Original research article
Economic Efficiency of Yam Production in Oyo State of Nigeria
2012, 77 (4) p. 217-221
Laudia T. Ogunniyi, Olajide A. Ajao
Abstract
This study estimates economic efficiency of yam growing farmers in Oyo State of Nigeria using stochastic frontier production function. The empirical application used farm level data collected from 120 farms following 2007/2008 growing season. The results indicate that farm size, hired labour, yam set and equipment are the major factors that influence changes in yam output. Farm specific variables, such as farming experience, diversification and extension, were the significant factors influencing inefficiency among yam producers. Predicted economic efficiencies range between 0.0094 and 0.876 with a mean economic efficiency of 0.594. Based on these results, sample yam producers could increase their output by 40.6% through better use of available resources.
Keywords
economic efficiency, yam, stochastic frontier function
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