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Abstract

The impacts of trade and trade risk on efficiency and productivity of Asia and Sub-Saharan Africa agriculture sector is examined using an extended stochastic frontier analysis econometric model. The extended models links the random and one-sided error term of stochastic frontier analysis to technical efficiency and productivity, respectively. The model estimates primal production function equation, efficiency function equation and productivity function equation, simultaneously. A panel of 17 Asian countries and 32 Sub-Saharan African countries from 1970 to 2010 shows differential impact of trade openness, short-term and long-term trade openness risk on efficiency and productivity.

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