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Abstract
The current food crisis all over the globe has necessitated alternative policy actions by
various stakeholders in almost all countries of the world. Consequently, efforts are focused
on increased investment in agricultural research and development. The study evaluates
impact of technological innovations on estimates of technical, allocative and cost efficiency
from a parametric stochastic and non-parametric distance functions. Inefficiency effects are
modelled in a second stage endogeniety-corrected Tobit regression model as a function of
technological innovation and other policy variables. The results from both approaches show
there is substantial technical, allocative and cost inefficiency in maize production and that
analysis of technical, allocative and cost efficiency with respect to technological innovation
and other policy factors are robust. Our results show that policies aimed at maize technology
development and their timely dissemination, improvement in education, access to credit and
extension among others could promote technical, allocative and cost efficiency, reduce yield
variability, enhance farm income, food security and reduce poverty in Nigeria.