Analysis of Maize Production Economic Efficiency and its Determinants in Nigeria

The study analyzed maize production economic efficiency using cost minimizing Data Envelopment Analysis (DEA). Factors affecting economic efficiency were determined using Ordinary Least Squares (OLS) regression model. The study used secondary annual data from 1971 to 2010. The result revealed that the country registered 100% economic efficiency score at a frequency of 4 which accounted for a low level of economic efficiency of 10% of the total observations. Mean efficiency values are found to be 90.5%, 77% and 69.3% for technical, allocative and economic efficiencies, respectively. From 2006-2010 the efficiency scores represent 99.5%, 94.1% and 93.7% for technical, allocative and economic efficiencies, respectively. For the determinants of economic efficiency, the result showed that, research and development spending; producer price and number of tractors in use had positive and significant impact on economic efficiency. Therefore, they should be the policy priorities for improving maize production economic efficiency in Nigeria. Keywords - Allocative Efficiency, Economic Efficiency, Data Envelopment Analysis, Technical Efficiency, Ordinary Least Squares Model, Maize