Technological Innovation and Efficiency in the Nigerian Maize Sector: Parametric Stochastic and Non-parametic Distance Function Approaches

Goodness C. Aye and Eric D. Mungatana

No 95965, 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa from African Association of Agricultural Economists (AAAE)

Abstract: The current food crisis all over the globe has necessitated alternative policy actions by various stakeholders in almost all countries of the world. Consequently, efforts are focused on increased investment in agricultural research and development. The study evaluates impact of technological innovations on estimates of technical, allocative and cost efficiency from a parametric stochastic and non-parametric distance functions. Inefficiency effects are modelled in a second stage endogeniety-corrected Tobit regression model as a function of technological innovation and other policy variables. The results from both approaches show there is substantial technical, allocative and cost inefficiency in maize production and that analysis of technical, allocative and cost efficiency with respect to technological innovation and other policy factors are robust. Our results show that policies aimed at maize technology development and their timely dissemination, improvement in education, access to credit and extension among others could promote technical, allocative and cost efficiency, reduce yield variability, enhance farm income, food security and reduce poverty in Nigeria.

Keywords: Crop; Production/Industries (search for similar items in EconPapers)
Pages: 25
Date: 2010-09
New Economics Papers: this item is included in nep-afr, nep-agr and nep-eff
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaae10:95965

DOI: 10.22004/ag.econ.95965

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