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Aggregate agricultural supply response in Ethiopia: a farm-level analysis

Author

Listed:
  • Suleiman Abrar

    (Department of Economics, University of Sheffield, Sheffield, UK)

  • Oliver Morrissey

    (School of Economics, The University of Nottingham, Nottingham, UK)

  • Tony Rayner

    (School of Economics, The University of Nottingham, Nottingham, UK)

Abstract

This study examines the responsiveness of peasant farmers in Ethiopia to price and non-price factors. Quadratic production and restricted profit functions are estimated using farm-level survey data from Ethiopia in 1994. The results indicate that farmers respond only modestly to price incentives. The own-price output supply elasticity is very low and output supply is not responsive to fertilizer prices or the wage rate. Non-price factors are far more important in affecting production and resource use than price incentives. The results are robust to whether the primal or dual approach is used to estimate elasticities. The results underscore the need to strengthen market incentives through effective policies that will improve farmers' access to fertilizer, land and credit, public investment in roads and irrigation. Copyright © 2004 John Wiley & Sons, Ltd.

Suggested Citation

  • Suleiman Abrar & Oliver Morrissey & Tony Rayner, 2004. "Aggregate agricultural supply response in Ethiopia: a farm-level analysis," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(4), pages 605-620.
  • Handle: RePEc:wly:jintdv:v:16:y:2004:i:4:p:605-620
    DOI: 10.1002/jid.1110
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    References listed on IDEAS

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    2. Savadogo, Kimseyinga & Reardon, Thomas & Pietola, Kyosti, 1995. "Mechanization and Agricultural Supply Response in the Sahel: A Farm-Level Profit Function Analysis," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 4(3), pages 336-377, December.
    3. Umar Farooq & Trevor Young & Noel Russell & Muhammad Iqbal, 2001. "The supply response of basmati rice growers in Punjab, Pakistan: price and non-price determinants," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(2), pages 227-237.
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    6. J.C. Flinn & Kaliappa P. Kalirajan & Linda L. Castillo, 1982. "Supply Responsiveness Of Rice Farmers In Laguna, Philippines," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 26(1), pages 39-48, April.
    7. Dercon, Stefan & Lulseged, Ayalew, 1994. "Coffee prices and Smuggling in Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 3(2).
    8. Appelbaum, Elie, 1978. "Testing neoclassical production theory," Journal of Econometrics, Elsevier, vol. 7(1), pages 87-102, February.
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    10. Andre Croppenstedt & Mulat Demeke, 1997. "An empirical study of cereal crop production and technical efficiency of private farmers in Ethiopia: a mixed fixed-random coefficients approach," Applied Economics, Taylor & Francis Journals, vol. 29(9), pages 1217-1226.
    11. John C. Quiggin & Anh Bui‐Lan, 1984. "The Use Of Cross‐Sectional Estimates Of Profit Functions For Tests Of Relative Efficiency: A Critical Review," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 28(1), pages 44-55, April.
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    Cited by:

    1. Daniela Campus & Gianna Giannelli, 2016. "Is the Allocation of Time Gender Sensitive to Food Price Changes? An Investigation of Hours of Work in Uganda," Working Papers - Economics wp2016_16.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    2. Daniela Campus & Gianna Claudia Giannelli, 2017. "Is the allocation of time gender sensitive to food price changes? an investigation of hours of work in Uganda," CHILD Working Papers Series 53 JEL Classification: J1, Centre for Household, Income, Labour and Demographic Economics (CHILD) - CCA.
    3. Abrar Suleiman, 2004. "Smallholder Supply Response and Gender in Ethiopia: A Profit Function Analysis," Working Papers 2004007, The University of Sheffield, Department of Economics, revised Aug 2004.
    4. Schmidt, Emily & Chinowsky, Paul & Robinson, Sherman & Strzepek, Kenneth M., 2014. "Determinants and impact of sustainable land and watershed management investments: A systems evaluation in the Blue Nile Basin, Ethiopia:," ESSP working papers 62, International Food Policy Research Institute (IFPRI).
    5. repec:eee:jfpoli:v:69:y:2017:i:c:p:97-109 is not listed on IDEAS
    6. Diao, Xinshen & Pratt, Alejandro Nin, 2007. "Growth options and poverty reduction in Ethiopia - An economy-wide model analysis," Food Policy, Elsevier, vol. 32(2), pages 205-228, April.
    7. Bumb, Balu L. & Johnson, Michael E. & Fuentes, Porfirio A., 2011. "Policy options for improving regional fertilizer markets in West Africa:," IFPRI discussion papers 1084, International Food Policy Research Institute (IFPRI).
    8. Diao, Xinshen & Pratt, Alejandro Nin & Ghautam, Madhur & Keough, James & Chamberlin, Jordan & You, Liangszi & Puetz, Detlev & Resnick, Danielle & Yu, Bingxin, 2005. "Growth options and poverty reduction in Ethiopia," DSGD discussion papers 20, International Food Policy Research Institute (IFPRI).

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