PR - RESOURCES USE, TECHNICAL EFFICIENCY OF MAIZE INDUSTRY AND PERFORMANCE OF THE SOUTH AFRICAN ECONOMY

Abstract

Given the significance of maize within the overall food security strategies in Sub- Saharan Africa including South Africa, it is important to analyse the technical efficiency of the maize industry for the overall development of the economy. This article analyzes the impact of labor productivity, import price of the world, research and development on technical efficiency of maize industry in South Africa using a Computable General Equilibrium model and South Africa Social Accounting Matrix. The result revealed that maize producers used less intermediate inputs, value-added drops, increased export and reduced import due to an increase in production. Despite the rise in maize output, the demand for labour reduced. This was due to the indirect effect than a direct effect of the maize sector technical efficiency improvements. The study recommends that the improvement of technical efficiency directly related to competitiveness and welfare, therefore, in spite of employment reducing effect, the government should pursue to increase the rate of technical development.

Keywords: Labour productivity; Research and Development; Maize industry; Technical efficiency