MODELLING INVESTMENTS IN COTTON PRODUCTION IN THE MUNICIPAL AREAS OF KOUANDÉ AND KÉROU IN THE NORTHERN PART OF REPUBLIC OF BENIN, WEST AFRICA

Abstract

This study aims at analysing the effects of the investments in cotton production on the output elasticity in Kouandé and Kérou, Republic of Benin, West Africa. Data were collected from June to September 2012 by surveying one hundred and forty (140) cotton farmers, randomly selected in the study area. The Cobb-Douglas and Translog models were estimated by considering six (06) inputs, namely:  acreage of cotton, quantities of mineral fertilisers used, insecticides, herbicides, capital and family labour. The results revealed that the average acreage of cotton per farmer was 3.05 ha. Per hectare, farmers used on average 145.01 Man-Day of family labour, 305.15 kg of fertilisers (NPK and Urea), 1826.30 ml of insecticides (Thian, Serfox, Tunder, and Miticide), 3692.70 ml of herbicides (Calah and Califor G), and Francs CFA 42411 as capital. The Cobb-Douglas model showed that investing in land, mineral fertilisers, insecticides, and herbicides was technically efficient. In contrast, the Translog model revealed that the cotton productivity was rather determined by the interactions between “labour and herbicidesâ€, “labour and capitalâ€, and “capital and herbicidesâ€; which have significantly impacts on the cotton output elasticity. Among these options, only the combination “labour and herbicides†ensure a positive and significant output elasticity and therefore, appears to be the best investment alternative.