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Factors affecting efficiency of smallholder cocoa farmers: A tobit model application in Malaysia

Fadzim, Wan Roshidah and Azman Aziz, Mukhriz Izraf and Che Mat, Siti Hadijah and Maamor, Selamah (2016) Factors affecting efficiency of smallholder cocoa farmers: A tobit model application in Malaysia. International Journal of Economics and Financial Issues, 6 (7). pp. 115-119. ISSN 2146-4138

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Abstract

The determinants technical efficiency among smallholder cocoa farmers has been well studied in agricultural literature. Among the factors identified are the demographic characteristics that affect farmers’ decision-making process and the ability of farmers to execute the decision effectively.In Malaysia, cocoa production is characterized by several problems that lead to low productivity.The low productivity has resulted in the continuous fall in percentage share of cocoa output since 2001. Accordingly, this study explores the determinants of technical efficiency among cocoa farmers in Malaysia. The study relies upon primary data gathered during the 2013 production season. Data are collected from a set of structured questionnaire administered on 375 smallholder cocoa farmers throughout Malaysia. Results of the analysis show that record keeping, level of knowledge and status of farmers (either part-time or full-time basis) affects efficiency. This finding suggests that policies that would directly affect these identified variables should be pursued.

Item Type: Article
Uncontrolled Keywords: Cocoa, Technical Efficiency, Tobit Analysis
Subjects: H Social Sciences > HC Economic History and Conditions
Divisions: School of Economics, Finance & Banking
Depositing User: Mrs. Norazmilah Yaakub
Date Deposited: 01 Nov 2020 01:49
Last Modified: 01 Nov 2020 01:49
URI: https://repo.uum.edu.my/id/eprint/27811

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