Review on Economic Efficiency of Smallholders Farmers in the Production of Sesame: The Case of Ethiopia

Yadeta Bedasa

doi:doi:10.11648/j.jim.20200904.13

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Review on Economic Efficiency of Smallholders Farmers in the Production of Sesame: The Case of Ethiopia

Yadeta Bedasa

Published in Journal of Investment and Management (Volume 9, Issue 4)

Received: 16 September 2020 Accepted: 28 September 2020 Published: 31 December 2020

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Abstract

The objective of this study is to review economic efficiency of smallholder farmers in sesame production in Ethiopia. Specifically, the review examines levels of Technical, Allocative and Economic efficiencies of sesame producer; and to review factors affecting efficiency of smallholder farmers in the study area. For this study both published and unpublished sources were used. Also, the study reviewed various functional forms that were fitted to estimate Technical, Allocative and Economic efficiencies levels and model that were fitted to estimate factor affecting efficiency of smallholder farmers. The review results indicate Cob-Douglas function and Translog functional form are alternative methods for evaluating efficiencies and were used for purposes of comparison; OLS is mainly used if the inefficiency scores are not truncated or censored for a specific value; Tobit regression approach is preferred over the OLS regression in the case of censored data. The review results indicate as there is a room to increase the efficiency of sesame producers. Variables such as non-farm income and credit access, experience in sesame production, distance of sesame farm from residence, education level and extension contact had major significant impact on Technical, Allocative and Economic efficiency. In order to improve efficiency of smallholder farmers in sesame production in Ethiopia, give consideration to the above mentioned socio economic and institutional factors is needed. Focusing on efficient use of existing resources and addressing the socio-economic and institutional factors by using existing technology and given input levels are crucial and relevant policy issues are recommended. Strengthening the existing livestock production system, credit access, agricultural extension system and invest in the provision of basic education to smallholder farmers are advisable.

Published in	Journal of Investment and Management (Volume 9, Issue 4)
DOI	10.11648/j.jim.20200904.13
Page(s)	107-114
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

Efficiency, Smallholder Farmers, Sesame

References

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Yadeta Bedasa. (2020). Review on Economic Efficiency of Smallholders Farmers in the Production of Sesame: The Case of Ethiopia. Journal of Investment and Management, 9(4), 107-114. https://doi.org/10.11648/j.jim.20200904.13

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ACS Style

Yadeta Bedasa. Review on Economic Efficiency of Smallholders Farmers in the Production of Sesame: The Case of Ethiopia. J. Invest. Manag. 2020, 9(4), 107-114. doi: 10.11648/j.jim.20200904.13

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AMA Style

Yadeta Bedasa. Review on Economic Efficiency of Smallholders Farmers in the Production of Sesame: The Case of Ethiopia. J Invest Manag. 2020;9(4):107-114. doi: 10.11648/j.jim.20200904.13

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@article{10.11648/j.jim.20200904.13,
  author = {Yadeta Bedasa},
  title = {Review on Economic Efficiency of Smallholders Farmers in the Production of Sesame: The Case of Ethiopia},
  journal = {Journal of Investment and Management},
  volume = {9},
  number = {4},
  pages = {107-114},
  doi = {10.11648/j.jim.20200904.13},
  url = {https://doi.org/10.11648/j.jim.20200904.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20200904.13},
  abstract = {The objective of this study is to review economic efficiency of smallholder farmers in sesame production in Ethiopia. Specifically, the review examines levels of Technical, Allocative and Economic efficiencies of sesame producer; and to review factors affecting efficiency of smallholder farmers in the study area. For this study both published and unpublished sources were used. Also, the study reviewed various functional forms that were fitted to estimate Technical, Allocative and Economic efficiencies levels and model that were fitted to estimate factor affecting efficiency of smallholder farmers. The review results indicate Cob-Douglas function and Translog functional form are alternative methods for evaluating efficiencies and were used for purposes of comparison; OLS is mainly used if the inefficiency scores are not truncated or censored for a specific value; Tobit regression approach is preferred over the OLS regression in the case of censored data. The review results indicate as there is a room to increase the efficiency of sesame producers. Variables such as non-farm income and credit access, experience in sesame production, distance of sesame farm from residence, education level and extension contact had major significant impact on Technical, Allocative and Economic efficiency. In order to improve efficiency of smallholder farmers in sesame production in Ethiopia, give consideration to the above mentioned socio economic and institutional factors is needed. Focusing on efficient use of existing resources and addressing the socio-economic and institutional factors by using existing technology and given input levels are crucial and relevant policy issues are recommended. Strengthening the existing livestock production system, credit access, agricultural extension system and invest in the provision of basic education to smallholder farmers are advisable.},
 year = {2020}
}

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TY  - JOUR
T1  - Review on Economic Efficiency of Smallholders Farmers in the Production of Sesame: The Case of Ethiopia
AU  - Yadeta Bedasa
Y1  - 2020/12/31
PY  - 2020
N1  - https://doi.org/10.11648/j.jim.20200904.13
DO  - 10.11648/j.jim.20200904.13
T2  - Journal of Investment and Management
JF  - Journal of Investment and Management
JO  - Journal of Investment and Management
SP  - 107
EP  - 114
PB  - Science Publishing Group
SN  - 2328-7721
UR  - https://doi.org/10.11648/j.jim.20200904.13
AB  - The objective of this study is to review economic efficiency of smallholder farmers in sesame production in Ethiopia. Specifically, the review examines levels of Technical, Allocative and Economic efficiencies of sesame producer; and to review factors affecting efficiency of smallholder farmers in the study area. For this study both published and unpublished sources were used. Also, the study reviewed various functional forms that were fitted to estimate Technical, Allocative and Economic efficiencies levels and model that were fitted to estimate factor affecting efficiency of smallholder farmers. The review results indicate Cob-Douglas function and Translog functional form are alternative methods for evaluating efficiencies and were used for purposes of comparison; OLS is mainly used if the inefficiency scores are not truncated or censored for a specific value; Tobit regression approach is preferred over the OLS regression in the case of censored data. The review results indicate as there is a room to increase the efficiency of sesame producers. Variables such as non-farm income and credit access, experience in sesame production, distance of sesame farm from residence, education level and extension contact had major significant impact on Technical, Allocative and Economic efficiency. In order to improve efficiency of smallholder farmers in sesame production in Ethiopia, give consideration to the above mentioned socio economic and institutional factors is needed. Focusing on efficient use of existing resources and addressing the socio-economic and institutional factors by using existing technology and given input levels are crucial and relevant policy issues are recommended. Strengthening the existing livestock production system, credit access, agricultural extension system and invest in the provision of basic education to smallholder farmers are advisable.
VL  - 9
IS  - 4
ER  -

