Credit access and technical efficiency of smallholder farmers in Northern Ghana: Double bootstrap DEA approach
ISSN: 0002-1466
Article publication date: 30 August 2018
Issue publication date: 17 September 2018
Abstract
Purpose
The purpose of this paper is to examine the relationship between credit access and technical efficiency of smallholder crop farmers in northern Ghana.
Design/methodology/approach
The study uses a random sample of 445 farming households in the three northern regions of Ghana. The two-stage double bootstrap DEA approach was used to consistently estimate technical efficiency scores as well as the determinants.
Findings
The results revealed that, given the current technology, there is substantial yield or productivity gap among the sample of producers in northern Ghana used for the study. This is because producers can reduce input use by over 50.0 percent while still achieving the same output levels. It is further revealed that proportion of household income from off-farm activities, distance of farm from homestead, location and credit access are significant determinants of technical efficiency.
Originality/value
The current study differs from previous studies in two basic ways. First, it takes into account the fact that smallholder farmers practise mixed or inter-cropping by using value of output so that various crops on a given plot of the farmer can be aggregated; and second, a nonparametric approach is adopted so that the inherent inconsistencies in using the two-step model within a parametric framework can be avoided.
Keywords
Citation
Nkegbe, P.K. (2018), "Credit access and technical efficiency of smallholder farmers in Northern Ghana: Double bootstrap DEA approach", Agricultural Finance Review, Vol. 78 No. 5, pp. 626-639. https://doi.org/10.1108/AFR-03-2018-0018
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited