Decomposition Analysis of Technological Change in Rice Production in Ghana

Abstract

The study was conducted in Ejura-Sekyedumase Municipality of the Ashanti Region and the Atebubu-Amantin Municipality in the Brong-Ahafo Region of Ghana, in May 2013, to investigate the technological change in rice production in the two municipalities in Ghana using the output decomposition analysis approach. The study adopted a descriptive research design, based on a cross-sectional survey strategy. The study involved 216 sampled smallholder rice farmers (107 adopters of the improved variety and 109 non-adopters) using a three-stage stratified random sampling method involving operational areas, communities, and farmers. Data were collected by trained agricultural extension agents and monitored by the researchers. The Cobb-Douglas production and a modified decomposition analyses techniques were used to decompose the sources of productivity differences between the improved rice variety and the unimproved rice variety. Out of 216 rice farmers sampled, 208 completed their questionnaires. The study found that seed, fertiliser, and herbicide had a significant influence on the yield of the improved and unimproved rice varieties. Further, the ratios of the marginal value product to marginal factor costs were equal to unity for all the inputs, except labour; an indication that the resources were underutilised. The decomposition analysis showed that the estimated productivity differences between the improved and unimproved rice varieties were 39.46 percent. Productivity differences between the improved and unimproved rice varieties were mainly due to non-neutral technical change, which accounted for 44.65 percent. The study concludes that technological change in rice production in the two municipalities was mainly of the non-neutral type. Designing appropriate extension strategies and capacity building for the rice farmers could lead to improvement in their productivity.