Training technology nexus and technical efficiency of apple farmers: an application of stochastic frontier approach

This study investigated the training technology nexus and technical efficiency of apple growers. In order to gauge the impact of training and technology on the technical efficiency of apple growers, we adopted Maximum Likelihood Estimates based on Stochastic Frontier Analysis. The empirical findings suggest that the training presented a negative effect on technical inefficiency of apple farmers and while the technology revealed positive relationship with technical inefficiency. Training tends to reduce the technical inefficiency while technology tends to augment inefficiency among the apple growers. This conduct of technology can be due to incompatible existing knowledge, environment, and resilience of farmers. Empirics of this study observed the range of technical efficiency scores between 0.43 minimum and 0.99 maximum with mean technical efficiency of 0.92 among apple farmers. The mean value of technical efficiency suggests that each farmer's production efficiency level was at 92% with existing inputs and production technology. The calculated RTS value 0.78 < 1 for the whole sample which implied that apple farmers were operating under constant return to scale regime.