Technical Efficiency of the Small-Scale Batik Production: Evidence from the Central Region of Ghana

Abstract

This paper examined technical efficiency of small-scale batik production in the Ghanaian economy. A sample of 400 Batik producers was interviewed for the purpose from the Central Region of Ghana. The Stochastic Frontier approach was used in determining the levels of technical efficiency of the Batik producers, after which the determinants of the technical efficiency were also estimated. Results indicate that the mean technical efficiency of Ghana’s batik production industry was 66.5 percent on the average: ranging from 8.4 to 99.6 percent. The wide variation in the level of efficiency suggests that there was ample opportunity for these enterprises to raise their level of efficiency. The level of education, business experience, and training programs of entrepreneur and accessibility to credit were found to be highly positively significant in affecting the level of efficiency of the batik enterprises. The study suggest that more resources be invested in the training of the entrepreneurs, access to credit should be improved, to increase the technical efficiency of batik entrepreneurs in Ghana.