Abstract:
Technical efficiency of resource-use, particularly in salt production is a major concern
for the level of productivity and profitability of salt miners depend on it. Thus, the study
was conducted to estimate the level of technical efficiency among small scale salt
producers in Elmina. The study used the entire population of 96 salt producers in
Elmina. The study reveals that, Cobb-Douglas stochastic production frontier best fits
small scale salt producers in Elmina. The results of the mean technical efficiency reveal
that, small scale salt producers were not fully technically efficient as the mean technical
efficiency is 37.8%. Among the five (5) salt socio-economic variables employed, the
technical efficiency model indicates that the number of ponds is statistically significant
at 1%, but inversely correlated with technical efficiency. However, the coefficient of
interest paid on loans is negative but significant at 5%. Moreover, level of education and
distance from the campsite to homestead are significant at 10% levels and positive. The
results of the study suggest that, number of ponds and interest paid on loans play an
integral role in increasing the level of technical efficiency among small-scale salt
producers in Elmina. The major recommendations of the study include Government,
Minerals Commission and District Assembly should liaise with various financial
institutions to provide interest free loans or loans at affordable interest rate to small-scale
salt producers to undertake capital and labour investment as a panacea for increasing
efficiency. Also, the Minerals Commission, District Assembly and chiefs should educate
the small-scale salt producers on the need to develop and mine few walls (ponds) since
they are under resourced. This will help improve on the technical efficiency among the
small-scale salt miners in Elmina.
Description:
A thesis in the Department of Economics Education, Faculty
of Social Sciences Education, submitted to the School of
Graduate Studies in partial fulfillment
of the requirements for the award of the degree of
Master of Philosophy
(Economics)
in the University of Education, Winneba