Technical and Economic Efficiency of Rice Production on the Irrigated Plain of Bagre (Burkina Faso): A Stochastic Frontier Approach

Abstract

This paper examines the level of technical efficiency, allocative efficiency and economic efficiency of rice farmers on the irrigated plain of Bagré to assess the potential for increasing rice production.

The computer program Frontier version 4.1 was used to estimate a stochastic frontier production function and his dual (cost frontier function) from which we derived the efficiency levels of farmers. Determinant efficiencies were estimated simultaneously with the frontier functions. The data used for analysis were obtained from 170 rice producers selected randomly from the irrigated area of Bagré. The results indicate that technical, allocative and economic efficiency  of producers are respectively  80%, 93% and 74% on average. Moreover, it is clear that economic efficiency could be improved if the mineral fertilizer, improved seed and capital are properly used by rice farmers.

Keywords: technical efficiency, allocative efficiency, economic efficiency, production frontier, cost frontier function, Burkina Faso