"Technical efficiency of farmers in Ethiopia: A stochastic production f" by Askal Ayalew Ali

Graduate Program

Economics

Degree Name

Master of Arts (MA)

Semester of Degree Completion

2010

Thesis Director

Hui Li

Thesis Committee Member

Mukti Upadhay

Thesis Committee Member

Linda Ghent

Abstract

This study is to investigate the farmer's efficiency in Ethiopia. The stochastic production function is applied to estimate the technical efficiency of farmers. Using 2006 survey data conducted by the World Bank in collaboration with Ethiopian Economic Policy Research Institute, shows that farmers produce under the production frontier, and the average technical efficiency of the farmers is 62.4 percent. Variation in efficiency comes from many factors, however, this study focuses on extension program participation, education, and land ownership. Lack of extension program and education cause inefficiencies of 59.8 percent and 60.21 percent respectively. Land ownership is found to have mixed results. Also, the analysis supports applying modern inputs to increase the productivity of farmers.

Included in

Economics Commons

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