Estimation and Decomposition of Economic Inefficiency of Maize Producers in Benin: A Directional Distance Function Framework

Raoul Adeguelou, Patrice Y. Adegbola, Alphonse Singbo and Kimseyinga Savadogo

Journal of Agribusiness, 2018, vol. 36, issue 2

Abstract: A directional distance function is used to decompose short-run profit inefficiency into technical, allocative, scale inefficiency and contributions of output and input of maize producers in Benin. The sample consists of 151 maize producers including 42 for improved varieties (IV) and 109 for traditional varieties (TV). Results show that only 33% and 16% of IV and TV producers, respectively, are economically efficient, indicating that most producers present substantial overall inefficiency sources, notably pure technical and allocative inefficiency. Also, decreasing returns to scale characterized maize production. Agricultural extension services need to facilitate the use of IV with high yielding potential by producers.

Keywords: Agribusiness; Crop Production/Industries (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:ags:jloagb:302479

DOI: 10.22004/ag.econ.302479

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