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Impact of off-farm activities on technical efficiency: evidence from maize producers of eastern Ethiopia

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  • Musa Hasen Ahmed

    (Haramaya University)

  • Kumilachew Alamerie Melesse

    (Haramaya University)

Abstract

This article analyzes the impact of participation in off-farm activities on technical efficiency of maize production in eastern Ethiopia. We combined propensity score matching with a stochastic production frontier model that corrects sample selection bias resulting from unobserved factors that potentially affect both households’ decision to participate in off-farm activities and technical efficiency scores that most previous studies do not account for. The probit model results indicate that sex of the household head, literacy of the spouse, agricultural cooperative membership, family size, and access to market information had significant effect on farmers’ participation in off-farm activities. In the meantime, it was found that farmers who participated in off-farm activities have a significant technical efficiency gain compared with their non-participant counterparts.

Suggested Citation

  • Musa Hasen Ahmed & Kumilachew Alamerie Melesse, 2018. "Impact of off-farm activities on technical efficiency: evidence from maize producers of eastern Ethiopia," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 6(1), pages 1-15, December.
    • Handle: RePEc:spr:agfoec:v:6:y:2018:i:1:d:10.1186_s40100-018-0098-0
    DOI: 10.1186/s40100-018-0098-0
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    18. Rakhshanda, Kousar & Awudu, Abdulai, 2013. "Impacts of rural non-farm employment on household welfare in Pakistan," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149890, Italian Association of Agricultural and Applied Economics (AIEAA).
    19. Babatunde, Raphael O., 2013. "On-Farm and Off-farm Works: Complement or Substitute? Evidence from Rural Nigeria," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 160437, African Association of Agricultural Economists (AAAE).
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