The ripple effect of credit accessibility on the technical efficiency of maize farmers in Ghana

The purpose of this study is to examine the impact of access to credit on technical efficiency (TE) of maize farmers in a developing, Ghana. The study employed an instrumental variable approach and the stochastic frontier method for the estimation of the results. The study found that farmers who have access to agricultural credit stand the chance of increasing technical efficiency by a margin of 5%, which also influences the maize production than those who did not have access to credit. The average TE score of the farmers was 47.6%. The study also found out that factors like membership, gender, farmers' access to credit, age and social network determine farmers' possibility of accessing agricultural credit. The study finds out that returns to size in on the increases among the maize farmers and that significant improvement in efficiency can realize by increasing the level of input used in production. Also, factors such as farm size, labor, seeds, and fertilizer are the essential determinants of maize production output. Also, gender, extension, age, off-farm income, access to credit and membership were significant factors influencing TI. The paper contributes to the existing literature on agricultural credit on rural agricultural development. This paper also provides information to government policy-makers, practitioners and all other stakeholders in the maize sub-sectors and also will benefit small farmers outside the study area.