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Macroeconomic Shocks, Human Capital and Productive Efficiency: Evidence from West African Rice Farmers

Christopher Barrett (), Shane Sherlund () and Akinwumi A. Adesina

Journal of African Economies, 2006, vol. 15, issue 3, 343-372

Abstract: Little empirical work has quantified the transitory effects of macroeconomic shocks on farm-level production behaviour. We develop a simple analytical model to explain how macroeconomic shocks might temporarily divert managerial attention, thereby affecting farm-level productivity, but perhaps to different degrees and for different durations across production units. We then successfully test hypotheses from that model using panel data bracketing massive currency devaluation in the West African nation of Côte d'Ivoire. We find a transitory increase in mean plot-level technical inefficiency among Ivorien rice producers and considerable variation in the magnitude and persistence of this effect, attributable largely to ex ante complexity of operations, and the educational attainment and off-farm employment status of the plot manager. Copyright 2006, Oxford University Press.

Date: 2006
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Journal of African Economies is currently edited by Marcel Fafchamps

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