Grové, B.Jordaan, H.Matthews, N.Van der Merwe, Esté2016-01-082016-01-082012-01-312008-08-162012-01-31http://hdl.handle.net/11660/2066English: The main objective of this study was to explore the relationship between economic literacy and allocative efficiency of small-scale producers in South Africa. The study was conducted in Eksteenskuil, where small-scale producers export raisins via the fairtrade initiative. Data regarding production inputs and their relative prices was gathered by means of a structured questionnaire survey. The allocative efficiency of farmers was calculated by means of cost efficiency, using a mathematical linear programming technique called Data Envelopment Analysis (DEA). The inputs that were used to calculate the respondents’ cost efficiency were fertiliser in the form of nitrogen, phosphate and potassium, labour, and fuel. It was hypothesised that economic literacy of individuals will have an effect on the ability of the producers to allocate their resources efficiently. The economic literacy of respondents was measured by means of proxy variables presented in the questionnaire. The economic literacy variables were regressed on cost efficiency by making use of the Tobit Regression Model since the dependent variable is bounded from above. The results from the DEA showed substantial inefficiencies among the small-scale raisin producers of Eksteenskuil, indicating that a significant capacity for cost efficiency improvement exists. By improving cost efficiency of producers, profit of producers will also increase. Economic literacy of raisin producers was measured to be below average. The total economic literacy score of respondents was found not to have a significant effect on their cost efficiency. However, some of the individual proxies for economic literacy were found to influence cost efficiency. Economic literacy questions were divided into two groups. The applied economic concept group: where respondents needed to think about the question, exhibit knowledge and make a rational decision. And the comprehension economic concept group: where respondents’ knowledge on economics surrounding their farms, was tested. Interestingly, only questions from the applied economic concept group were found to have a statistically significant effect on the cost efficiency of respondents. Socio-economic factors of respondents were further measured in order to understand the characteristics associated with higher economic literacy levels of respondents. The hypothesised socio-economic factors were regressed on the statistically significant economic literacy questions found in the Tobit Regression Model. A Probit Regression Model and an Ordinary Least Squares (OLS) Regression Model were used to determine the effect of socio-economic factors on specific economic literacy questions. Most of the factors that were statistically significant in influencing economic literacy, relate to activities undertaken by the farmers to increase human capital. Other factors that were found to contribute to economic literacy, relate to farm specific factors like farm size and specialisation. The results show that economic literacy does affect the decision-making ability of individuals when it comes to the allocation of production inputs. Cost inefficiencies can be improved by improving the economic literacy of respondents. One of the important ways to improve economic literacy of smallscale producers is by simplified, goal-oriented, practical training related to the individuals’ specific farming practices.Afrikaans: Die hoofdoel van hierdie studie was om die verhouding tussen ekonomiese geletterdheid en allokasie doeltreffendheid van kleinskaalse produsente in Suid Afrika te verken. Die studie is uitgevoer in Eksteenskuil, waar kleinskaalse produsente rosyne uitvoer via die fairtrade inisiatief. Data in verband met produksie insette en inset pryse, is deur middel van ‘n gestruktureerde vraelys ingesamel. Die allokasie doeltreffendheid van produsente is bereken deur die meet van koste doeltreffendheid, met behulp van ‘n wiskundige lineêre programmeringstegniek, wat Data Envelopment Analysis (DEA) genoem word. Die insette wat gebruik is om koste doeltreffendheid van produsente te bereken sluit kunsmis in die vorm van stikstof, fosfaat en kaluim, arbeid, en brandstof in. ‘n Hipotese is gevorm dat ekonomiese geletterdheid van produsente ‘n uitwerking sal hê op die vermoë van die produsente om hul hulpbronne doeltreffend te allokeer. Die ekonomiese geletterdheid van die produsente is deur middel van ‘n ekonomiese geletterdheid vraelys gemeet. Die effek wat die ekonomiese geletterdheid vrae op koste doeltreffendheid het, is gemeet deur van die Tobit Regressie Model gebruik te maak omdat die afhanklike veranderlike van bo begrens is. Die DEA resultate het ‘n aansienklike koste-ondoeltreffendheid onder die kleinskaalse rosyntjie produsente van Eksteenskuil gevind. Dit dui aan dat daar ‘n beduidende kapasiteit vir koste doeltreffendheid verbeteringe bestaan. Deur die koste doeltreffendheid van produsente te verbeter sal die wins wat produsente maak ook toeneem. Die ekonomiese geletterdheid van rosyntjie produsente blyk onder gemiddeld te wees. Die totale ekonomiese geletterdheid telling van produsente is gevind om nie ‘n betekenisvolle uitwerking te hê op die koste doeltreffendheid waarmee hul produseer nie. Daar is egter gevind dat van die individuele ekonomiese geletterdheid vrae ‘n betekenisvolle uitwerking op die koste doeltreffendhied van produsente het. Die verskillende ekonomiese geletterdheid vrae is in twee groepe gedeel. Die eerste groep, die toegepaste ekonomiese konsep groep, vra dat produsente moes dink oor die vraag, kennis moes toon, en ‘n rasionele besluit moes neem. In die tweede groep, die begrip van ekonomiese konsepte groep, is hul kennis van ekonomiese konsepte, met betrekking tot hul plaas getoets. Slegs ekonomiese geletterdheid vrae uit die toegepaste ekonomiese konsep groep het ‘n betekenisvolle uitwerking op koste doeltreffendheid van produsente gehad. Sosio-ekonomiese faktore van die produsente is verder gemeet ten einde die eienskappe wat verband hou met ‘n hoër eknomiese geletterdheidsvlak van produsente, te verstaan. Die effek van sosio-ekonomiese faktore is gemeet op die ekonomiese geletterdheid vrae wat betekenisvol gevind is in die Tobit Regressie Model. ‘n Probit Regressie Model en ‘n gewone Kleinste Kwadrate (OLS) Regressie Model is gebruik om die effek van sosio- ekonomiese faktore op die spesifieke ekonomiese geletterdheid vrae te bepaal. Die meeste van die sosio-ekonomiese faktore wat betekenisvol gevind is om ekonomiese geletterdheid van produsente te beinvloed; is sosio-ekonomiese faktore wat verband hou met die verhoging van menslike kapitaal van produsente. Ander faktore wat betekenisvol gevind is, sluit plaas spesifieke faktore soos grootte van die plaas en spesialisasie op die plaas in. Die resultate het getoon dat sekere aspekte van ekonomiese geletterdheid wel ‘n effek het op die doeltreffendheid waarmee produsente insette allokeer. Koste ondoeltreffendheid kan verbeter word deur die verbetering van die ekonomiese geletterdheid van produsente. Een van die belangrikste maniere om die ekonomiese geletterdheid van kleinskaalse produsente te verbeter is deur vereenvoudigde, doelgerigte praktiese opleiding aan te bied wat van toepassing is op die produsente se spesifieke boerderypraktyke.enDissertation (M.Sc.Agric. (Agricultural Economics))--University of the Free State, 2012Agriculture -- Economic aspectsAgriculture -- Cost effectivenessOrdinary least squares regressionProbit regressionTobit regressionAllocative efficiencyCost efficiencyEconomic literacyData envelopment analysisDissertationUniversity of the Free State