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Economic Efficiency of Smallholder Farmers in Maize Production in West Harerghe Zone, Oromia National Regional State, Ethiopia

Received: 2 August 2022     Accepted: 7 September 2022     Published: 11 November 2022
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Abstract

The aim of the study was to measure the levels of technical, allocative and economic efficiencies and identify factors affecting efficiency levels of maize production in west Hararghe zone. The study was based on cross-sectional data collected from 160 randomly selected respondents. Stochastic frontier production model was used to estimate technical, allocative and economic efficiency levels, whereas Tobit model was used to identify factors affecting efficiency levels. Accordingly, the mean technical, allocative and economic efficiencies of sample households were 77%, 64% and 51%, respectively. The results indicated that there was substantial amount of efficiency variation in maize production in the study area. Land, seed and NPS were the variables that positively affected the production of maize. Results of the Tobit model revealed that education, number of livestock owned and social participation significantly affected technical efficiency. On the other hand, household size, proximity to maize farm, number of maize plot, landholding size, credit and social participation significantly affected allocative efficiency. The result of the study also showed that, proximity, landholding size, livestock and credit affected economic efficiency significantly. Results also indicate that there is a room to increase the efficiency in maize production of the study area. Therefore, government authorities, policy makers and other concerned bodies should take into consideration the above mentioned socioeconomic and institutional factors to improve the productivity of maize in the study area.

Published in Journal of World Economic Research (Volume 11, Issue 2)
DOI 10.11648/j.jwer.20221102.14
Page(s) 98-104
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), 2022. Published by Science Publishing Group

Keywords

Maize Production, Efficiency, Stochastic Frontier, Tobit

References
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Cite This Article
  • APA Style

    Gosa Alemu, Birhanu Angasu, Nimona Sime. (2022). Economic Efficiency of Smallholder Farmers in Maize Production in West Harerghe Zone, Oromia National Regional State, Ethiopia. Journal of World Economic Research, 11(2), 98-104. https://doi.org/10.11648/j.jwer.20221102.14

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    ACS Style

    Gosa Alemu; Birhanu Angasu; Nimona Sime. Economic Efficiency of Smallholder Farmers in Maize Production in West Harerghe Zone, Oromia National Regional State, Ethiopia. J. World Econ. Res. 2022, 11(2), 98-104. doi: 10.11648/j.jwer.20221102.14

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    AMA Style

    Gosa Alemu, Birhanu Angasu, Nimona Sime. Economic Efficiency of Smallholder Farmers in Maize Production in West Harerghe Zone, Oromia National Regional State, Ethiopia. J World Econ Res. 2022;11(2):98-104. doi: 10.11648/j.jwer.20221102.14

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  • @article{10.11648/j.jwer.20221102.14,
      author = {Gosa Alemu and Birhanu Angasu and Nimona Sime},
      title = {Economic Efficiency of Smallholder Farmers in Maize Production in West Harerghe Zone, Oromia National Regional State, Ethiopia},
      journal = {Journal of World Economic Research},
      volume = {11},
      number = {2},
      pages = {98-104},
      doi = {10.11648/j.jwer.20221102.14},
      url = {https://doi.org/10.11648/j.jwer.20221102.14},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20221102.14},
      abstract = {The aim of the study was to measure the levels of technical, allocative and economic efficiencies and identify factors affecting efficiency levels of maize production in west Hararghe zone. The study was based on cross-sectional data collected from 160 randomly selected respondents. Stochastic frontier production model was used to estimate technical, allocative and economic efficiency levels, whereas Tobit model was used to identify factors affecting efficiency levels. Accordingly, the mean technical, allocative and economic efficiencies of sample households were 77%, 64% and 51%, respectively. The results indicated that there was substantial amount of efficiency variation in maize production in the study area. Land, seed and NPS were the variables that positively affected the production of maize. Results of the Tobit model revealed that education, number of livestock owned and social participation significantly affected technical efficiency. On the other hand, household size, proximity to maize farm, number of maize plot, landholding size, credit and social participation significantly affected allocative efficiency. The result of the study also showed that, proximity, landholding size, livestock and credit affected economic efficiency significantly. Results also indicate that there is a room to increase the efficiency in maize production of the study area. Therefore, government authorities, policy makers and other concerned bodies should take into consideration the above mentioned socioeconomic and institutional factors to improve the productivity of maize in the study area.},
     year = {2022}
    }
    

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  • TY  - JOUR
    T1  - Economic Efficiency of Smallholder Farmers in Maize Production in West Harerghe Zone, Oromia National Regional State, Ethiopia
    AU  - Gosa Alemu
    AU  - Birhanu Angasu
    AU  - Nimona Sime
    Y1  - 2022/11/11
    PY  - 2022
    N1  - https://doi.org/10.11648/j.jwer.20221102.14
    DO  - 10.11648/j.jwer.20221102.14
    T2  - Journal of World Economic Research
    JF  - Journal of World Economic Research
    JO  - Journal of World Economic Research
    SP  - 98
    EP  - 104
    PB  - Science Publishing Group
    SN  - 2328-7748
    UR  - https://doi.org/10.11648/j.jwer.20221102.14
    AB  - The aim of the study was to measure the levels of technical, allocative and economic efficiencies and identify factors affecting efficiency levels of maize production in west Hararghe zone. The study was based on cross-sectional data collected from 160 randomly selected respondents. Stochastic frontier production model was used to estimate technical, allocative and economic efficiency levels, whereas Tobit model was used to identify factors affecting efficiency levels. Accordingly, the mean technical, allocative and economic efficiencies of sample households were 77%, 64% and 51%, respectively. The results indicated that there was substantial amount of efficiency variation in maize production in the study area. Land, seed and NPS were the variables that positively affected the production of maize. Results of the Tobit model revealed that education, number of livestock owned and social participation significantly affected technical efficiency. On the other hand, household size, proximity to maize farm, number of maize plot, landholding size, credit and social participation significantly affected allocative efficiency. The result of the study also showed that, proximity, landholding size, livestock and credit affected economic efficiency significantly. Results also indicate that there is a room to increase the efficiency in maize production of the study area. Therefore, government authorities, policy makers and other concerned bodies should take into consideration the above mentioned socioeconomic and institutional factors to improve the productivity of maize in the study area.
    VL  - 11
    IS  - 2
    ER  - 

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Author Information
  • Oromia Agricultural Research Institute, Mechara Agricultural Research Center, Mechara, Ethiopia

  • Oromia Agricultural Research Institute, Mechara Agricultural Research Center, Mechara, Ethiopia

  • Oromia Agricultural Research Institute, Mechara Agricultural Research Center, Mechara, Ethiopia

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