller & Karin Nichterlein, 2019. "Eco-efficiency and agricultural innovation systems in developing countries: Evidence from macro-level analysis," PLOS ONE, Public Library of Science, vol. 14(4), pages 1-16, April.
    12. Zhang, Tinglong & Li, Sasa & Li, Yifan & Wang, Weizhong, 2023. "Evaluation of technology innovation efficiency for the listed NEV enterprises in China," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1445-1458.
    13. K Hervé Dakpo & Laure Latruffe & Yann Desjeux & Philippe Jeanneaux, 2024. "Measuring productivity when technology is heterogeneous using a latent class stochastic frontier model," Empirical Economics, Springer, vol. 67(5), pages 2175-2205, November.
    14. Birara Endalew & Adugnaw Anteneh & Kassahun Tasie, 2022. "Technical Efficiency of Teff Production Among Smallholder Farmers: Beta Regression Approach," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(2), pages 1076-1096, April.
    15. van Dijk, Michiel & Morley, Tom & Jongeneel, Roel & van Ittersum, Martin & Reidsma, Pytrik & Ruben, Ruerd, 2017. "Disentangling agronomic and economic yield gaps: An integrated framework and application," Agricultural Systems, Elsevier, vol. 154(C), pages 90-99.
    16. Arash Dourandish & Sayed Saghaian & Naser Shahnoushi Forushani & Nazanin Mohammadrezazadeh & Sina Kuhestani, 2020. "The Relation Between Property Rights, Farm Size and Technical Efficiency for the Developing Countries' Agricultural Sector," Journal of International Development, John Wiley & Sons, Ltd., vol. 32(5), pages 749-762, July.
    17. Bachewe, Fantu Nisrane & Koru, Bethelihem & Taffesse, Alemayehu Seyoum, 2015. "Smallholder Teff Productivity and Efficiency: Evidence from High-Potential Districts of Ethiopia," 2015 Conference, August 9-14, 2015, Milan, Italy 212257, International Association of Agricultural Economists.
    18. Xiangyu Guo & Canhui Deng & Dan Wang & Xu Du & Jiali Li & Bowen Wan, 2021. "International Comparison of the Efficiency of Agricultural Science, Technology, and Innovation: A Case Study of G20 Countries," Sustainability, MDPI, vol. 13(5), pages 1-16, March.
    19. Gabriel A. Sampaio Morais & Felipe F. Silva & Carlos Otávio de Freitas & Marcelo José Braga, 2021. "Irrigation, Technical Efficiency, and Farm Size: The Case of Brazil," Sustainability, MDPI, vol. 13(3), pages 1-21, January.
    20. Bachewe, Fantu Nisrane & Koru, Bethlehem & Taffesse, Alemayehu Seyoum, 2015. "Productivity and efficiency of smallholder teff farmers in Ethiopia:," ESSP working papers 79, International Food Policy Research Institute (IFPRI).
    21. Rees, Charles & Grovermann, Christian & Finger, Robert, 2023. "National organic action plans and organic farmland area growth in Europe," Food Policy, Elsevier, vol. 121(C).
    22. Hall, Andy & Dijkman, Jeroen & Sulaiman, Rasheed, 2010. "Research Into Use: Investigating the Relationship between Agricultural Research and Innovation," MERIT Working Papers 2010-044, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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    Keywords

    Agricultural and Food Policy; Crop Production/Industries; Food Security and Poverty; International Development; Production Economics; Productivity Analysis;
    All these keywords.

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