Open AccessAccess to Credit and Farm Efficiency in Cameroon: A Data Envelopment Analysis Approach
Author(s) -
Orelien Tresor Feumba Tchamba
Publication year - 2021
Publication title -
south asian journal of social studies and economics
Language(s) - English
Resource type - Journals
ISSN - 2581-821X
DOI - 10.9734/sajsse/2021/v12i230303
Subject(s) - data envelopment analysis , tobit model , returns to scale , agriculture , sample (material) , economics , order (exchange) , scale (ratio) , business , econometrics , agricultural economics , environmental economics , microeconomics , statistics , production (economics) , finance , mathematics , geography , chemistry , archaeology , chromatography , cartography
The aims of this paper is to analyze the effect of access to credit on the technical efficiency of farms in Cameroon’s rural area. Using a sample of 545 farm households, we first estimate a Data Envelopment Analysis (DEA) model with constant returns to scale; then a censored TOBIT model enabling us to identify factors of efficiency, especially the effect of access to credit on efficiency. Two main results emerge from our analysis. First, we find that on average, the level of technical efficiency of farms is 56.78%; showing therefore the possibility of substantial efficiency gains. Second, farm size, association membership, and fertilizer expenditure negatively affect technical efficiency, while access to credit, age and education increase it. Based on these results, we believe that it’s interesting for farm householders to organize themselves in associations to benefit from available credits and financial facilities and to share their experiences in the agricultural field in order to improve their efficiency.