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
JULY, 2019