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Technology adoption and farmer efficiency in multiple crops production in eastern Ethiopia: A comparison of parametric and non-parametric distance functions

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Author Info

  • Alene, Arega D.
  • Zeller, Manfred

Abstract

This study compares the empirical performances of the parametric distance functions(PDF) and data envelopment analysis (DEA) with applications to adopters of improved cereal production technology in eastern Ethiopia. The results from both approaches revealed substantial technical inefficiencies of production among the sample farmers. Technical efficiency estimates obtained from the two approaches are positively and significantly correlated. However, the DEA approach is shown to be very sensitive to outliers as well as to the choice of orientation. The PDF results are relatively more robust. The results from the preferred PDF approach revealed that adopters of improved technology have average technical efficiencies of 79%, implying that they could potentially raise their food crop production by an average 21% through full exploitation of the potentials of improved varieties and mineral fertilizer. The results confirm that food production even under improved technology involves substantial inefficiency. The paper concludes with a discussion of potential underlying factors influencing farmer efficiency under improved technology, such as poor extension, education, credit, and input supply systems.

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File URL: http://purl.umn.edu/44089
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Bibliographic Info

Article provided by Greek Association of Agricultural Economists in its journal Agricultural Economics Review.

Volume (Year): 06 (2005)
Issue (Month): 1 (January)
Pages:

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Handle: RePEc:ags:aergaa:44089

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Related research

Keywords: Multiple outputs; Distance functions; DEA; Technical efficiency; Ethiopia; Farm Management; Research and Development/Tech Change/Emerging Technologies;

References

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  1. Hailu, Atakelty & Veeman, Terrence S., 2000. "Environmentally Sensitive Productivity Analysis of the Canadian Pulp and Paper Industry, 1959-1994: An Input Distance Function Approach," Journal of Environmental Economics and Management, Elsevier, vol. 40(3), pages 251-274, November.
  2. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
  3. Abdul Wadud & Ben White, 2000. "Farm household efficiency in Bangladesh: a comparison of stochastic frontier and DEA methods," Applied Economics, Taylor & Francis Journals, vol. 32(13), pages 1665-1673.
  4. Coelli, Tim J., 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(03), December.
  5. Drake, Leigh & Weyman-Jones, Thomas G, 1996. "Productive and Allocative Inefficiencies in U.K. Building Societies: A Comparison of Non-parametric and Stochastic Frontier Techniques," The Manchester School of Economic & Social Studies, University of Manchester, vol. 64(1), pages 22-37, March.
  6. Kalaitzandonakes, Nicholas G. & Dunn, Elizabeth G., 1995. "Technical Efficiency, Managerial Ability And Farmer Education In Guatemalan Corn Production: A Latent Variable Analysis," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 24(1), April.
  7. M. Ali & M. A. Chaudhry, 1990. "Inter-Regional Farm Efficiency In Pakistan'S Punjab: A Frontier Production Function Study," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(1), pages 62-74.
  8. Ferrier, Gary D. & Lovell, C. A. Knox, 1990. "Measuring cost efficiency in banking : Econometric and linear programming evidence," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 229-245.
  9. Coelli, Tim & Perelman, Sergio, 1999. "A comparison of parametric and non-parametric distance functions: With application to European railways," European Journal of Operational Research, Elsevier, vol. 117(2), pages 326-339, September.
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Cited by:
  1. Aye, Goodness C. & Mungatana, Eric D., 2010. "Technological Innovation and Efficiency in the Nigerian Maize Sector: Parametric Stochastic and Non-parametic Distance Function Approaches," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 95965, African Association of Agricultural Economists (AAAE) & Agricultural Economics Association of South Africa (AEASA).
  2. Speelman, Stijn & D'Haese, Marijke & Buysse, Jeroen & D'Haese, Luc, 2008. "A measure for the efficiency of water use and its determinants, a case study of small-scale irrigation schemes in North-West Province, South Africa," Agricultural Systems, Elsevier, vol. 98(1), pages 31-39, July.
  3. Watto, Muhammad, 2013. "Measuring Groundwater Irrigation Efficiency in Pakistan: A DEA Approach Using the Sub-vector and Slack-based Models," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152204, Australian Agricultural and Resource Economics Society.
  4. Watto, Muhammad Arif & Mugera, Amin William, 2013. "Measuring Groundwater Irrigation Efficiency in Pakistan: A DEA Approach Using the Sub-vector and Slack-based Models," Working Papers 144943, University of Western Australia, School of Agricultural and Resource Economics.
  5. Frija, Aymen & Chebil, Ali & Speelman, Stijn & Buysse, Jeroen & Van Huylenbroeck, Guido, 2009. "Water use and technical efficiencies in horticultural greenhouses in Tunisia," Agricultural Water Management, Elsevier, vol. 96(11), pages 1509-1516, November.
  6. Speelman, Stijn & D'Haese, Marijke F.C. & Buysse, Jeroen & D'Haese, Luc, 2007. "Technical efficiency of water use and its determinants, study at efficiencies in small-scale irrigation schemes in North-West Province, South Africa," 106th Seminar, October 25-27, 2007, Montpellier, France 7904, European Association of Agricultural Economists.
  7. Gelaw, Fekadu, 2013. "Inefficiency and Incapability Gaps as Causes of Poverty: A Poverty Line-Augmented Efficiency Analysis Using Stochastic Distance Function," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 8(2), August.

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