Assessing the profit inefficiency among urban and peri-urban vegetables crop producers in the Southern Benin: a directional distance bootstrap approach

A.G. Singbo, A.G.J.M. Oude Lansink, G. Emvalomatis

Research output: Chapter in Book/Report/Conference proceedingAbstract

Abstract

In West Africa, the rapid population growth, infrastructure development and urbanization provide increasing opportunities for the intensification of agricultural systems in urban regions. A wide range of vegetable crops are grown, traded and consumed in urban and peri urban zones of Benin. However, the potential of urban vegetables production is limited by technical, allocative and marketing inefficiency. In addition, with the food crisis that started this last decade in Africa, agriculture has gradually returned in the global development agenda. Hence, urban agricultural sector productivity analysis is crucial for food security and poverty reduction. By contrast, the vegetables sector traditionally received far less attention from research and extension than either industrial or staple food crops. These trends provide increasing opportunities for agricultural development and the intensification of agricultural systems around urban centers. The objective of this paper is to estimate the level of profit inefficiency among urban and peri urban vegetable crop producers in the South of Benin. We collected data from 310 producers in six cities and towns in the South of Benin during agricultural production year 2009/2010 using a two-stage stratified random sample procedure. Variables collected from the farmer survey are outputs, inputs, farm characteristics and socio-economic information of the farmer and farm household. We employed a dual approach to estimate and decompose short-run profit. This framework also accommodates multiple outputs and multiple inputs which characterises urban vegetable crops production. We adapt the (first stage) smooth bootstrap approach to the directional distance function to improve statistical inference. The bootstrap method appears to be robust and useful for investigating inefficiency in cross section data. In semi-parametric efficiency analysis, the directional distance function is becoming a more popular approach to measuring profit inefficiency. The directional distance function is derived from the shortage function which generalizes the profit function in the short-run. Since overall profit inefficiency analysis is based on difference rather than ratio in Farrell cases, the directional distance function is practical due the fact that both maximal and observed profit may equal zero. In addition, the fact that the directional distance function combines features of both an input-oriented and an output-oriented model, generally leads to a more complete ranking of the observations. The results show that although urban and peri urban vegetable crop production farming is input intensive, there is a need to reduce loss of profit of producers. We found evidence of substantial profit inefficiency among urban vegetable crop producers. The paper also provides empirical support for reducing urban agriculture inputs use inefficiency to address urban food insecurity problems in Benin.
Original languageEnglish
Title of host publicationBook of Abstracts XII European Workshop on Efficiency and Productivity Analysis
Pages142-143
Publication statusPublished - 2011
EventEWEPA 2011, Verona, Italy -
Duration: 21 Jun 201124 Jun 2011

Conference

ConferenceEWEPA 2011, Verona, Italy
Period21/06/1124/06/11

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    Singbo, A. G., Oude Lansink, A. G. J. M., & Emvalomatis, G. (2011). Assessing the profit inefficiency among urban and peri-urban vegetables crop producers in the Southern Benin: a directional distance bootstrap approach. In Book of Abstracts XII European Workshop on Efficiency and Productivity Analysis (pp. 142-143) https://edepot.wur.nl/336530