Home About IUP Magazines Journals Books Archives
     
A Guided Tour | Recommend | Links | Subscriber Services | Feedback | Subscribe Online
 
The IUP Journal of Agricultural Economics
Total Factor Productivity Decomposition for Cotton Growers in the Economic Community of West African States (ECOWAS): 1961-2005
:
:
:
:
:
:
:
:
:
 
 
 
 
 
 
 

This study investigates the Total Factor Productivity (TFP) growth in the Economic Community of West African States (ECOWAS) cotton and its decomposition to efficiency change and technological progress from 1961-2005, using the stochastic production frontier approach. Calculations are based on panel data of major cotton producers in the region collected from the Food and Agriculture Organization Statistics (FAOSTAT) database, and the international cotton advisory committee database. The data includes cotton output and six input variables comprising land area, labor, seed, capital, time trend and country fixed effects. The 45-year period is divided into two subperiods—1961-1978 and 1979-2005, in order to study the effects of ECOWAS reforms on productivity growth of the crop. The results show that there is potential for efficiency improvements in cotton production in ECOWAS, and the average technical efficiency score for the region is 0.91. The most technically efficient country is Burkina Faso, noted for sustainable cotton support system. A closer look at the TFP in the ECOWAS and pre-ECOWAS subperiods shows larger TFP in the ECOWAS period (1979-2005). In both the pre-ECOWAS and ECOWAS periods, productivity growth in cotton is sustained through technological progress rather than through more efficient use of inputs.

 
 
 

The central role of agriculture in the Economic Community of West African States (ECOWAS) economy cannot be overemphasized. At present, the sector contributes 30-50% of the Gross Domestic Product (GDP) and provides employment for 50-80% of the population in the region. The sector is characterized by millions of small farms of 2-10 ha, run by families who derive their income and livelihood from producing primary agricultural products for consumption, domestic markets and export. Nevertheless, all the 15 countries in the region are net importers of food and agricultural commodities, while the major export crops are limited to a few such as coffee, cotton, cocoa and rubber. The prevalent low per capita production of food and cash crops, coupled with weak human capital and high degree of economic vulnerability, made the UN to classify all the countries in ECOWAS as Least Developed Countries (LDCs). Due to the inherent food security problems, none of the ECOWAS countries are self-sufficient in any agricultural commodity, apart from maize. The farm households in the region, therefore, often depend heavily on a narrow range of agricultural products for food security and are quite vulnerable to large fluctuations in commodity prices and international competition. Nevertheless, as an engine for economic growth, agriculture continues to have the highest potential, provided the regional and country specific productivity concerns are addressed.

Over the last decade, the growth in agricultural output and productivity in ECOWAS has been very mixed across the member nations. In countries, such as Cote d'Ivoire, Ghana and Mali, there has been a sharp increase in crop productivity, whereas in others such as Senegal and Niger, it has not been the same (SWAC, 2006).

 
 
 

Agricultural Economics Journal, Total Factor Productivity, TFP, Economic Community of West African States, ECOWAS, Technological Progress, Food and Agriculture Organization Statistics, FAOSTAT, Gross Domestic Product, GDP, Agricultural Output, Domestic Policy Measures, Technical Efficiency, Research and Development , R&D, World Trade Organization, WTO, Economic Liberalization.