Determinants of the Economic Efficiency of Cassava Production in Bomi and Nimba Counties, Liberia”____
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DETERMINANTS OF THE ECONOMIC EFFICIENCY OF CASSAVA PRODUCTION IN BOMI AND NIMBA COUNTIES, LIBERIA KOLLIE B. DOGBA A56/9511/2017 A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF SCIENCE IN AGRICULTURAL AND APPLIED ECONOMICS DEPARTMENT OF AGRICULTURAL ECONOMICS FACULTY OF AGRICULTURE UNIVERSITY OF NAIROBI 2020 DECLARATION This thesis is my original work that has not been presented for award of a degree in any other University. This thesis has been submitted with our approval as University supervisors: ii DECLARATION OF ORIGINALITY University of Nairobi This form must be completed and signed for all works submitted to the University for Examination Name of Student: KOLLIE B. DOGBA_______________________________ Registration Number: A56/9511/2017________________________________ College: COLLEGE OF AGRICULTURE & VETERINARY SCIENCES (CAVS) Faculty/School/Institute: FACULTY OF AGRICULTURE___________________________ Department: AGRICULTURAL ECONOMICS__________________________ Course Name: Agricultural and Applied Economics (MSc. Program)________ Title of the Work: “DETERMINANTS OF THE ECONOMIC EFFICIENCY OF CASSAVA PRODUCTION IN BOMI AND NIMBA COUNTIES, LIBERIA”____ DECLARATION 1. I understand what plagiarism is and I am aware of the University’s policy in this regard 2. I declare that this ____THESIS__ (Thesis, project, essay, assignment, paper, report, etc) is my original work and has not been submitted elsewhere for examination, award of a degree or publication. Where other people’s work or my own work has been used, this has properly been acknowledged and referenced in accordance with the University of Nairobi’s requirements. 3. I have not sought or used the services of any professional agencies to produce this work 4. I have not allowed, and shall not allow anyone to copy my work with the intention of pass it off as his/her own work 5. I understand that any false claim in respect of this work shall result in disciplinary action, in accordance with University Plagiarism Policy. iii DEDICATION This Master Thesis is dedicated to all … Children, especially the ones vulnerable to malnutrition and food insecurity; Young people, especially the physically challenged and those in indecent works; Small-scale farmers, especially food producers with low production efficiency; and to my Father Mr. DANIEL B. DOGBA, Sr. (Deceased) And all departed young and energetic folks; especially… Ernest Chukuboy Knightley (The Salvation Army-Liberia) Teolo Seoking (Agape, Cathedral of Hope-Liberia) James Passawe (IPTP Batch-4) Little Alice Belleyema (Family, Liberia) William G. Jallah (Orange-Liberia) and Mary M. Konneh (Smythe Road) iv ACKNOWLEDGEMENTS All GLORY UNTO THE ALMIGHTY GOD for His grace through Jesus Christ. Without His guidance, NOTHING could have fitted so well, as they do now. First, I acknowledge my Supervisors: Distinguished Professor Willis-Oluoch Kosura (Ph.D.) of the University of Nairobi, and Mrs. Chepchumba Chumo (Ph.D.) of the Moi University. Thanks to both of you for your patience, love, and unflinching support from the very beginning to the completion of this thesis project. I pray that God rewards you accordingly, amen. Second, I want to acknowledge the Department of Agricultural Economics through the office of the Chairman, Prof. John Mburu (Ph.D.) for the support received from the academic, technical and administrative staff, especially when my father passed. In the same vein, I want to acknowledge the effort and supports of the entire 2017 CMAAE class. I pray that God pays each of you bountifully for the supports. Third, I would like to acknowledge the African Economic Research Consortium (AERC) for funding my study. Also, I also want to acknowledge the AERC/CMAAE program team for the support which enable me to travel back home, and participate in the funeral rites of my father, thank you!!! Also, I want to acknowledge all stakeholders and sponsors of AERC, especially the African Development Bank Group, for the grants which catered to my study. Fourth, I would like to acknowledge all the enumerators, the lead community assessor Oretha Queeglay, and the survey coordinators: Mr. Thomas Gbuarpaye (in Nimba) and Mr. Z. Edmord Greaves (In Bomi) for the support during the data collection period. Finally, I want to acknowledge the entire “DOGBA” family that are unitedly behind me, THANK YOU! I want to also acknowledge Ma. Kormassa Kollie (my Mother), Tenneh G. Mansaray (My Fiancée), Alfred S. Dogba and Korta M. Dogba (our Sons) for keeping up during my absences. I pray that God rewards each of you in His way for your sacrifices, amen! v TABLE OF CONTENTS DECLARATION ..................................................................................................................... ii DECLARATION OF ORIGINALITY .................................................................................... iii DEDICATION ........................................................................................................................ iv ACKNOWLEDGEMENTS...................................................................................................... v LIST OF TABLES .................................................................................................................. ix LIST OF FIGURES ................................................................................................................. x LIST OF ABBREVIATIONS AND ACRONYMS ................................................................. xi ABSTRACT .......................................................................................................................... xii CHAPTER ONE ...................................................................................................................... 1 INTRODUCTION ................................................................................................................... 1 1.1 Background .................................................................................................................. 1 1.2 Statement of the Research Problem ............................................................................... 5 1.3 Objective of the Study .................................................................................................. 6 1.4 Hypotheses ................................................................................................................... 7 1.5 Justification of the Study............................................................................................... 7 1.6 Organization of the Thesis ............................................................................................ 8 CHAPTER TWO ..................................................................................................................... 9 LITERATURE REVIEW ......................................................................................................... 9 2.1 Cassava Production ....................................................................................................... 9 2.1.1Cassava Production and Perspective in Africa ............................................................... 9 2.1.2 Cassava Production, Food Situation, and Agriculture Exports in Liberia ..................... 12 2.2 Empirical Review ....................................................................................................... 14 2.3.1 Empirical reviews of related literature on Productivity and Efficiency ........................ 14 2.3.2 Empirical reviews of related literature on stochastic metafrontier analysis .................. 18 2.3 Summary .................................................................................................................... 21 2.4 Hypothesized determinants and their expected (a priori) Signs .................................... 22 CHAPTER THREE ................................................................................................................ 24 METHODOLOGY................................................................................................................. 24 3.1 Conceptual Framework ............................................................................................... 24 3.2 Theoretical Framework ............................................................................................... 26 3.3 Empirical Framework ................................................................................................. 28 vi 3.3.1 Specification of the Stochastic Frontier Models .......................................................... 28 3.3.2 Estimation of the Economic Efficiency ....................................................................... 30 3.3.3 Estimation of the Metafrontier Technical Efficiency ................................................... 31 3.4 Description of the Study Area ..................................................................................... 32 3.5 Sampling procedure .................................................................................................... 34 3.5.1 Population .................................................................................................................. 34 3.5.2 Sample Size ................................................................................................................ 35 3.5.3 Sampling .................................................................................................................... 36 3.6 Data Collection ..........................................................................................................