Do farm-level technical efficiency and welfare complement each other? Insight from Ghana’s cocoa industry

Journal of Economic Structures

The Official Journal of the Pan-Pacific Association of Input-Output Studies (PAPAIOS)

Table 3 Determinants of technical efficiency and the two-way impacts of efficiency and welfare

Variable	Impact of welfare on efficiency				Impact of efficiency on welfare
	¹OTE model (welfare)		²PTE model (welfare)		³Welfare model (OTE)		⁴Welfare model (PTE)
	ME	SE	ME	SE	ME	SE	ME	SE
Gender	− 0.010	0.031	0.135^a	0.052
Household size	0.004	0.004	0.007	0.004	0.012	0.018	− 0.004	0.077
Educational attainment					0.008	0.010	0.110^b	0.041
Spouse’s non-farm income	− 0.020	0.038	− 0.024	0.032	0.224^a	0.035	0.199^a	0.035
Income from cocoa farm					0.188^a	0.048	0.262^a	0.050
Income from other crops	− 0.001	0.002	0.002	0.007	0.009^b	0.003	0.004^b	0.002
Demonstration farm visit	0.035^b	0.016	− 0.010	0.015
Extension contact	0.008	0.006	0.000	0.006	0.021^b	0.008	0.018^b	0.008
Farm seminar attendance					0.085	0.101	0.005	0.054
Frequency of pesticides application	0.028^c	0.015	0.028^c	0.014	0.002	0.007	− 0.005	0.005
Number of farm plots	− 0.045^a	0.014	0.016	0.012
Farm size	− 0.007	0.011	0.097^a	0.033	0.015^b	0.007	0.190^a	0.013
East region	− 0.126^a	0.040	− 0.191^a	0.038	− 0.023	0.025	0.037	0.028
Brong-Ahafo region	− 0.029	0.060	− 0.232^a	0.054	0.025	0.027	0.006	0.008
Ashanti region	− 0.109^b	0.044	− 0.077^c	0.041	0.002	0.026	0.010	0.008
Log of welfare	0.224^c	0.134	0.940^a	0.307
OTE (CRS)					3.732^c	2.047
PTE (VRS)							1.695^a	0.417
Constant	0.362	0.336	2.592	0.710	0.112	1.648	2.752	0.252
/Insig_1	− 1.367^a	0.048	− 0.898^a	0.211	0.006	0.492	− 0.757^a	0.164
/Insig_2	− 1.126^a	0.031	− 1.099^a	0.033	− 1.368^a	0.315	− 1.408^a	0.031
/atanhrho_12	− 0.252^c	0.151	1.221^a	0.259	− 1.807^a	0.521	− 0.952^a	0.222

The superscripts “1–4” indicates the various models estimated
^a,b,cDenote significance level at 1%, 5% and 10%. ME and SE indicate marginal effects and standard errors, respectively. OTE and PTE denote overall technical efficiency and pure technical efficiency under the assumption of constant-return scale and variable-return scale, respectively