Estimation and determinants of technical efficiency of smallholder cashew (anacardium) farmers in Dassa district, Benin: a bootstrap data envelopment approach

Raoul Akanro, Abraham Amoussouga Gero () and Marie Odile Attanasso
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Raoul Akanro: Benin Centre for Scientific Research and Innovation
Abraham Amoussouga Gero: National University of Agriculture, Benin
Marie Odile Attanasso: Benin Centre for Scientific Research and Innovation

SN Business & Economics, 2022, vol. 2, issue 12, 1-17

Abstract: Abstract Cashew nut production is becoming more important in Benin’s economy, and it helps to improve the living conditions of rural populations. This paper examines cashew producers’ technical efficiency in Dassa District using survey data collected from 100 farms in 2020. The research relies on bootstrap modeling of Data Envelopment Analysis, and Fractional Regression Model is applied to assess the determinants of producers’ technical efficiency. The results show the technical efficiency of the farms to be 34.56%, and the same level of production is obtained when inputs are reduced by 65.44%. The research shows that, contrary to theory, farmers without access to credit are more efficient than those with access, with a difference of 12.64%. Finally, the results show that schooling expenses and the sale of cashew apples as a by-product of production are promising factors that may increase the efficiency of cashew nut production. Policies to promote cashew farm efficiency need to focus on promoting formal education in rural areas, establishing a financial literacy training program for farm managers, and promoting the expansion of agricultural extension for farmers. In addition, producers should also set up a system for productive, substainable, and profitable use of cashew apples to increase their income.

Keywords: Bootstrap; Cashew; Data envelopment analysis; Technical efficiency (search for similar items in EconPapers)
JEL-codes: C67 D24 L23 O13 Q12 Q18 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s43546-022-00383-3

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