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Economic Efficiency of Small-Holder Cocoyam Farmers in Anambra State, Nigeria: A Translog Stochastic Frontier Cost Function Approach

Authors
Disciplines
  • Economics
  • Education
  • Mathematics

Abstract

This study employed a translog stochastic frontier cost function to measure the level of economic 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 results of the analysis show that individual farm level technical efficiency was about 59%. The study found age, education and farm size, to be negatively and highly significantly related to economic efficiency at 1.0% while fertilizer use and farmer experience were significant and directly related to economic efficiency at 1.0% and 5.0% levels of probability respectively. No significant relationship was found between economic efficiency and extension visit, family size, credit access and membership of cooperative societies.

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