Journal of
Development and Agricultural Economics

  • Abbreviation: J. Dev. Agric. Econ.
  • Language: English
  • ISSN: 2006-9774
  • DOI: 10.5897/JDAE
  • Start Year: 2009
  • Published Articles: 547

Article in Press

COMPARATIVE ANALYSIS OF ECONOMIC AND TECHNICAL EFFICIENCY IN CRAYFISH PRODUCTION IN OIL AND NON-OIL PRODUCING COMMUNITIES OF AKWA IBOM STATE,NIGERIA

Nyong Eteyen Edet

  •  Received: 20 October 2016
  •  Accepted: 15 June 2018
The paper examined the comparative economic and technical efficiency of resource utilization in cray fish production in oil and non-oil producing communities of Akwa Ibom, Nigeria, using a production function approach. Data for the study were obtained from a cross section of 40 respondents each from both oil and non-oil producing areas using a multi-stage sampling procedure. Regression results indicated that capital, fixed costs and fuel were not significant (P < 0.05) determinants of output in oil producing communities. The index of resource-use efficiency revealed that respondents from oil producing communities were not only inefficient in the allocation of productive resources, but grossly over-utilized, capital, fuel, labour and fixed costs with an allocative efficiency index of 0.0761, 0.00043, 0.00770, and 0.005324, respectively. However, respondents from non-oil producing communities were inefficient in the allocative of productive resources, and also under-utilized fixed costs, fuel and labour with and allocative efficiency index of 2.3010, 4.562, and 3.315, respectively. Given the over-utilization of fixed costs, labour, and fuel strategies and policies aimed at controlling and monitoring the activities oil companies oil exploration and exploitation in oil producing communities will thus significantly improve efficiency of utilization of resources; but, given the under-utilization of resources in non-oil producing areas, strategies aimed at sensitization of crayfish farmers on efficient utilization of resources become imperative.Generally, access to insurance scheme, effective extension service delivery programme, access to loan at one digit rate will raise output and net returns in crayfish production.

Keywords: STRATEGIES; RESOURCES; OIL AND NON-OIL PRODUCING; TECHNICAL &ECONOMIC EFFICIENCY