Efficiency analysis of goat producers in Ghana: An instrumental variable approach

Agriculture and economic growth nexus is a phenomenon that needs critical attention. In Ghana, about 70% of the population derives their livelihood from crop and livestock production. Therefore, exploring the factors that influence livestock production efficiency is important. This study investigates the technical efficiency (TE) of goat farmers in Ghana using survey data collected from the Upper West region. An instrumental variable (IV) and data envelope analysis (DEA) are employed to analysis the goat farmers' TE. The study results revealed that the majority of the goat farmers are producing below the frontier with average technical efficiency of 0.724, 0.313 and 0.431 for variable returns to scale (VRS), constant returns to scale (CRS) and scale efficiency SE respectively. The role of variables such as access to credit, access to extension officers, years of farming experience, being an association member and off-farm income are significant in achieving higher TE. Also, insufficient capital, inadequate credit facilities and extension officers are the three major problems confronting farmers in the study areas. Our findings provide policy implications to curtail credit constraints and enhance the artisanal fishermen TE.