Technical efficiency during economic reform in Nicaragua: evidence from farm household survey data |
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| Affiliation: | 1. Department of Agricultural Economics, Swiss Federal Institute of Technology, Sonneggstrasse 33, 8092 Zürich, Switzerland;2. Food and Agriculture Organisation, Rome, Italy;1. Institute of Economics and International Relations, Federal University of Uberlandia, Joao Naves de Avilla 2121, Bloco J1, Uberlândia 38408, Minas Gerais, Brazil;2. Environmental Studies Program, University of Colorado Boulder, Sustainability, Energy and Environment Community, 4001 Discovery Drive, Boulder, CO 80303, USA;3. Department of Production Engineering, Federal University of São Carlos, Rodovia Washington Luiz Km 235, 13565-905 São Carlos, SP, Brazil;1. Kemper and Ethel Marley Foundation Chair, Morrison School of Agribusiness, W.P. Carey School of Business, Arizona State University, Mesa, AZ, USA;2. Senior Research Fellow, IFPRI, South Asia, New Delhi, India;3. Director, IFPRI, South Asia, New Delhi, India;4. Graduate Student, Morrison School of Agribusiness, W.P. Carey School of Business, Arizona State University, Mesa, AZ, USA;5. IFPRI, South Asia, New Delhi, India;1. University of Regensburg, Department of Finance, 93040 Regensburg, Germany;2. CERMi (Centre for European Research in Microfinance), Belgium |
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| Abstract: | This paper employs a translog stochastic frontier model to examine technical efficiency of maize and bean farmers in two selected regions of Nicaragua using farm-level survey data for the 1994–1995 crop year. The average technical efficiency levels are 69.8 and 74.2% for maize and beans, respectively. The results from the maize and beans translog frontier functions show that farmers’ human capital represented by the level of schooling, access to formal credit and farming experience represented by age contribute positively to production efficiency, while farmers’ participation in non-farm employment tends to reduce production efficiency. |
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