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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Production Efficiency of Smallholders' Vegetable-Dominated Mixed Farming System in Eastern Ethiopia: A Non-Parametric Approach
Author:Haji, Jema
Periodical:Journal of African Economies
Geographic term:Ethiopia
agricultural productivity
farm management
small farms
Agriculture, Natural Resources and the Environment
Development and Technology
Economics and Trade
Abstract:This study estimates technical, allocative and economic efficiencies and identifies their determinants in smallholders' vegetable-dominated mixed farming systems in Haromaya and Kombolcha districts in Oromia region, eastern Ethiopia. Technical, allocative and economic efficiencies are estimated by a nonparametric data envelopment analysis method. The mean technical, allocative and economic efficiencies are found to be 91, 60 and 56 percent, respectively. This indicates the existence of substantial allocative and economic inefficiencies of production in the study areas. An econometric analysis based on a Tobit model indicates that asset, off/non-farm income, farm size, extension visits and family size are the significant determinants of technical efficiency, whereas asset, crop diversification, consumption expenditures and farm size have a significant impact on allocative and economic efficiencies. The study also reveals that the cost excess owing to inefficiency in the sample is on average 44 percent, mainly as a result of allocative inefficiency, which is attributed to low asset ownership and farm size, high consumer spending, crop diversification and barriers to the flow of labour between farm and off/non-farm activities. Bibliogr., sum. [Journal abstract]