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Economic Efficiency of Mixed Crop-Livestock Production System in the North Eastern Highlands of Ethiopia: the Stochastic Frontier Approach

Abstract: 

The general objective of the study was to estimate the economic efficiency of the mixed crop-livestock farmers in two districts of north eastern Ethiopia. Cross-sectional data were used to analyze the economic efficiency of mixed crop and livestock production system and identify its determinants factors. The study used data obtained from 252 farmers who were selected using probability proportional to sample size sampling technique. The parametric method stochastic frontier approach was employed to measure economic efficiency. The parametric methods of efficiency measurement indicated that most farmers in the study area were not efficient suggesting that efficiency improvement is one of the possible avenues for increasing agricultural production with available resource and technology. The mean Technical Efficiency (TE), Allocative Efficiency (AE) and Economic Efficiency (EE) of the household calculated from parametric approach of stochastic frontier analysis were 62%, 51% and 29%, respectively. The production efficiency of mixed crop-livestock farming system was determined by farm size, livestock ownership, labour availability, off/non-farm income participation, total household asset, total household consumption expenditure and improved technology adoption. This study found that improved agricultural technology adoption significantly improved production efficiency of households. Such actions may, in turn, alleviate the current problem of food insecurity and lead in the long run to economic development in the country..

Corporate Author: 
Demirew Getachew; Getenet Alemu; Worku Gebeyehu (Editors) and Ethiopian Economic Association
Publisher: 
Ethiopian Economic Association (EEA)
ISBN/ISSN: 
978-99944-54-32-7
Primary Descriptors: 

Economic efficiency,  technology

Secondary Descriptor: 

parametric frontier, technical efficiency

Geographic Descriptors: 
Ethiopia, north eastern
Cataloge Date: 
10/11/2013
Broad Subject heading: 
crop-livestock
Call Number: 
330.963 PRO 2013
Serial Key Title: 
Proceeding of the Tenth International Conference on the Ethiopian EconomyEconomy
Publication catagory: 
Content type: 
Volume: 
II
Publication date: 
2013-06-03 00:00:00
Conference Place: 
EEA Multi-Purpose Building Conference Hall, Addis Ababa
Place of publication: 
Addis Ababa, Ethiopia
Type of material: 
Book
Current frequency: 
Annually
Conference date: 
July 19 - 21, 2012