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Production Efficiency of Smallholders' Vegetable-dominated Mixed Farming System in Eastern Ethiopia: A Non-Parametric Approach

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  • Jema Haji

Abstract

This study estimates technical, allocative and economic efficiencies and identifies their determinants in smallholders' vegetable-dominated mixed farming system of eastern Ethiopia. Technical, allocative and economic efficiencies were estimated by a non-parametric data envelopment analysis method. The mean technical, allocative and economic efficiencies were found to be 91, 60 and 56%, respectively. This indicates the existence of substantial allocative and economic inefficiencies of production in the study areas. An econometric analyses based on Tobit model indicate that asset, off/non-farm income, farm size, extension visits and family size were the significant determinants of technical efficiency, whereas asset, crop diversification, consumption expenditures and farm size have significant impact on allocative and economic efficiencies. This study also reveals that the cost excess owing to inefficiency in the sample is on average 44%, mainly as a result of allocative inefficiency, which is attributed to low asset ownership and farm size, high consumer spending, crop diversification and barriers to the flow of labour between farm and off/non-farm activities. Copyright 2007, Oxford University Press.

Suggested Citation

  • Jema Haji, 2007. "Production Efficiency of Smallholders' Vegetable-dominated Mixed Farming System in Eastern Ethiopia: A Non-Parametric Approach," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 16(1), pages 1-27, January.
  • Handle: RePEc:oup:jafrec:v:16:y:2007:i:1:p:1-27
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    Cited by:

    1. Hailu, Getu & Weersink, Alfons & Minten, Bart J., 2015. "Rural Organizations, Agricultural Technologies and Production Efficiency of Teff in Ethiopia," 2015 Conference, August 9-14, 2015, Milan, Italy 211702, International Association of Agricultural Economists.
    2. repec:spr:jecstr:v:6:y:2017:i:1:d:10.1186_s40008-017-0093-8 is not listed on IDEAS
    3. Dong, Zefeng & Guan, Zhengfei & Grogan, Kelly A. & Skevas, Theodoros, 2015. "Energy and Environmental Efficiency of Greenhouse Growers in Michigan," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196840, Southern Agricultural Economics Association.
    4. Sanzidur Rahman & Chidiebere Daniel Chima, 2016. "Determinants of Food Crop Diversity and Profitability in Southeastern Nigeria: A Multivariate Tobit Approach," Agriculture, MDPI, Open Access Journal, pages 1-14.
    5. Hayatullah Ahmadzai, 2017. "Crop Diversification and Technical Efficiency in Afghanistan: Stochastic Frontier Analysis," Discussion Papers 2017-04, University of Nottingham, CREDIT.
    6. Abatania, Luke N. & Hailu, Atakelty & Mugera, Amin W., 2012. "Analysis of farm household technical efficiency in Northern Ghana using bootstrap DEA," 2012 Conference (56th), February 7-10, 2012, Freemantle, Australia 124211, Australian Agricultural and Resource Economics Society.
    7. Rahman, Sanzidur, 2009. "Whether crop diversification is a desired strategy for agricultural growth in Bangladesh?," Food Policy, Elsevier, pages 340-349.
    8. Rahman, Sanzidur, 2009. "Whether crop diversification is a desired strategy for agricultural growth in Bangladesh?," Food Policy, Elsevier, pages 340-349.
    9. Rahman, Sanzidur & Kazal, Mohammad Mizanul Haque, 2015. "Whether crop diversification is energy efficient: An empirical analysis from Bangladesh," Renewable and Sustainable Energy Reviews, Elsevier, pages 745-754.
    10. repec:gam:jagris:v:6:y:2016:i:2:p:14:d:67401 is not listed on IDEAS
    11. Zhihai Yang & Amin W. Mugera & Fan Zhang, 2016. "Investigating Yield Variability and Inefficiency in Rice Production: A Case Study in Central China," Sustainability, MDPI, Open Access Journal, vol. 8(8), pages 1-11, August.
    12. Emana, Bezabih & Afari-Sefa, Victor & Dinssa, Fekadu F. & Ayana, Amsalu & Balemi, Tesfaye & Temesgen, Milkessa, 0. "Characterization and Assessment of Vegetable Production and Marketing Systems in the Humid Tropics of Ethiopia," Quarterly Journal of International Agriculture, Humboldt-Universität zu Berlin, vol. 54.
    13. Asif Reza Anik & Sanzidur Rahman & Jaba Rani Sarker, 2017. "Agricultural Productivity Growth and the Role of Capital in South Asia (1980–2013)," Sustainability, MDPI, Open Access Journal, vol. 9(3), pages 1-24, March.
    14. Manevska-Tasevska, Gordana, 2011. "Efficiency analysis of commercial grape-producing family farms in the Republic of Macedonia," Department of Economics publications 8496, Swedish University of Agricultural Sciences, Department of Economics.

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