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Abstract
This paper explored the Benin agricultural productivity and profitability under occurred reform
since 1961 to 2008. Productivity and profitability has been evaluated using the new approach
developed by O’Donnell(2008).In the approach Productivity is obtain using Hick Moorsteen
index decomposition into Technical Change, mix Efficiency change and Scale Efficiency
Change while Profitability is obtain using productivity and Term of Trade product. To achieved
the purpose of this paper, agricultural output-input quantity and prices data have been collected
from FAO stat, Benin Country FAO statistical database and Benin National Agricultural Institute
Database during the period 1961-2008. All data are computing using the DPIN software
developed by O’Donnell (2010).
It is found that since the country national independency in 1961, Benin agriculture productivity
has decreased. The decreased has been more significant after the sector liberalization while the
term of trade has been much improved and profitability increased. This situation explains that
after the liberalization, competiveness has decreased and monopolization increased. It can be
conclude that most private stakeholder involve in the sector during post liberalization has earn
more profit than invest to contribute at the sector productivity growth.
The paper indentify that the country doesn’t improved agricultural productivity after the sector
liberalization in opposite to the normal figure that liberalization will stimulate technology
transfer and development which will improve productivity. The situation will then highlight
policies maker to identify news strategy which can help to optimize the production and
agriculture resources efficiency.