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Abstract

This article applies frontier production function analysis to small farms in Nicaragua during 1998-2005 (Battese and Coelli, 1988). The objective of this study is to estimate an average function that will provide a picture of the shape of the organic fertilizer technology of an average firm (in our case, agricultural production units). Furthermore I present a best-practice of organic fertilizer against which the efficiency of the firms within the primary sector can be measured (Coelli, T: 1995). The results show an average of technical efficiency acceptable which the makers of public policy in Nicaragua must considerer for the future. It is imperative if we consider an economy activity indexes that have increased during this period.

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