Bayes Approach to the Estimation of Technical Efficiency and Returns to Scale in Agriculture: A Case of Nigeria
 /  Bayes Approach to the Estimation of Technical Efficiency and Returns to Scale in Agriculture: A Case of Nigeria

Bayes Approach to the Estimation of Technical Efficiency and Returns to Scale in Agriculture: A Case of Nigeria

Toritseju Begho and O’raye Dicta Ogisi

ABSTRACT
Most studies in Nigeria have focused on the classical approach to estimating technical efficiency. In this paper, we examine technical  efficiency of small farms by estimating a stochastic production frontier model using the Bayesian methodology. The model is applied to farm household data from Nigeria. The results obtained show that farm size, fertilizer, hired and family labour are positive and significant at 5%. The estimated stochastic frontier function indicates that farms are technically inefficient. Efficiency was found to be positively influenced by the age, gender, education, extension visits and participation in off-farm activities. We also found that the farms in our sample exhibited increasing Returns to Scale. Our findings have significant policy implications as it draws attention to increasing agricultural productivity through improving the existing level of efficiency of small farmers.

Journal Article
PDF, 295.5 KB
Creative Commons LicenseCreative Commons license
Biological Sciences
Agricultural Economics
Agriculture; Bayesian stochastic frontier; Technical Efficiency; Nigeria.
Christian Bassey
12th April, 2018
12th April, 2018
http://oer.mciu.edu.ng/wp-content/uploads/2015/04/77OGISI.pdf


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