Type | Working Paper |
Title | Human Capital, Culture, Markets Access and Productive Inefficiency in a Diversified Open Economy—Empirical Evidence from Rural Haiti |
Author(s) | |
Publication (Day/Month/Year) | 2008 |
URL | https://sta.uwi.edu/nlc/2008/documents/papers/SirLewisPaper_ SJacob.pdf |
Abstract | Haiti is the most open economy in the Caribbean Region. Trade liberalization policy was adopted therein between 1986 and 1996, and negatively impacted the agricultural sector (Jacob 2002, 2003, 2004, 2008) which is still very important in the economy—providing 25% of Gross Domestic Product (GDP), 50% of total employment, 46% of total food requirements of the population, and (to a lesser extent) 5.5% on total exports (compared with 50% in 1980 and 10% in 1990). Using a unique primary cross sectional data set of 815 household farms—collected in 2006—, We estimate productive efficiency under non parametric Constant Return to Scale (CRS) DEA (Data envelopment analysis) model (Jacob 2008). Inefficiency scores were then measured as deviation from the best practices frontier (Featherstone, Langemeier, and Ismet 1997), and model, using Tobit procedures (McDonald and Moffitt 1980; Maddala 1983), the determinants that are linked with. We first show the causal role of cultural beliefs and religious practices on farmers’ efficiency. After controlling for a set of exogenous variables, the findings show the crucial role human capital as an asset for increasing efficiency while market access difficulties, and slow-moving cultural practices inherited from previous generations have a negative impact. In order to quantify the impact on technical efficiency of changes in the explanatory variables, the estimated coefficients (the total effects) are decomposed in: (i) the conditional variation in uncensored values of inefficiency themselves, and (ii) the variation in the probability of the dependent variable to fall in the uncensored part of the distribution (MacDonald and Moffitt 1980; Roncek 1992). Policy makers should pay attention to factors associated with inefficiency for poverty alleviation interventions. |
» | Haiti - Recensement Général de la Population et de l'Habitat 2003 |