Productivity improvement in ECOWAS rice farming: Parametric and non-parametric analysis
Ajetomobi, Joshua Olusegun
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This study compares data envelopment analysis and stochastic frontier analysis to assess productivity growth of rice farming in Economic Community of West African States (ECOWAS). The data are collected from Food and Agriculture Organization Statistical (FAOSTAT ) database and International Rice Research Institute (IRRI)’s world rice statistics and cover a 45 year period (1961-2005) separated into pre-ECOWAS (1961-1978) and ECOWAS (1979-2005). The results show consistency between the approaches to the extent that: (1) there are potentials for efficiency improvements, but the magnitudes depend on the model applied and segmentation of the data set, (2) there has been a productivity improvement in the sector, in the interval 0.7–15% in the periods studied and (3) technical change has had the greatest impact on productivity, indicating that producers have a tendency to catch-up with the front runners. The average TFP in pre-ECOWAS period is larger than that of ECOWAS period. In both periods, productivity growth is sustained through technological progress. In general, policy-makers should try not to be indifferent with respect to the approach used for productivity measurement as these may give different results.