Kumpulan Jurnal Nasional & Internasional
|Estimating Technical Efficiency, Input substitution and complementary effects using Output Distance Function: A study of Cassava production in igeria|
|1Ogundari, K. and Brümmer B.2|
ABSTRAK: In this study, we estimate an output distance function in the context of a multi-output
and multi-input production technology by stochastic frontier techniques. Unbalanced panel data for smallholder farms that grown cassava and other crops in Southwestern igeria covering 2006/07 to 2008/09 farming seasons is used for the analysis. The results show that the marginal rate of transformation (MRT) between “other crops” grown by the farmers and cassava produced relative to the output mix is negative and significantly different from zero. We observed also that increasing returns-to-scale as well as technical progress characterized cassava production in the region. Furthermore, fertilizer and pesticides are found to have significant substitution effects on cassava production in the sample. We also found evidence that, in pairs, farm size and pesticides, labour and fertilizer as well as fertilizer and pesticides jointly exhibit significant complementary effects on cassava production in the region. An average technical efficiency level of 72.1 percent which implies approximately a 38 percent inefficiency level is observed from the study. Over the seasons, we found significant evidence of an increasing trend in technical efficiency level of the farms. Extension, credit and, occupation (i.e., full time farming) are indentified as efficiency increasing policy variables from the study.
Key words: Cassava, technical efficiency, inputs substitution and complementary effects
Introduction Cassava (manihot esculenta crantz) is a perennial, vegetatively propagated shrub,
grown throughout the lowland tropics. The crop is not only regarded as a benchmark for food security in the sub-Saharan Africa, but is also known as the second most important staple crop after maize, in terms of calorie intake.
African countries produce over 103 million metric tonnes cassava per annum with Nigeria accounting for approximately 35 million metric tons per annum (FAOSTAT, 2009). Nigeria has the largest harvest in the world; three times more than the production level in Brazil and almost double the production level in Thailand and Indonesia.
Cassava constitutes a major item in the crop combination of the most farmers and
1 Institute of Food Economics and Consumption Studies, University of Kiel, Germany (Correspondent author’s email: firstname.lastname@example.org)
2 Dept. of Agricultural Economics & Rural Development, University of Göttingen, Germany
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