Analyzing the technical performance of cotton farmers in developing countries: The case of Burkina Faso

Abstract: In this study the technical efficiency of 142 cotton farmers in Burkina Faso has been estimated. The aim has been to detect the technical efficiency and to explain it by socioeconomic factors. For this, a model has been created where the technical efficiency is regressed against certain socioeconomic variables. The database for this study, which has been collected from the main agricultural zones in Burkina Faso - West, North and East - has been provided by INERA. The database has been complemented through field studies to cotton producing villages and systemized by the authors. The software package Frontier has been used to conduct the necessary statistical regressions for a sample of 142 cotton farmers. The technical efficiency scores have been obtained by using a stochastic production function approach in a two stage estimation process. The result from the Frontier estimation outputs shows that there is not much room for improvement of technical efficiency. Thereby an increase in technical efficiency of Burkina Faso’s cotton producers is not the way to go in order to increase the cotton production. However, from the chosen socioeconomic variables, it can be detected that the producers that have received agricultural training are more productive than those who have not. Also, specialization on cotton production yields higher productivity. However, due to the fact that the cotton farmers can already be considered efficient given the present state of technology and inputs, domestic efforts are not enough rather the efforts has to be put on reducing the international trade barriers in order to increase the development of Burkina Faso.