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

Gosa Alemu; Birhanu Angasu; Nimona Sime

doi:doi:10.11648/j.jwer.20221102.14

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

Gosa Alemu, Birhanu Angasu, Nimona Sime

Published in Journal of World Economic Research (Volume 11, Issue 2)

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), 2024. Published by Science Publishing Group

Keywords

Maize Production, Efficiency, Stochastic Frontier, Tobit

References

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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

Gosa Alemu

Oromia Agricultural Research Institute, Mechara Agricultural Research Center, Mechara, Ethiopia
Birhanu Angasu

Oromia Agricultural Research Institute, Mechara Agricultural Research Center, Mechara, Ethiopia
Nimona Sime

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

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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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