Economics of Yams Production in Rivers State

This research work was on the economics of yam production in Rivers State. The objectives of the study were: estimating the production function of yam in Rivers State using cob-Douglas production, determining the marginal physical product (mpp) of labour and capital, determine the optimum level of inputs required for attaining the optimum in yam production in Rivers State and determining the marginal Rate of Technical substitution (MRTS) of labour for capital in Rivers State. Methodology: Analytical tool used in the study include multistage sampling technique, random sampling, ordinary least square regression (OLSR) marginal physical product (mpp) function. The study revealed that all the independent variables land(x1), Labour(x2) and capital(x3) were positively related to the dependent variable (Yam yield y). Findings: The coefficient of multiple determination (R2) was 0.67(67%). The study further revealed that one unit increase of yam yield will require 0.8626 unit of labour and a marginal unit of labour will reduce yam yield by –0.544. For there to be optimum level of yam yield, the farmer will use 0.12 extra unit of capital. Recommendations: The study recommended that the farmer should substitute labour for capital or vice versa until a point where output is maximum.