Efficiency of Small-scale Irrigation Farmers in Northern Ghana: A Data Envelopment Analysis Approach

Abdulai Adams, Bedru Balana and Nicole Lefore
Additional contact information
Abdulai Adams: Abdulai Adams (corresponding author) is at the CSIR-Science and Technology Policy Research Institute, Ghana, email: boginah@yahoo.com
Bedru Balana: Bedru Balana is with the International Water Management Institute, Ghana, email: b.bedru@cgiar.org
Nicole Lefore: Nicole Lefore is with the International Water Management Institute, USA, email: n.lefore@cgiar.org

Margin: The Journal of Applied Economic Research, 2020, vol. 14, issue 3, 332-352

Abstract: This study measures and explains technical efficiency (TE), economic efficiency and allocative efficiency of 110 small-scale vegetable farmers practicing various irrigation technologies for increased productivity. We employed the two-stage approach to estimate efficiency scores under constant returns to scale (CRS) and variable returns to scale (VRS) specifications. First, using a linear programming method, efficiency scores of the irrigated vegetable farmers were measured using the data envelopment analysis approach. The results show that about 27.3 per cent of the farmers currently operate on the production possibility frontier and are technically efficient, while 3.6 per cent were found to be both economically and allocatively efficient. The mean TE score for CRS was 50.6 per cent, compared with 78.1 per cent under the VRS. A Tobit regression at the second-stage analysis revealed that gender, experience, health and credit utilization have significant effects on TE. These results are valuable for stakeholders interested in promoting efficiency in smallholder irrigated production. JEL Classification: C14, C61, D24, D61, Q12

Keywords: Data Envelopment Analysis; Efficiency; Irrigation; Northern Ghana; Small-scale Farmers (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:mareco:v:14:y:2020:i:3:p:332-352

DOI: 10.1177/0973801020919840

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