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Measuring The Impact Of Ethiopia'S New Extension Program On The Productive Efficiency Of Farmers

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  • Alene, Arega D.
  • Hassan, Rashid M.

Abstract

This paper employed a robust stochastic efficiency decomposition technique that accounts for scale effects to derive the technical, allocative, and overall productive efficiency of two samples of farmers, participants and non-participants in the New Extension Program (NEP), in two agro-climatic zones in eastern Ethiopia. Using data for the 2001/2002 agricultural year, we find that both groups of farmers in the two zones have considerable overall productive inefficiencies. In the wet highlands, although the participants in NEP used a superior technology and have higher technical efficiencies, their allocative efficiencies turned out to be lower than the non-participant farmers, relative to their respective technologies. However, both groups exhibit similar productive efficiencies. In the dry lands, apart from using homogeneous production technologies, the two groups do not have significantly different technical and allocative efficiencies and that they have similar productive efficiencies. Therefore, we find no empirical evidence of a positive impact of NEP on overall productive efficiency in both agro-climatic zones. An investigation of the influence of several socio-economic and institutional factors revealed that education, credit, previous participation in extension programs, off-farm income and the share of the leading cropping system have a positive impact on efficiency.

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  • Alene, Arega D. & Hassan, Rashid M., 2003. "Measuring The Impact Of Ethiopia'S New Extension Program On The Productive Efficiency Of Farmers," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25919, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae03:25919
    DOI: 10.22004/ag.econ.25919
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    Cited by:

    1. Asefa, Shumet, 2011. "Analysis of technical efficiency of crop producing smallholder farmers in Tigray,Ethiopia," MPRA Paper 40461, University Library of Munich, Germany, revised 19 Sep 2012.
    2. Velarde, Orlee & Pede, Valerien O., 2013. "Pattern of investment allocation to chemical inputs and technical efficiency: A stochastic frontier analysis of farm households in Laguna, Philippines," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152203, Australian Agricultural and Resource Economics Society.
    3. Saldias, Rodrigo & von Cramon-Taubadel, Stephan, 2012. "Access to credit and the determinants of technical inefficiency among specialized small farmers in Chile," DARE Discussion Papers 1211, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).

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