Foreign Direct Investment into Agriculture and Technical Efficiency in Ghana.
Agriculture has and will continue to contribute to output and employment in Ghana. Competition
from other sectors for productive resources has created an imperative to reduce inefficiency. With the
focus of governments on foreign direct investment into Ghana and particularly into the agriculture
sector and anticipated technology spillover, the study assessed the effect of foreign direct investment
on technical efficiency in Ghana’s agriculture. A stochastic production frontier was estimated using
data from FAOSTAT covering 1980-2007. The results showed that, foreign direct investment into
agriculture positively but statistically insignificantly influenced technical efficiency.