Analysis of Levels and Determinants of Technical Efficiency of <i>Tef </i>Producers in Walmara District, Ethiopia

Addisu Getahun; Gadisa Muleta

doi:doi:10.11648/j.ajtab.20220803.12

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Analysis of Levels and Determinants of Technical Efficiency of Tef Producers in Walmara District, Ethiopia

Addisu Getahun, Gadisa Muleta

Published in American Journal of Theoretical and Applied Business (Volume 8, Issue 3)

Received: 19 July 2022 Accepted: 5 August 2022 Published: 15 August 2022

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Abstract

Agriculture is the backbone of the Ethiopian economy on which 80% of Ethiopians base their livelihoods. Technical efficiency is the level to which the maximum possible output is achieved from a given combination of agricultural production inputs. This study aimed to analyze the level of technical efficiency and identify sources of inefficiency among tef cultivating farmers in Walmara district, Ethiopia. The study was conducted based on primary data collected from 261 sample households. For the analysis of collected data, both descriptive statistics and econometric models were used. A Cobb-Douglas stochastic frontier production model was used to estimate the technical efficiency score and identify the determinants of efficiency levels. The MLE of the stochastic frontier production model indicated that tef output was statistically significantly and positively affected by three production inputs including oxen, fertilizers, and herbicides. The mean technical efficiency of sampled households in the district was 83.3% which indicates the respondents have the potential to raise tef output by about 16.7% by using available production inputs on hand efficiently. The estimated results of the inefficiency model presented that the sex of household heads, educational level, and livestock owned affect the technical inefficiency of tef producers negatively and significantly. The model result specifies that being a male household head, attending formal education and the number of livestock make tef producers technically efficient to produce more. Hence, the agricultural sector policies and strategies that improve the skill of farmers and the provision of agricultural production inputs timely and in adequate quantity make tef producer farmers more productive and efficient.

Published in	American Journal of Theoretical and Applied Business (Volume 8, Issue 3)
DOI	10.11648/j.ajtab.20220803.12
Page(s)	43-49
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Tef, Technical Efficiency, Stochastic Frontier Production, Walmara

References

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[8]	Central Statistical Agency (CSA). 2021. Population Projection at Wereda level as of July 2021 Available at: https://www.statsethiopia.gov.et/wpcontent/uploads/2020/08 /Population-of-Weredas- as-of-July 2021.pdf.
[9]	Muleta G., 2020. Impact of Small-Scale Irrigation on Household Food Security: The Case of Walmara District, Finfinnee Surrounding Oromia Special Zone, Ethiopia (Msc. Thesis, Haramaya University).
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[12]	Battese, G., and Coelli, T. 1988. Prediction of firm-level technical efficiencies with a generalize frontier production function and panel data. Journal of Econometrics 38 (1988) 387-399, North-Holland.
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[14]	Minilik Tsega. 2019. Analysis of Levels and Determinants of Technical Efficiency of Wheat Producing Farmers: The Case of East Gojame Zone, Amhara Region, Ethiopia. International Journal of Development Research, 09 (11): 31400-31404.
[15]	Hika Wana and Lemmessa Dhugasa. 2019. Analysis of Technical Efficiency of Wheat Production in Horo District of Horo guduru Wollega Zone, Oromia region, Ethiopia. Journal of Natural Sciences Research, 9 (13): 32-46.
[16]	Moges Dessale, Bosena Tegegne, and Hassen Beshir. 2018. Technical Efficiency in Teff (Eragrostisteff) Production: The Case of Smallholder Farmers in Jamma District, South Wollo Zone, Ethiopia. Journal of Agricultural Economics and Rural Development, 4 (2): 513-519.
[17]	Daniel Hailu. 2020. Determinants of Technical Efficiency in Wheat Production in Ethiopia. International Journal of Agricultural Economics, 5 (5): 218-224.
[18]	Solomon Bizuayehu. 2014. Efficiency of Agricultural Production Technical Efficiency of Major crops In Ethiopia: Stochastic Frontier Model. Master thesis for the Master of Philosophy in Environmental and Development Economics Department of Economics Universities I, OSLO.

