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TECHNICAL EFFICIENCY OF RATTAN-BASED ENTERPRISES IN SOUTH WESTERN NIGERIA
(Department of Forestry, Nasarawa State University Keffi., 2014-09-26) Akinyemi, O.; Oluwalana, S.A.; Momoh, S.; Aduradola, M.; Egbewole, Z.T.
The study examined the technical efficiency of rattan-based enterprises in South Western Nigeria. Multistage Sampling technique was adopted to select 121 rattan cane processors in Lagos, Ogun and Oyo States and data were collected through administration of structure questionnaire. Stochastic Frontier production function was used to estimate the technical efficiency of rattan-based enterprises. The result of the maximum likelihood estimate of the stochastic Frontier showed that sigma (S = 0.979) and the gamma (Z = 0.183) were statistically significant at 1% probability level. The estimated gamma value indicated that about 18.3% of the variability in output was not explained by the selected explanatory variables. Findings showed that land area occupied by the enterprise and capital were statistically significant respectively (P<0.05). The technical efficiency indices ranged from 0.67 and 0.98 with a mean of 0.85 implying S5% efficiency level. Education and gender were important determinants of technical efficiency (P<0.05) in rattan-based enterprise. The study recommends the need for upgrading the skills and developing the processing capacity of rattan-based enterprises.