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Production Efficiency and Agricultural Technologies in the Ethiopian Agriculture

Author

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  • Mariam, Yohannes
  • Coffin, Garth

Abstract

Stochastic frontier production function analysis was performed to examine relative crop and milk production efficiency among peasants in Ada and Selale districts of the Central highlands of Ethiopia. The results indicate that Ada farmers exhibit relatively higher efficiency scores in cereal production compared to Selale producers. Farmers who adopted cross-bred cows attained higher efficiency scores than farmers who did not adopted. Production efficiency scores are higher in enterprises that enjoys experience and location specific comparative advantages. The magnitude of the impacts of knowledge-related variables (i.e., production knowledge and schooling) on production efficiency are higher relative to other variables. Adoption of one or two innovations show a consistently large, positive and significant effect on all measures of production efficiency in the Selale region. Higher production efficiency is attained in Ada region if producers adopt two or more technologies. Development strategies should examine the mixes of production technologies that may contribute to increases in agricultural production compared to the conventional package approach.

Suggested Citation

  • Mariam, Yohannes & Coffin, Garth, 1993. "Production Efficiency and Agricultural Technologies in the Ethiopian Agriculture," MPRA Paper 404, University Library of Munich, Germany, revised 12 Aug 1994.
  • Handle: RePEc:pra:mprapa:404
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    File URL: https://mpra.ub.uni-muenchen.de/404/1/MPRA_paper_404.pdf
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    References listed on IDEAS

    as
    1. Greene, William H., 1982. "Maximum likelihood estimation of stochastic frontier production models," Journal of Econometrics, Elsevier, vol. 18(2), pages 285-289, February.
    2. B. E. Bravo-Ureta & L. Rieger, 1990. "Alternative Production Frontier Methodologies And Dairy Farm Efficiency," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(2), pages 215-226.
    3. Stevenson, Rodney E., 1980. "Likelihood functions for generalized stochastic frontier estimation," Journal of Econometrics, Elsevier, vol. 13(1), pages 57-66, May.
    4. Kumbhakar, Subal C., 1987. "The specification of technical and allocative inefficiency in stochastic production and profit frontiers," Journal of Econometrics, Elsevier, vol. 34(3), pages 335-348, March.
    5. Fare, Rolf & Grosskopf, Shawna, 1983. "Measuring output efficiency," European Journal of Operational Research, Elsevier, vol. 13(2), pages 173-179, June.
    6. Lee, Lung-Fei, 1983. "A test for distributional assumptions for the stochastic frontier functions," Journal of Econometrics, Elsevier, vol. 22(3), pages 245-267, August.
    7. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Stochastic frontier production function; production efficiency; Ethiopia; comparative advantages; knowledge; adoption of technologies; agriculture;

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • Z1 - Other Special Topics - - Cultural Economics
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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