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Technical Efficiency among Peasant Farmers Participating in Natural Resource Management Programmes in Central America

Daniel Solis (), Boris Bravo-Ureta and Ricardo E. Quiroga

Journal of Agricultural Economics, 2009, vol. 60, issue 1, 202-219

Abstract: This study examines the extent to which technical efficiency (TE) is related to activities promoted by two natural resource management programmes recently completed in Central America. Data for a total of 639 farms operating in the hillsides of El Salvador and Honduras are used to estimate a household-level input-oriented stochastic distance frontier simultaneously with a TE effects model. The main finding of this study is that improvements in TE are financially beneficial to farm households while also contributing to environmental sustainability. The results also reveal a positive association between productivity and output diversification, and a positive relationship between TE and off-farm income, human capital and agricultural extension. Copyright (c) 2008 The Authors. Journal compilation (c) 2008 The Agricultural Economics Society.

Date: 2009
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Handle: RePEc:bla:jageco:v:60:y:2009:i:1:p:202-219