Technological Innovation and Efficiency in the Nigerian Maize Sector: Parametric Stochastic and Non-parametic Distance Function Approaches

The current food crisis all over the globe has necessitated alternative policy actions byvarious stakeholders in almost all countries of the world. Consequently, efforts are focusedon increased investment in agricultural research and development. The study evaluatesimpact of technological innovations on estimates of technical, allocative and cost efficiencyfrom a parametric stochastic and non-parametric distance functions. Inefficiency effects aremodelled in a second stage endogeniety-corrected Tobit regression model as a function oftechnological innovation and other policy variables. The results from both approaches showthere is substantial technical, allocative and cost inefficiency in maize production and thatanalysis of technical, allocative and cost efficiency with respect to technological innovationand other policy factors are robust. Our results show that policies aimed at maize technologydevelopment and their timely dissemination, improvement in education, access to credit andextension among others could promote technical, allocative and cost efficiency, reduce yieldvariability, enhance farm income, food security and reduce poverty in Nigeria.