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Effects of climatic conditions and agro-ecological settings on the productive efficiencies of small-holder farmers in Ethopia

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  • Temesgen Tadesse Deressa

Abstract

This study argues that the adaptation measures farmers take to reduce the negative impacts of climate change do affect farmers’ efficiency of production. To support this argument, two steps were followed to understand how climatic factors especially long term average seasonal rainfall and temperature; and agro-ecological settings affect production efficiency in Ethiopian agriculture. In the first step, the stochastic frontier approach was employed to analyze the farm level technical efficiency. In the second step, the tobit regression model was adopted to analyze how climatic and agro-ecological settings affect efficiency scores derived from the first step. Results from the first step indicated that the surveyed farmers have an average technical efficiency of 0.50; with significant output elasticits of labor, draft power and tractor. Results from the tobit regression model showed that soil types, run-off, seasonal climatic conditions and agro-ecological settings affect technical efficiency in Ethiopian agriculture.

Suggested Citation

  • Temesgen Tadesse Deressa, 2011. "Effects of climatic conditions and agro-ecological settings on the productive efficiencies of small-holder farmers in Ethopia," Working Papers 223, Economic Research Southern Africa.
  • Handle: RePEc:rza:wpaper:223
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    File URL: http://www.econrsa.org/node/246
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    References listed on IDEAS

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    5. Orefi Abu & Johann Kirsten, 2009. "Profit efficiency of small- and medium-scale maize milling enterprises in South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 26(3), pages 353-368.
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    13. Temesgen Tadesse Deressa & Rashid M. Hassan, 2009. "Economic Impact of Climate Change on Crop Production in Ethiopia: Evidence from Cross-section Measures," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 18(4), pages 529-554, August.
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    More about this item

    Keywords

    Technical efficiency; seasonal climate; agro-ecology; Ethiopia;

    JEL classification:

    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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