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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.
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    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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    File URL: http://purl.umn.edu/25919
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    Bibliographic Info

    Paper provided by International Association of Agricultural Economists in its series 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa with number 25919.

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    Date of creation: 2003
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    Handle: RePEc:ags:iaae03:25919

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    Keywords: Teaching/Communication/Extension/Profession;

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    1. Seyoum, E. T. & Battese, G. E. & Fleming, E. M., 1998. "Technical efficiency and productivity of maize producers in eastern Ethiopia: a study of farmers within and outside the Sasakawa-Global 2000 project," Agricultural Economics, Blackwell, vol. 19(3), pages 341-348, December.
    2. Kumbhakar, Subal C., 1994. "Efficiency estimation in a profit maximising model using flexible production function," Agricultural Economics, Blackwell, vol. 10(2), pages 143-152, April.
    3. Sharma, Khem R. & Leung, PingSun & Zaleski, Halina M., 1999. "Technical, allocative and economic efficiencies in swine production in Hawaii: a comparison of parametric and nonparametric approaches," Agricultural Economics, Blackwell, vol. 20(1), pages 23-35, January.
    4. Sharma, Khem R. & Leung, PingSun & Zaleski, Halina M., 1999. "Technical, allocative and economic efficiencies in swine production in Hawaii: a comparison of parametric and nonparametric approaches," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 20(1), January.
    5. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    6. Kumbhakar, Subal C., 1994. "Efficiency estimation in a profit maximising model using flexible production function," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 10(2), 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. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 7(3-4), October.
    9. Bravo-Ureta, Boris E. & Evenson, Robert E., 1994. "Efficiency in agricultural production: the case of peasant farmers in eastern Paraguay," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 10(1), January.
    10. Bravo-Ureta, Boris E. & Evenson, Robert E., 1994. "Efficiency in agricultural production: The case of peasant farmers in eastern Paraguay," Agricultural Economics, Blackwell, vol. 10(1), pages 27-37, January.
    11. Seyoum, E.T. & Battese, G.E. & Fleming, E.M., 1998. "Technical efficiency and productivity of maize producers in eastern Ethiopia: a study of farmers within and outside the Sasakawa-Global 2000 project," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 19(3), December.
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    Cited by:
    1. 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.

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