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Application of Stochastic Production Frontier in the Estimation of Technical Efficiency of Cassava Based Farms in Akwa Ibom State, Nigeria

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Abstract:

The technical efficiency of cassava farms in Akwa Ibom State was investigated using a stochastic frontier production function which incorporates a model for the technical inefficiency effects. Farm-level data from 180 cassava farmers were obtained using well structured questionnaire. Variables included in the model for the inefficiency effects are extension contact, years of experience, age and level of educational attainment of the farmers. The parameters of the stochastic frontier production were estimated simultaneously with those in the model of inefficiency effects. Findings reveal that none of the cassava farms in the study area reached the frontier threshold. Except for capital ( 5), all other efficiency variables were significant. Results further show a mean technical efficiency index of 0.74.

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