Kolawole O.
Abstract
This paper comparatively examines technical and input-specific allocative efficiencies of aquaculture farms in
Southwestern, Nigeria. Using a pre-tested and well structured questionnaire, a total of 160 farms were randomly
selected from four states (Ondo, Ekiti, Oyo and Ogun states) across the region. The econometric applications of
the stochastic frontier production models provide a measure of the technical efficiency of the farms. The
returns-to-scale results shows that an average farm in Ekiti and Osun states exhibit increasing returns-to-scale
while those in Ogun and Ondo exhibit decreasing returns to scale. Using estimates from the stochastic frontier
production models, we computed the marginal value product and marginal factor cost for the variable inputs, to
investigate input-specific allocative efficiency. The results show that none of the farms across the states
optimally used the variable inputs considered in the study. Most farms were found to have either underused feeds or
overused labour across the states. The estimated technical efficiency shows that about 11%, 18%, 22%, and 44% of
outputs of the farms in Ogun, Ondo, Ekiti and Osun states are forgone due to inefficiency, respectively. We suggested
that policies that address the improvement in the technical efficiency of the farms as well as, optimal input
utilization will have a great implication on aquaculture development in the country.
Key words:
Aquaculture, Technical efficiency, Input-specific Allocative efficiency, Nigeria