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A comparative analysis of the technical efficiency of irrigated and rainfed agriculture: a case of Awash and Rift valleys of Ethiopia

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  • Kelemework, D.

Abstract

Ethiopia\u2019s economy is heavily dependent on the agricultural sector, which contributes 45% of the GDP, providing livelihood for 85% of the population and accounting for 60% of the foreign exchange earning. Ethiopia, one of the poorest countries in Sub-Saharan Africa, has been repeatedly hit by drought resulting in famine and the loss of life of thousands of its rural citizens. The country\u2019s agriculture mainly depends on rain fed peasant farming which accounts for 96% of the food produced in the country. On the other hand, it is estimated that the major river basins of the country can irrigate about 3.5 million-hectare of land and at present only about 161,010 ha or 4.6% is irrigated around the major river basins. Though the expansion and better utilization of this irrigation potential is unattested, the production efficiency of the existing irrigation systems also needs attention. This paper compares the technical efficiency of rainfed and irrigated agricultural production in Ethiopia. Using the stochastic production frontier approach, the study concludes that the existing irrigation systems are not that efficient and there is a need to make them operate near their production frontier. The production frontiers of both irrigated and rainfed agriculture is estimated along with the technical efficiency of each farmer in both groups and the two groups are compared in relation to their respective frontiers. The marginal and average productivities of the important factors of production is also calculated and compared.

Suggested Citation

  • Kelemework, D., 2008. "A comparative analysis of the technical efficiency of irrigated and rainfed agriculture: a case of Awash and Rift valleys of Ethiopia," Conference Papers h044137, International Water Management Institute.
    • Handle: RePEc:iwt:conppr:h044137
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    1. Thibbotuwawa, Manoj & Mugera, Amin & White, Ben, 2013. "Production Efficiency and Technology Gap in Irrigated and Rain-fed Rice Farming Systems in Sri Lanka: Non Parametric Approach," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152181, Australian Agricultural and Resource Economics Society.

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