Trends in Agricultural Production Efficiency and Its Implications for Food Security in Sub-Saharan African Countries
AbstractThe main objective of this paper is to estimate trends in the agricultural sector production efficiency of a cross-section of African countries over time using panel data and data envelopment type analysis in order to assess the state of food security, or insecurity in the African continent. In particular, the study employs data for 49 African countries from 1995 to 2012 to estimate the year to year agricultural efficiency for cereal, crop, food, and non-food sectors against natural inputs for the agricultural sector. We analyze the determinants of annual efficiency scores and their growth rate, and subsequently investigate the impact of agriculture efficiency on food security. We find that the agriculture aid, capital infrastructure for the agriculture industry, sanitation, and good governance are the main drivers of agriculture efficiency and its growth. We find that a large portion Africa’s agriculture sector growth for the period under consideration can be attributed to technical progress as opposed to efficiency changes. Substantively, we find that agricultural efficiency has a positive and significant effect impact on food security in Africa.
Key Words: Technical and Allocative Efficiency, Agricultural production Efficiency Food Security, Africa, Data Envelopment Analysis (DEA), Food Security, and Africa
JEL: D21, D24, L23 L25, 012
Keywords: Food Security, agricultural production efficiency, data envelopment analysis (DEA), African countries