Technical efficiency estimates and the role of formal education: Evidence from catfish firms in Ijumu Local Government Area of Kogi State, North Central, Nigeria

Abstract

This study was conducted to estimate the technical efficiency and understand the influence of education on technical inefficiency of fish farmers in Ijumu local government area of Kogi state. Multistage randomly sampling was employed in the selection of 100 fish farmers for questionnaire administration. The Cobb-Douglas stochastic frontier production function was applied to the data. Findings show that all Fish farmers in Ijumu local government area are educated and have moderate level of farming experience. The number of fingerling stocked and labour have significant positive effects on the volume of production but the return to scale of 0.88 was estimated. Technical efficiency estimates for fish farmers in the area range from 0.47 to 0.97 and averaged 0.88%. This means that increase in output by about 12% may be achieved through more efficient use of the existing input and technology. Contrary to general notion, formal education was found to increase technical inefficiency. Age and training were however negatively related to technical inefficiency. Therefore in order to achieve production at the isoquant frontier in Ijumu, policy attention needs to focus on variables other than education. Thus we recommend mentoring relationships between younger fish farmers need and older ones; as well as Improvement in quality and numbers of training opportunities.

Keywords: Technical efficiency, Frontier, Fish farmers, Ijumu