DETERMINANTS OF TECHNICAL EFFICIENCY IN GARI PROCESSING IN DELTA STATE NIGERIA

2007, 8 (3)   p. 327-336

C Chukwuji, O Inoni, P Ike

Abstract

In order to determine the technical efficiency of Gari processing in Delta State, Nigeria, panel data were collected over 6 months period from 100 processors, using multi – stage random sampling technique. A translog stochastic frontier model incorporating inefficiency effects was employed to analyse the data, using the computer program FRONTIER 4.1 developed by [6]. The results indicate that there is a wide variation in the level of technical efficiency in Gari processing, ranging from 25% to 88%, with a mean efficiency level of 65%. The technical inefficiency level of processors is attributed to socio – economic characteristics including age of processor, family size, level of formal education, access to production credit, availability of alternative sources of income and membership of Gari Processing Associations. The inefficiency of individual processors was negatively related to all factors and were statistically significant (P < 0.05), except age of processor.

Keywords

gari processing, technical efficiency, translog frontier production function, socio-economic factors.

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