An Economic Assessment of Banana Genetic Improvement and ...

BANANA PRODUCTIVITY AND TECHNICAL EFFICIENCY IN UGANDA 125
Table 8A.2 Two-stage least squares estimates of the production function for cooking
bananas (endogeneity test)
Overall Low elevation High elevation
Variable
Coefficient t-value Coefficient t-value Coefficient t-value
Constant 6.44*** 7.48 6.229*** 7.39 5.426*** 3.37
ln(A) 0.532*** 6.53 0.516*** 6.10 0.256** 2.48
ln(L) 0.104 0.76 0.112 0.81 0.427* 1.8
M 0.00003* 1.77 0.0001** 2.28 0.00002** 2.32
G 0.00001 0.41 0.00006 0.76 0.000001 0.48
C 0.00003 1.17 0.00003 0.59 0.00003* 1.83
farm size 0.01** 2.03 0.003 0.52 0.018*** 2.6
Ext 0.016 0.76 –0.0001 –0.01 0.124*** 4.78
plotage 0.032*** 4.36 0.039*** 3.59 0.005 0.92
plotage 2 –0.0002*** –2.78 –0.0003** –2.00 0.00002 0.31
Sigatoka –0.096 –0.58 0.015 0.08 –0.542 –0.98
weevils –0.108 –0.85 0.01 0.06 –0.114 –0.86
High elevation 0.715*** 5.99
Residual a 0.384** 2.60 0.383** 2.57 –0.145 –0.58
Adjusted R 2 0.662 0.491 0.687
Notes: ***, **, and * indicate statistical significance at the 1, 5, and 10 percent levels, respectively. See Table
8.1 for definitions of the variables. A blank entry indicates that the variable was not included in the regression.
See Table 8.1 for definitions of the variables.
a Residual is from the first-stage estimation (the labor equation); variables included in the labor equation
are area under cooking bananas, wage/price ratio, distance to paved roads, household characteristics (size,
composition, age education, and gender), and village characteristics representing opportunities (farm wage
income, nonfarm wage income, salary income, and self-employment earnings).