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Addisu Getahun, Gadisa Muleta. (2022). Analysis of Levels and Determinants of Technical Efficiency of Tef Producers in Walmara District, Ethiopia. American Journal of Theoretical and Applied Business, 8(3), 43-49. https://doi.org/10.11648/j.ajtab.20220803.12

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Addisu Getahun; Gadisa Muleta. Analysis of Levels and Determinants of Technical Efficiency of Tef Producers in Walmara District, Ethiopia. Am. J. Theor. Appl. Bus. 2022, 8(3), 43-49. doi: 10.11648/j.ajtab.20220803.12

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AMA Style

Addisu Getahun, Gadisa Muleta. Analysis of Levels and Determinants of Technical Efficiency of Tef Producers in Walmara District, Ethiopia. Am J Theor Appl Bus. 2022;8(3):43-49. doi: 10.11648/j.ajtab.20220803.12

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@article{10.11648/j.ajtab.20220803.12,
  author = {Addisu Getahun and Gadisa Muleta},
  title = {Analysis of Levels and Determinants of Technical Efficiency of Tef Producers in Walmara District, Ethiopia},
  journal = {American Journal of Theoretical and Applied Business},
  volume = {8},
  number = {3},
  pages = {43-49},
  doi = {10.11648/j.ajtab.20220803.12},
  url = {https://doi.org/10.11648/j.ajtab.20220803.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtab.20220803.12},
  abstract = {Agriculture is the backbone of the Ethiopian economy on which 80% of Ethiopians base their livelihoods. Technical efficiency is the level to which the maximum possible output is achieved from a given combination of agricultural production inputs. This study aimed to analyze the level of technical efficiency and identify sources of inefficiency among tef cultivating farmers in Walmara district, Ethiopia. The study was conducted based on primary data collected from 261 sample households. For the analysis of collected data, both descriptive statistics and econometric models were used. A Cobb-Douglas stochastic frontier production model was used to estimate the technical efficiency score and identify the determinants of efficiency levels. The MLE of the stochastic frontier production model indicated that tef output was statistically significantly and positively affected by three production inputs including oxen, fertilizers, and herbicides. The mean technical efficiency of sampled households in the district was 83.3% which indicates the respondents have the potential to raise tef output by about 16.7% by using available production inputs on hand efficiently. The estimated results of the inefficiency model presented that the sex of household heads, educational level, and livestock owned affect the technical inefficiency of tef producers negatively and significantly. The model result specifies that being a male household head, attending formal education and the number of livestock make tef producers technically efficient to produce more. Hence, the agricultural sector policies and strategies that improve the skill of farmers and the provision of agricultural production inputs timely and in adequate quantity make tef producer farmers more productive and efficient.},
 year = {2022}
}

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TY  - JOUR
T1  - Analysis of Levels and Determinants of Technical Efficiency of Tef Producers in Walmara District, Ethiopia
AU  - Addisu Getahun
AU  - Gadisa Muleta
Y1  - 2022/08/15
PY  - 2022
N1  - https://doi.org/10.11648/j.ajtab.20220803.12
DO  - 10.11648/j.ajtab.20220803.12
T2  - American Journal of Theoretical and Applied Business
JF  - American Journal of Theoretical and Applied Business
JO  - American Journal of Theoretical and Applied Business
SP  - 43
EP  - 49
PB  - Science Publishing Group
SN  - 2469-7842
UR  - https://doi.org/10.11648/j.ajtab.20220803.12
AB  - Agriculture is the backbone of the Ethiopian economy on which 80% of Ethiopians base their livelihoods. Technical efficiency is the level to which the maximum possible output is achieved from a given combination of agricultural production inputs. This study aimed to analyze the level of technical efficiency and identify sources of inefficiency among tef cultivating farmers in Walmara district, Ethiopia. The study was conducted based on primary data collected from 261 sample households. For the analysis of collected data, both descriptive statistics and econometric models were used. A Cobb-Douglas stochastic frontier production model was used to estimate the technical efficiency score and identify the determinants of efficiency levels. The MLE of the stochastic frontier production model indicated that tef output was statistically significantly and positively affected by three production inputs including oxen, fertilizers, and herbicides. The mean technical efficiency of sampled households in the district was 83.3% which indicates the respondents have the potential to raise tef output by about 16.7% by using available production inputs on hand efficiently. The estimated results of the inefficiency model presented that the sex of household heads, educational level, and livestock owned affect the technical inefficiency of tef producers negatively and significantly. The model result specifies that being a male household head, attending formal education and the number of livestock make tef producers technically efficient to produce more. Hence, the agricultural sector policies and strategies that improve the skill of farmers and the provision of agricultural production inputs timely and in adequate quantity make tef producer farmers more productive and efficient.
VL  - 8
IS  - 3
ER  -

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Author Information

Addisu Getahun

Ethiopian Institute of Agricultural Research (EIAR), Holeta Agricultural Research Center, Holeta, Ethiopia
Gadisa Muleta

Ethiopian Institute of Agricultural Research (EIAR), National Agricultural Biotechnology Research Center (NABRC), Holeta, Ethiopia

