yes / Small scale farmers in Ethiopia are already operating on their land frontier and the scope for
an increase in production and rural income should come, among others, through
improvement in technical and allocative efficiency. Although the stake of efficiency
improvement is substantial, a number of empirical studies undertaken to identify the
determinants of efficiency however are few. Moreover, although road infrastructure is among
key public goods that significantly influences the farm level economic efficiency, empirical
studies that have considered its role in farm efficiency analysis is scarce. This research
investigated the link between the quality of rural road and farm level allocative and technical
efficiency as well as the impact of inefficiency on farm income. The result showed that
households that have all weather road access are 16% technically and two times allocatively
more efficient. Both allocative and technical inefficiencies reduce income; the adverse impact
of technical inefficiency on income however is stronger. Although household specific factors
have contributed to the observed inefficiencyin most cases it is exogenously driven, namely, it
is a rational response to market imperfection and risks. Interventions that reduce market and
production risks will increase crop output and farm income.
| Identifer | oai:union.ndltd.org:BRADFORD/oai:bradscholars.brad.ac.uk:10454/7339 |
| Date | 06 1900 |
| Creators | Wondemu, Kifle Asfaw |
| Source Sets | Bradford Scholars |
| Language | English |
| Detected Language | English |
| Type | Working Paper, published version paper |
| Rights | © 2015 University of Bradford. This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License. (http://creativecommons.org/licenses/by-nc-nd/4.0/). |
| Relation | http://www.bradford.ac.uk/ssis/bcid/developmentworkingpaperseries/ |
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