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RELATIVE ECONOMIC EFFICIENCY OF FARMS IN RICE PRODUCTION: A PROFIT FUNCTION APPROACH IN NORTH CENTRAL NIGERIA

The study examines the relative economic efficiency of small and large rice farms in central, Nigeria. Previous studies of such were based on production functions which have been criticized due to the associated simultaneous equation bias because the input levels are endogenous. However, the profit function approach avoids these problems. Data related to input and output prices, production factors and socio-economic characteristics were collected from 143 rice farmers in Niger state, Nigeria. Analytical tools included descriptive statistics and seemingly unrelated regression (SURE). A striking…

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