Economic Analysis of Factors Affecting Technical Efficiency of Smallholders Maize Production on Rwanda

Abstract

This study was conducted in Musanze and Bugesera districts of Rwanda .The objective were to estimate the level of technical efficiency in maize production. The study also attempted to determine some socio-economic characteristics which influence technical efficiency in maize production. It used primary and secondary data. Primary data were collected using questionnaire from random sample of 276 farmers, and it covered the socio-economic characteristics of farmers. Secondary data were collected from different sources, e.g., Ministry of Agriculture and livestock, records, books, reports and internet. The Stochastic Production Frontier (SPF) analysis was used to estimate the technical efficiency of producing maize, and to determine the factors behind inefficiency such as age, educational level, marital status, family size, main occupation, type of seeds, and extension services. Also, descriptive statistics were used to analyze the socio-economic characteristics of farmers. The results indicated that the mean technical efficiency for maize production in both districts is 27% which means that farmers can increase their output by 34%, through better use of available resources and existing technology if they are to be technically efficient. The study concluded that age, educational level and access to credit were significant variables leading to technical inefficiency in Rwanda. On the other hand, marital status, family size, main occupation, type of seeds, and extension services, had no significant impact on farmers' inefficiency. To improve technical efficiency for maize production in the Rwanda, the study recommended improvement in education level of the farmers and availability of funds in the optimum time.

Key words: maize Productivity; Technical efficiency; stochastic frontier production