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Allocative Efficiency of Small-Holder Cocoyam Farmers in Anambra State, Nigeria

Author

Listed:
  • Okoye, B.C
  • Onyenweaku, C.E
  • Asumugha, G.N

Abstract

This study employed a stochastic frontier translog cost and production functions to measure the level of allocative efficiency and it’s determinants in small-holder cocoyam production in Anambra state, Nigeria. A multi-stage random sampling technique was used to select 120 cocoyam farmers in the state in 2005 from whom input-output data and their prices were obtained using the cost-route approach. The parameters of the stochastic frontier cost function were estimated using the maximum likelihood method. The result of the analysis shows that individual farm level allocative efficiency was about 65%. The study found age and education to be negatively and significantly related to allocative efficiency at 1.0%. Farm size coefficient also had a negative relationship with allocative efficiency and was significant at 5.0%. Fertilizer use and credit access was significant and directly related to allocative efficiency at 5.0% as well as farm experience at 10.0% level of probability. No significant relationship was found between allocative efficiency and extension visit, family size and membership of cooperative societies.

Suggested Citation

  • Okoye, B.C & Onyenweaku, C.E & Asumugha, G.N, 2006. "Allocative Efficiency of Small-Holder Cocoyam Farmers in Anambra State, Nigeria," MPRA Paper 17362, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:17362
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    References listed on IDEAS

    as
    1. Afriat, Sidney N, 1972. "Efficiency Estimation of Production Function," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 13(3), pages 568-598, October.
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    Cited by:

    1. Aye, Goodness C. & Mungatana, Eric D., 2010. "Technological Innovation and Efficiency in the Nigerian Maize Sector: Parametric Stochastic and Non-parametic Distance Function Approaches," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 95965, African Association of Agricultural Economists (AAAE).
    2. Ukoha, O.O & Okoye, B.C & Emetu, J, 2010. "Analysis of the Determinants of Total Factor Productivity among Small-Holder Cassava Farmers in Ohafia L.G.A of Abia State," MPRA Paper 26125, University Library of Munich, Germany.
    3. Sarma, P.K & Ahmed, J.U, 2011. "An economic study of small scale cattle fattening enterprise of Rajbari district," Journal of the Bangladesh Agricultural University, Bangladesh Agricultural University Research System (BAURES), vol. 9.
    4. Gbigbi, Theophilus M. & Enete, Anselm A. & Chude, Stella N., 2015. "Economic efficiency of artisanal fishing households under oil pollution environment in the Niger Delta region of Nigeria," Nigerian Journal of Agricultural Economics, Nigerian Journal of Agricultural Economics, vol. 5(1).
    5. Jirgi, A. J. & Nmadu, J. N. & Jordaan, H. & Gróve, B. & Viljoen, M. F., 2018. "Cost Efficiency of Sorghum/Cowpea Intercropping System in Kebbi State, Nigeria," Nigerian Journal of Agricultural Economics, Nigerian Journal of Agricultural Economics, vol. 8(1), October.
    6. Sarma, P. K. & Ahmed, J. U., 2011. "An economic study of small scale cattle fattening enterprise of Rajbari district," Journal of the Bangladesh Agricultural University, Bangladesh Agricultural University Research System (BAURES), vol. 9.

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    More about this item

    Keywords

    Translog Stochastic Frontier Production Function; Technical Efficiency; Economic Efficiency and Allocative Efficiency;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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