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Production Efficiency and Agricultural Technologies in the Ethiopian Agriculture

By Yohannes Mariam and Garth Coffin


Stochastic frontier production function analysis was performed to examine relative crop and milk production efficiency among peasants in Ada and Selale districts of the Central highlands of Ethiopia. The results indicate that Ada farmers exhibit relatively higher efficiency scores in cereal production compared to Selale producers. Farmers who adopted cross-bred cows attained higher efficiency scores than farmers who did not adopted. Production efficiency scores are higher in enterprises that enjoys experience and location specific comparative advantages. The magnitude of the impacts of knowledge-related variables (i.e., production knowledge and schooling) on production efficiency are higher relative to other variables. Adoption of one or two innovations show a consistently large, positive and significant effect on all measures of production efficiency in the Selale region. Higher production efficiency is attained in Ada region if producers adopt two or more technologies. Development strategies should examine the mixes of production technologies that may contribute to increases in agricultural production compared to the conventional package approach.

Topics: Q13 - Agricultural Markets and Marketing; Cooperatives; Agribusiness, O12 - Microeconomic Analyses of Economic Development, O13 - Agriculture; Natural Resources; Energy; Environment; Other Primary Products, Q15 - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment, Q16 - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services, O17 - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements, O19 - International Linkages to Development; Role of International Organizations, Q18 - Agricultural Policy; Food Policy, Z1 - Cultural Economics; Economic Sociology; Economic Anthropology, O38 - Government Policy, O33 - Technological Change: Choices and Consequences; Diffusion Processes, Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets, O31 - Innovation and Invention: Processes and Incentives, O15 - Human Resources; Human Development; Income Distribution; Migration
Year: 1993
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