Technical efficiency of farmers in Ethiopia: A stochastic production frontier approach

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.

Date of Award	2010
Original language	American English
Awarding Institution	Eastern Illinois University
Supervisor	Hui Li (Supervisor)