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

  • 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)

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.

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Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

Volume (Year): 16 (2004)
Issue (Month): 4 ()
Pages: 605-620

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Handle: RePEc:wly:jintdv:v:16:y:2004:i:4:p:605-620
Contact details of provider: Web page: http://www3.interscience.wiley.com/journal/5102/home

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  1. 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 336-77, December.
  2. Hattink, Wolter & Heerink, Nico & Thijssen, Geert, 1998. "Supply Response of Cocoa in Ghana: A Farm-Level Profit Function Analysis," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 7(3), pages 424-44, October.
  3. Flinn, John C. & Kalirajan, Kaliappa P. & Castillo, Linda L., 1982. "Supply Responsiveness Of Rice Farmers In Laguna, Philippines," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 26(01), April.
  4. Quiggin, John C. & Bui-Lan, Anh, 1984. "The Use Of Cross-Sectional Estimates Of Profit Functions For Tests Of Relative Efficiency: A Critical Review," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 28(01), April.
  5. 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.
  6. 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.
  7. Lau, Lawrence J., 1976. "A characterization of the normalized restricted profit function," Journal of Economic Theory, Elsevier, vol. 12(1), pages 131-163, February.
  8. Appelbaum, Elie, 1978. "Testing neoclassical production theory," Journal of Econometrics, Elsevier, vol. 7(1), pages 87-102, February.
  9. Burgess, David F., 1975. "Duality theory and pitfalls in the specification of technologies," Journal of Econometrics, Elsevier, vol. 3(2), pages 105-121, May.
  10. Shumway, C. Richard, 1995. "Recent Duality Contributions In Production Economics," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(01), July.
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