Non-parametric decomposition of total factor productivity growth in yam production in North-Central Nigeria

Abstract

Non-parametric analysis of total factor productivity change in yam production in North-Central Nigeria from 1992 to 2016 was carried out with the use of secondary data. The secondary production data of yam for that period were collected from Food and Agriculture Statistical (FAOSTAT) data bank. Malmquist Total Factor Productivity Index (MTFPI) based on Data Envelopment Analysis (DEA), was used to empirically analyse the total factor productivity of the yam, while Tobit regression was used to analyse the determinants of total factor productivity in the study area. The results of the MTFPI analysis reveal that yam contributed 1.4% of technical efficiency change to productivity growth over the period studied. The technological contributions to productivity growth regressed at 1.8%. The study revealed the productivity growth of yam to be 0.2%. Tobit regression result showed credit borrowed, government policy (Agricultural Transformation Agenda - ATA), capital, and labour to have significant and positive relationships with the productivity of the crop at either p≤0.05 or p≤0.001 level of probability, which implies that increase in them led to increase in the crop’s productivity. Capital-labour was statistically significant but negatively related to yam productivity at p≤0.01, which implied that utilization of labour in a greater proportion than capital led to reduction or regress in its productivity growth. The study recommends farmers‘ training on farm practices and techniques to increase yam productivity. They should be encouraged to accept improved yam varieties from research institutes, properly allocate the production resources and adopt improved technology to achieve productivity growth in the study area.