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Author Information

Yadeta Bedasa

Department of Agricultural Economics, Wollega University, Shambu, Ethiopia

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APA Style

Yadeta Bedasa. (2020). Review on Economic Efficiency of Smallholders Farmers in the Production of Sesame: The Case of Ethiopia. Journal of Investment and Management, 9(4), 107-114. https://doi.org/10.11648/j.jim.20200904.13

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ACS Style

Yadeta Bedasa. Review on Economic Efficiency of Smallholders Farmers in the Production of Sesame: The Case of Ethiopia. J. Invest. Manag. 2020, 9(4), 107-114. doi: 10.11648/j.jim.20200904.13

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AMA Style

Yadeta Bedasa. Review on Economic Efficiency of Smallholders Farmers in the Production of Sesame: The Case of Ethiopia. J Invest Manag. 2020;9(4):107-114. doi: 10.11648/j.jim.20200904.13

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@article{10.11648/j.jim.20200904.13,
  author = {Yadeta Bedasa},
  title = {Review on Economic Efficiency of Smallholders Farmers in the Production of Sesame: The Case of Ethiopia},
  journal = {Journal of Investment and Management},
  volume = {9},
  number = {4},
  pages = {107-114},
  doi = {10.11648/j.jim.20200904.13},
  url = {https://doi.org/10.11648/j.jim.20200904.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20200904.13},
  abstract = {The objective of this study is to review economic efficiency of smallholder farmers in sesame production in Ethiopia. Specifically, the review examines levels of Technical, Allocative and Economic efficiencies of sesame producer; and to review factors affecting efficiency of smallholder farmers in the study area. For this study both published and unpublished sources were used. Also, the study reviewed various functional forms that were fitted to estimate Technical, Allocative and Economic efficiencies levels and model that were fitted to estimate factor affecting efficiency of smallholder farmers. The review results indicate Cob-Douglas function and Translog functional form are alternative methods for evaluating efficiencies and were used for purposes of comparison; OLS is mainly used if the inefficiency scores are not truncated or censored for a specific value; Tobit regression approach is preferred over the OLS regression in the case of censored data. The review results indicate as there is a room to increase the efficiency of sesame producers. Variables such as non-farm income and credit access, experience in sesame production, distance of sesame farm from residence, education level and extension contact had major significant impact on Technical, Allocative and Economic efficiency. In order to improve efficiency of smallholder farmers in sesame production in Ethiopia, give consideration to the above mentioned socio economic and institutional factors is needed. Focusing on efficient use of existing resources and addressing the socio-economic and institutional factors by using existing technology and given input levels are crucial and relevant policy issues are recommended. Strengthening the existing livestock production system, credit access, agricultural extension system and invest in the provision of basic education to smallholder farmers are advisable.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - Review on Economic Efficiency of Smallholders Farmers in the Production of Sesame: The Case of Ethiopia
AU  - Yadeta Bedasa
Y1  - 2020/12/31
PY  - 2020
N1  - https://doi.org/10.11648/j.jim.20200904.13
DO  - 10.11648/j.jim.20200904.13
T2  - Journal of Investment and Management
JF  - Journal of Investment and Management
JO  - Journal of Investment and Management
SP  - 107
EP  - 114
PB  - Science Publishing Group
SN  - 2328-7721
UR  - https://doi.org/10.11648/j.jim.20200904.13
AB  - The objective of this study is to review economic efficiency of smallholder farmers in sesame production in Ethiopia. Specifically, the review examines levels of Technical, Allocative and Economic efficiencies of sesame producer; and to review factors affecting efficiency of smallholder farmers in the study area. For this study both published and unpublished sources were used. Also, the study reviewed various functional forms that were fitted to estimate Technical, Allocative and Economic efficiencies levels and model that were fitted to estimate factor affecting efficiency of smallholder farmers. The review results indicate Cob-Douglas function and Translog functional form are alternative methods for evaluating efficiencies and were used for purposes of comparison; OLS is mainly used if the inefficiency scores are not truncated or censored for a specific value; Tobit regression approach is preferred over the OLS regression in the case of censored data. The review results indicate as there is a room to increase the efficiency of sesame producers. Variables such as non-farm income and credit access, experience in sesame production, distance of sesame farm from residence, education level and extension contact had major significant impact on Technical, Allocative and Economic efficiency. In order to improve efficiency of smallholder farmers in sesame production in Ethiopia, give consideration to the above mentioned socio economic and institutional factors is needed. Focusing on efficient use of existing resources and addressing the socio-economic and institutional factors by using existing technology and given input levels are crucial and relevant policy issues are recommended. Strengthening the existing livestock production system, credit access, agricultural extension system and invest in the provision of basic education to smallholder farmers are advisable.
VL  - 9
IS  - 4
ER  -

Copy | Download