TECHNOLOGICAL CHANGE AND EFFICIENCY UNDER TRANSACTION COSTS: THE CASE OF SMALLHOLDER SORGHUM PRODUCTION IN EASTERN UGANDA

摘要

This paper undertakes production analysis to discern whether improved sorghum technology has led to technological change in sorghum production in Uganda. Results indicate that the production function has not yet undergone structural change between traditional and improved technologies despite the efforts and policy focus to achieve agricultural growth through agricultural research and technology transfer. We also use returns to scale measure to assess the efficiency of smallholder sorghum production under transactions costs. The aim is to contribute to the current policy debate on the efficiency of small farms. Cost analysis shows increasing returns to scale (inefficiency) and unexploited economies of scale in sorghum production. We recommend a balanced and varied approach to enhance efficiency and agricultural growth including policy measures to reduce transactions costs.