Analysis of Economic Efficiency of Small-scale Onion Production in Volcanic Highlands in Rwanda

Onion is recognized for its nutritional value, its curative capacities and its fitness to flavor diets. This article attempted to assess the economic efficiency of input combinations among onion farmers in the Volcanic Highlands in Rwanda. Data were collected using a questionnaire administered to a random sample of 94 small-scale onion producers. Cobb-Douglas type stochastic frontier functions were specified and estimated using maximum likelihood method to estimate technical, allocative, and economic efficiencies of onion production. A simultaneous-equations model was specified and estimated with seemingly unrelated regression method to identify the sources of technical, allocative, and economic efficiencies.