Productivity Growth in Food Crop Production in Imo State, Nigeria

C.e Onyenweaku, Ifeanyi Nwachukwu and T.C. Opara

MPRA Paper from University Library of Munich, Germany

Abstract: The study examined the productivity growth in food crop production in Imo State with emphasis on the decomposition of total factor productivity into technical progress, changes in technical and allocative efficiency and scale effects. A panel data set comprising 210 observations drawn over 2001 – 2007 periods was used in the study. Using the translog stochastic frontier production function, the decomposition components were computed applying the appropriate formulae. The results showed that total factor productivity decreased through time while technical change was negative, implying downward shift of the production frontier. As a major component, technical change was the main constraint to the achievement of high levels of TFP during the study period. The scale effect, which is generally bigger than technical change component shows that the sampled farms on the average have not taken advantage of scale economies. The result further revealed that the allocative efficiency had an average magnitude closer to the scale effect and points towards decreases in the efficiency with which production factors are allocated. This is an indication of a decline in technical efficiency. On the basis of the results, the study suggested reforms of the ADPs with a bid to enhancing their capacity in extending novel technologies and innovations to farmers.

Keywords: Productivity decomposition; scale effect; allocative; efficiency (search for similar items in EconPapers)
JEL-codes: B41 C13 C42 D01 (search for similar items in EconPapers)
Date: 2010-09-02, Revised 2010-05-02
New Economics Papers: this item is included in nep-afr, nep-agr and nep-eff
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Published in African Crop Science Journal 3.18(2010): pp. 119-131

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