Investigating the Link Between Human Health and Technical Efficiency: A Case Study of Oil Palm Processors in Nigeria

Abstract

The relationship between health status and technical efficiency cannot be over-emphasized although most researchers in the past have failed to recognize the possibility of an existing relationship between these variables. This study examined the cost implication of illnesses and their effect on the technical efficiency of oil palm processors in Edo State. A multistage sampling procedure was used to select 210 oil palm fruit processors in the study area. Data were analyzed using frequency counts, percentages, Cost-of-Illness estimation and Stochastic Production Frontier Analysis (SPF). Results revealed that the major illnesses experienced by the processors were malaria (100.0%), cough and catarrh (100.0%), back pain (98.8%), skin rash (78.9%) and nausea (76.6%). The estimated cost of illness was N165,338.80 with total time cost contributing 97.02% of this value for the period under consideration. SPF revealed that the mean technical efficiency of the oil palm processors was 0.75. Furthermore, palm fruits (β = 0.662, p<0.01), the volume of water used (β = 0.180, p<0.05), labor (β = 0.415, p<0.01) and processing experience (β = -0.110, p<0.05) increased the production of palm oil, while days of incapacitation (β = 0.445, p<0.01) increased technical inefficiency. The study concluded that illnesses had a negative influence on the technical efficiency of oil palm processors. The study recommended that stakeholders should create awareness of a healthy lifestyle and practical ways to maintain good health while ensuring continuous production.