Water-Saving Technologies and Total Factor Productivity Growth in Small Horticultural Farms in Algeria

Investment in water-saving technologies (WST) was always considered as a solution to manage water demand. Indeed, the adoption of these techniques allows the use of less water in the agricultural production process. Actually, the WST have been widely promoted in Algeria in the last two decades. However, little research exists to support popular claims about their effectiveness. This study aims first, to identify the inputs use differentials between farmers using WST and traditional techniques (gravity irrigation) and, second, to evaluate the impact of WST use on total factor productivity growth (TFP) and determine the contribution of the different inputs in the overall TFP growth of small-scale horticultural farms in the northeastern Algeria (Jijel region). The Tornqvist-Theil index was used for the computation and decomposition of TFP. The results show that the differences of water consumption, gross margin, water productivity and water value indicators between the two groups of farms are statistically significant at 5%. The output growth differential between WST users and non-users is on average 12.73%. It is composed of 6.65% from input growth and 6.08% from TFP growth. Alternatively, output could be increased by 6.08% in average when using the same amount of input. These findings indicate the potential impact of WST on TFP gain. These findings provide helpful information for policy makers to expand the use of these technologies for a better use of irrigation water.