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Estimating Economic Efficiency of Mango Production in Ghana

Abstract

In Ghana, Mango production is the major cash crop activity in the Yilo Krobo Municipality. However, the productivity of the crop has been persistently low over the past years. Studies have suggested that one key factor of productivity growth is efficiency in resource and technology use. This study estimated the economic efficiency of mango production to determine the scope for an increase in mango production using the existing technology. A multistage sampling technique was used to randomly select and collect primary data from sixty two registered mango farmers. Stochastic production frontier analysis was used to estimate the economic efficiencies and their determinants among mango farmers. The results of the analysis indicated that mango farmers were technically, allocativelly and economically inefficient, and that the presence of technical allocative and economic inefficiencies had effects on mango production. In addition, the results revealed that farm-specific and farmer-specific characteristics were significant predictors of the technical, allocative and economic inefficiency levels

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