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Education externalities in rural Ethiopia: evidence from average and stochastic frontier production functions

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  • Sharada Weir
  • John Knight

Abstract

Education will have externality effects in agriculture if, in the course of conducting their own private economic activities, educated farmers raise the productivity of uneducated farmers with whom they come into contact. This paper seeks to determine the potential size and source of such benefits for rural areas of Ethiopia. Average and stochastic frontier production function methodologies are employed to measure productivity and efficiency of farmers. In each case, internal and external returns to schooling are compared. We find that there are substantial and significant externality benefits of education in terms of higher average farm output and a shifting outwards of the production frontier. External benefits of schooling may be several times as high as internal benefits in this regard. However, we are unable to find any evidence of externality benefits to schooling in terms of improvements in technological efficiency in the use of a given technology. This suggests that the source of externalities to schooling is in the adoption and spread of innovations, which shift out the production frontier.

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Bibliographic Info

Paper provided by Centre for the Study of African Economies, University of Oxford in its series CSAE Working Paper Series with number 2000-04.

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Date of creation: 2000
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Handle: RePEc:csa:wpaper:2000-04

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  2. Simon Appleton & Arsène Balihuta, 1996. "Education and agricultural productivity: evidence from Uganda," CSAE Working Paper Series 1996-05, Centre for the Study of African Economies, University of Oxford.
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  8. Lockheed, Marlaine E & Jamison, Dean T & Lau, Lawrence J, 1980. "Farmer Education and Farm Efficiency: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 29(1), pages 37-76, October.
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  11. John Knight & Sharada Weir, 2000. "Adoption and Diffusion of Agricultural Innovations in Ethiopia: The Role of Education," Economics Series Working Papers WPS/2000-05, University of Oxford, Department of Economics.
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  14. Croppenstedt, Andre & Muller, Christophe, 2000. "The Impact of Farmers' Health and Nutritional Status on Their Productivity and Efficiency: Evidence from Ethiopia," Economic Development and Cultural Change, University of Chicago Press, vol. 48(3), pages 475-502, April.
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Citations

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Cited by:
  1. Wobst, Peter & Arndt, Channing, 2003. "HIV/AIDS and Primary School Performance in Tanzania," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25870, International Association of Agricultural Economists.
  2. John Cockburn, 2002. "Income Contributions of Child Work in Rural Ethiopia," CSAE Working Paper Series 2002-12, Centre for the Study of African Economies, University of Oxford.
  3. Sharada Weir & John Knight, 2000. "Adoption and diffusion of agricultural innovations in Ethiopia: the role of Education," CSAE Working Paper Series 2000-05, Centre for the Study of African Economies, University of Oxford.
  4. Sharada Weir, 2000. "Intergenerational transfers of human capital: evidence on two types of education externalities," CSAE Working Paper Series 2000-15, Centre for the Study of African Economies, University of Oxford.
  5. Tchale, Hardwick & Sauer, Johannes, 2008. "Soil Fertility Management And Maize Productivity In Malawi: Curvature Correct Efficiency Modeling And Simulation," 2007 Second International Conference, August 20-22, 2007, Accra, Ghana 52077, African Association of Agricultural Economists (AAAE).
  6. Christian K.M. Kingombe, 2012. "The Linkage between Outcome Differences in Cotton Production and Rural Roads Improvements - A Matching Approach," IHEID Working Papers 12-2012, Economics Section, The Graduate Institute of International Studies.
  7. Hardwick Tchale & Johannes Sauer, 2007. "The efficiency of maize farming in Malawi. A bootstrapped translog frontier," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 82, pages 33-56.
  8. Sharada Weir, 2000. "Intergenerational Transfers of Human Capital: Evidence on Two Types of Education Externalities," Economics Series Working Papers WPS/2000-15, University of Oxford, Department of Economics.
  9. Wambugu, Anthony, 2002. "Real Wages and Returns to Human Capital in Kenya Manufacturing firms," Working Papers in Economics 75, University of Gothenburg, Department of Economics.
  10. Ogundari, Kolawole, 2009. "A Meta-Analysis Of Technical Efficiency In Nigerian Agriculture," 2009 Conference, August 16-22, 2009, Beijing, China 50327, International Association of Agricultural Economists.

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