PRODUCTION EFFICIENCY IN AGRICULTURE IN NIGERIA: DO MIGRANT REMITTANCES MATTER?

Abstract

This paper investigates how remittances flow to Nigeria from household migrants affect farm production efficiency of the left behind in rural areas. We used the Living Standard Measurement Survey data set and applied production frontier models to generate production efficiency scores for migrant and non-migrant farm households. Using simple ANOVA and stochastic dominance analysis we test the hypothesis of a negative migrant remittances effect on production efficiency. The mean production efficiency for migrants was higher and statistically significant at p<0.05. We also find a higher technical efficiency across all percentiles for migrant households. Though access to remittances played an important role in the improvement of farmer’s production efficiency, it may not be sufficient as there were observed crosses at some points of the stochastic dominance efficiency curves for migrant and non-migrant households that suggests some possible trade-offs.

Downloads

Download data is not yet available.

Author Biography

Oluwatosin Adeniyi, http://orcid.org/0000-0001-9637-8195

 

 

References

1.Akudugu, M. (2016) Agricultural productivity, credit and farm size nexus in Africa: a case study of Ghana, Agricultural Finance Review 76(2), 288-308
2. Amaza, P. S. & Olayemi, J. K.(2002). An analysis of technical inefficiency in food crop production in Gombe State, Nigeria; Applied Economics Letters; 9,51–54.
3. Amaza, P. S. Bila, Y & Iheanacho, A.C.(2006) Identification of Factors that Influence Technical Efficiency of Food Crop Production in West Africa: Empirical Evidence from Borno State, Nigeria . Journal of Agriculture and Rural Development in the Tropics and Subtropics 107(2), 139–147
4. Bah M, Salmana C, Bitrina D, Gouro D, Fred L, David O, Enoch O, Janice O, & Cecilia T, (2010). Changing Rural-Urban Linkages in Mali, Nigeria and Tanzania. Environment &Urbanization 15(1), 3-24.
5. Bishop A, Formby P, & Thistle (1992). Convergence of the south and Non-south income Distributions, 1969-1979. The American Economic Review 82(1), 262-272
6. Chang H. & Wen F, (2011). Off-farm work, technical efficiency, and rice production risk in Taiwan Agricultural Economics 42(2), 269–278
7. Chukwuone N, (2007). Analysis of impact of remittance on poverty and inequality in Nigeria. Sixth PEP Research Network General Meeting. Available at: www.pep-net.org.
8. Coelli TJ, Rahman S & Thirtle C, (2002). Technical, allocative, cost and scale efficiencies in Bangladesh rice cultivation: A nonparametric approach. J. Agric. Econ. 53(3), 607–626.
9. Dillon, A, Mueller V, & Salau S, (2011).Migratory responses to agricultural risk in Northern Nigeria Amer. J. Agr. Econ. 93(4), 1048–1061
10. Đuric D., Ristić J., Đurić, Dragana and Vujanićet Ivana(2017) Export of Agricultural and Food Products in the Function of Economic Growth of Republic of Serbia. Economics of Agriculture 64(3), 887-900
11. Glytsos, Nicholas P A. (2002) Macroeconometric Model of the effects of Migrant Remittances in Mediterranean Countries,” In human capital: Population Economics in the Middle East, ed. Ismail Abdel-Hamid Sirageldin(Cairo American University in Cairo Press, 2002) cited in Ozden and Schiff, Overview, pp, 7-8. National Bureau of Statistics. Available at: www.statistica.md
12. Gubert F, (2002). Do migrants insure those who stay behind? Evidence from the Kayes Area (Western Mali).Oxford Development Studies 30(3), 267–287
13. Hagen-Zanker J & Siegel M, (2007) The determinants of remittances: A review of the literature Working Paper MGSoG /2007/WP003 Maastricht University Maastricht Graduate School of Governance.
14. Kalirajan, K.P. and Shand, R.T. (1990) Determinants of Production Efficiency: The Case Of Rice Production In Antique Province, Philippines. International Economic Journal 4(3), 77-91.
15. Kihangire, D. & Katarikawe, M. (2008). The impact of remittances on macroeconomic stability andfinancial sector deepening: opportunities and challenges for Uganda. Bou Working Papers, Available at: http://www.bou.or.ug/bouwebsite/
16. Kuiper M, (2005). Village modeling: A Chinese recipe for blending general equilibrium and household model. Unpublished Ph.D. thesis, Wageningen University, Wageningen, The Netherlands.
17. Kumbhakar S, (2002). Specification and estimation of production risk, risk preference, and technical efficiency. American Journal of Agricultural Economics 84(1), 8–22.
18. LioM & Meng-Chun L, (2006). ICT and agricultural productivity: evidence from cross country data Agricultural Economics 34(3), 221–228
19. Llewelyn, R. V. & Williams, J. R. (1996); Non-parametric analysis of technical, pure technical and scale efficiencies for food crop production in East Java, Indonesia; Agricultural Economics; 15,113–126.
20. Makhlouf (2019) Is Productivity Affected by Remittances? Journal of International Development 31 (2), 211-222
21. Parikh, A. & Shah, M.(1994); Measurement of technical efficiency in the northwest frontier province of Pakistan; Journal of Agricultural Economics; 45(1),132–138; 1994.
22. Picazo-Tadeo AJ & Wall A, (2011). Production risk, risk aversion and the determination of risk attitudes among Spanish rice producers Agricultural Economics 42 (4), 451–464
23. Quartey P, (2006). The impact of migrant remittances on household welfare in Ghana. Research paper 158, African economic research consortium, Kenya Nairobi.
24. Rahman S. (2011). Resource use efficiency under self-selectivity: the case of Bangladeshi rice producers The Australian Journal of Agricultural and Resource Economics. 55(2), 273–290
25. Stratana, Alexandru & Chistrugaa, Marcel (2012) Economic consequences of remittances. Case of Moldova. Procedia Economics and Finance 3, 1191 – 1195.
26. Wouterse F, (2010). Migration and technical efficiency in cereal production: evidence from Burkina Faso. Agricultural Economics 41(5), 385–395
27. Wooldridge J, (2002). Econometric Analysis of Cross Section and Panel Data. The MIT Press, Cambridge, MA.
28. World Bank, (1992) Staff Appraisal Report. National Fadama Development Project, Kano. Nigeria. The World Bank.
29. Yang D, (2011).Migrant Remittances. Journal of Economic Perspectives. 25(3), 129-52.
30. Zhonwei Xing (2018) Development Impacts of Remittances in Agricultural Households in Fiji. Remittances Review. 3(1), 19–49
Published
2020-06-23
How to Cite
ODOZI, John C; ADENIYI, Oluwatosin; YUSUF, Sulaiman Adesina. PRODUCTION EFFICIENCY IN AGRICULTURE IN NIGERIA: DO MIGRANT REMITTANCES MATTER?. Economics of Agriculture, [S.l.], v. 67, n. 2, p. 315-327, june 2020. ISSN 2334-8453. Available at: <http://ea.bg.ac.rs/index.php/EA/article/view/1546>. Date accessed: 23 jan. 2021. doi: https://doi.org/10.5937/ekoPolj2002315O.
Section
Original scientific papers