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APA Style

Addisu Getahun, Gadisa Muleta. (2022). Analysis of Levels and Determinants of Technical Efficiency of Tef Producers in Walmara District, Ethiopia. American Journal of Theoretical and Applied Business, 8(3), 43-49. https://doi.org/10.11648/j.ajtab.20220803.12

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ACS Style

Addisu Getahun; Gadisa Muleta. Analysis of Levels and Determinants of Technical Efficiency of Tef Producers in Walmara District, Ethiopia. Am. J. Theor. Appl. Bus. 2022, 8(3), 43-49. doi: 10.11648/j.ajtab.20220803.12

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AMA Style

Addisu Getahun, Gadisa Muleta. Analysis of Levels and Determinants of Technical Efficiency of Tef Producers in Walmara District, Ethiopia. Am J Theor Appl Bus. 2022;8(3):43-49. doi: 10.11648/j.ajtab.20220803.12

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@article{10.11648/j.ajtab.20220803.12,
  author = {Addisu Getahun and Gadisa Muleta},
  title = {Analysis of Levels and Determinants of Technical Efficiency of Tef Producers in Walmara District, Ethiopia},
  journal = {American Journal of Theoretical and Applied Business},
  volume = {8},
  number = {3},
  pages = {43-49},
  doi = {10.11648/j.ajtab.20220803.12},
  url = {https://doi.org/10.11648/j.ajtab.20220803.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtab.20220803.12},
  abstract = {Agriculture is the backbone of the Ethiopian economy on which 80% of Ethiopians base their livelihoods. Technical efficiency is the level to which the maximum possible output is achieved from a given combination of agricultural production inputs. This study aimed to analyze the level of technical efficiency and identify sources of inefficiency among tef cultivating farmers in Walmara district, Ethiopia. The study was conducted based on primary data collected from 261 sample households. For the analysis of collected data, both descriptive statistics and econometric models were used. A Cobb-Douglas stochastic frontier production model was used to estimate the technical efficiency score and identify the determinants of efficiency levels. The MLE of the stochastic frontier production model indicated that tef output was statistically significantly and positively affected by three production inputs including oxen, fertilizers, and herbicides. The mean technical efficiency of sampled households in the district was 83.3% which indicates the respondents have the potential to raise tef output by about 16.7% by using available production inputs on hand efficiently. The estimated results of the inefficiency model presented that the sex of household heads, educational level, and livestock owned affect the technical inefficiency of tef producers negatively and significantly. The model result specifies that being a male household head, attending formal education and the number of livestock make tef producers technically efficient to produce more. Hence, the agricultural sector policies and strategies that improve the skill of farmers and the provision of agricultural production inputs timely and in adequate quantity make tef producer farmers more productive and efficient.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Analysis of Levels and Determinants of Technical Efficiency of Tef Producers in Walmara District, Ethiopia
AU  - Addisu Getahun
AU  - Gadisa Muleta
Y1  - 2022/08/15
PY  - 2022
N1  - https://doi.org/10.11648/j.ajtab.20220803.12
DO  - 10.11648/j.ajtab.20220803.12
T2  - American Journal of Theoretical and Applied Business
JF  - American Journal of Theoretical and Applied Business
JO  - American Journal of Theoretical and Applied Business
SP  - 43
EP  - 49
PB  - Science Publishing Group
SN  - 2469-7842
UR  - https://doi.org/10.11648/j.ajtab.20220803.12
AB  - Agriculture is the backbone of the Ethiopian economy on which 80% of Ethiopians base their livelihoods. Technical efficiency is the level to which the maximum possible output is achieved from a given combination of agricultural production inputs. This study aimed to analyze the level of technical efficiency and identify sources of inefficiency among tef cultivating farmers in Walmara district, Ethiopia. The study was conducted based on primary data collected from 261 sample households. For the analysis of collected data, both descriptive statistics and econometric models were used. A Cobb-Douglas stochastic frontier production model was used to estimate the technical efficiency score and identify the determinants of efficiency levels. The MLE of the stochastic frontier production model indicated that tef output was statistically significantly and positively affected by three production inputs including oxen, fertilizers, and herbicides. The mean technical efficiency of sampled households in the district was 83.3% which indicates the respondents have the potential to raise tef output by about 16.7% by using available production inputs on hand efficiently. The estimated results of the inefficiency model presented that the sex of household heads, educational level, and livestock owned affect the technical inefficiency of tef producers negatively and significantly. The model result specifies that being a male household head, attending formal education and the number of livestock make tef producers technically efficient to produce more. Hence, the agricultural sector policies and strategies that improve the skill of farmers and the provision of agricultural production inputs timely and in adequate quantity make tef producer farmers more productive and efficient.
VL  - 8
IS  - 3
ER  -

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