International Journal of Agricultural Economics

| Peer-Reviewed |

Review on Determinants of Economic Efficiency of Smallholder Maize Production in Ethiopia

Received: 26 June 2020    Accepted: 28 July 2020    Published: 10 August 2020
Views:       Downloads:

Share This Article

Abstract

Maize is Ethiopia‘s staple crop and is widely grown by smallholder farmers in most part. However, the productivity of this crop is remaining low relative to the potential available in the country. These have aggravated the food insecurity situation by widening the gap between demand for and supply of food. In Ethiopia, information on the determinants of economic efficiency and levels of smallholder maize production is lacking. This paper was aimed at reviewing the determinants of economic efficiency and the level of technical, allocative and economic efficiency of smallholder maize production in Ethiopia. In these review determinants like age, sex, education, livestock holding, frequency of contact with extension agent, participation in off/non-farm income, household perception, credit use, distance, mobile use, land fragmentation, land ownership and soil fertility were identified as the main determinants of economic efficiency of smallholder maize production in Ethiopia. The level technical, allocative and economic efficiency were different author to author through the review. This indicated that the smallholder maize producer in Ethiopia encountered the problem of inefficiency in maize production. Hence, planning and implementing suitable policy intervention by focusing on the abovementioned determinants are important in Ethiopia.

DOI 10.11648/j.ijae.20200504.15
Published in International Journal of Agricultural Economics (Volume 5, Issue 4, July 2020)
Page(s) 123-132
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

Determinant, Economic Efficiency, Ethiopia, Maize, Production, Smallholder

References
[1] Abdulai, A. and Huffman, W., 2000. Structural adjustment and economic efficiency of rice farmers in northern Ghana. Economic Development and Cultural Change, 48 (3), pp. 503-520.
[2] Abebe, G. G., 2014. Off-farm income and technical efficiency of smallholder farmers in Ethiopia.
[3] Afriat, S. N., 1972. Efficiency estimation of production functions. International Economic Review, 13: 568-598.
[4] Ahmed, M. H., 2013. Economic Efficiency of Smallholder Farmers in Maize Production: The Case of ArsiNegelle District, Oromia National Regional State, Ethiopia (Doctoral dissertation, Haramaya University).
[5] Aigner, k., P. Schmid and D. Lovell, 1977. Formulation and estimation of stochastic production function models. Journal of Econometrics 5: 21-37.
[6] Alene, A. D. (2003). Improved production technology and efficiency of smallholder farmers in Ethiopia: Extended parametric and non-parametric approaches to production efficiency analysis. PhD Thesis, University of Pretoria, South Africa.
[7] Ali, M. (1996). Quantifying the Socio-economic Determinants of Sustainable Crop Production: AAn Application to Wheat Cultivation in the Tarui of Nepal. J. Agric. Econ. 14: 45-60.
[8] BealuTukela, EndriasGeta, and TadesseAbabu 2013. Factors Affecting Economic Efficiency In Maize Production: The Case of BorichaWoreda In Sidama Zone, Southern Ethiopia. 28p.
[9] Beckhman S., K. Zahidul and J. Sumelius, 2010. Determinants of Technical Efficiency of Rice Farms in North-Central and North-Western Regions in Bangladesh.
[10] BekeleAlemayehu, 2013. Technical Efficiency Variation for Smallholder Irrigated Maize Producers: A Case Study of Tibila Surface Water Irrigation Scheme, Ethiopia.
[11] Besanko, D. and Braeutigam, R. R., 2005. Microeconomics. Hoboken.
[12] Biforin, J. O., T. Alimi, O. I. Baruwa and O. C. Ajewole. 2010. Determinant of Technical, Allocative and Economic efficiency in the plantain (Musa SPP) production, Ondotate, Nigeria.
[13] Boris, E., B. U. Ant and O. E. Pinheiro. (1997). Technical, Economic, and Allocative Efficiency in Peasant Farming: Evidence from the Dominican Republic. The Developing Economies, XXXV-1: 48–67.
[14] Coelli T., and G. E. Battese, 2006. An Introduction to Efficiency and Productivity Analysis, Kluwer Academic Publishers, Norwel, Massachusetts, U.S.A.
[15] CSA, 2014. The Federal Democratic Republic of Ethiopia Central Statistical AgencyAnalytical Report on Unemployment Survey Ethiopia.
[16] Debebe, S., Haji, J., Goshu, D. and Edriss, A. K., 2015. Technical, allocative, and economic efficiency among smallholder maize farmers in Southwestern Ethiopia: Parametric approach. Journal of Development andAgricultural Economics, 7 (8), pp. 282-291.
[17] Dlamini, S., J. Rugambisa, M. Masuku and AbnetBelete, 2010. Technical efficiency of the small scale sugarcane farmers in Swaziland: A case study of Vuvulane and Big bend farmers. Department of Agricultural Economics and Management, University of Swaziland.
[18] Elibariki, E. M, S. Hisano and T. Nariu. (2008). Explaining Productivity Variation Among Smallholder Maize Farmers in Tanzania, Kyoto University, Japan. In: The XII World Congress of Rural Sociology of the International Rural Sociology Association, Goyang, Korea, 2008 with “Analysis of Technical Efficiency of Smallholder Maize Farmers in Tanzania in the Globalization Era” 33P.
[19] Ephraim, W. C. (2003). Sources of Technical Efficiency among Smallholder Maize Farmers in Southern Malawi. Wadonda Consult Working Paper WC/01/03. University of Malawi, Zomba, Malawi.
[20] Essa, C. Mussa. (2011). Economic Efficiency of Smallholder Major Crops Production in the Central Highlands of Ethiopia, Egerton University, Uganda. 116p.
[21] FAO, 2014. Analysis of price incentives for maize in Ethiopia for the time period 2005-2013.
[22] Farrell, R. S. and C. A. K. Lovell, 1985. Technical Efficiency of Philippine Agriculture. Applied Economics, 17: 205-214.
[23] Farrell M. J. 1957. The measurement of productive efficiency. Journal of Royal Statistical Society Series A., 120: 253-290.
[24] FiromsaMersha Tekalign,.2019. Determinants of Technical Efficiency of Maize Production in Ethiopia: An Empirical Review. American Journal of Environmental and Resource Economics.
[25] Geda M. B. (2014). Economic Efficiency in Barely Production: The Case of Chole District, East Arsi Zone, Oromia National Regional State, Ethiopia (Doctoral dissertation, Haramaya University).
[26] Ghorbani, A., Mirmahdavi, S. A. and Rahimabadi, E. (2009). Economic efficiency of Caspian Cattle Feedlot Farms. Asian Journal of Animal Sciences 3 (1): 25-32.
[27] Haile, K., Haji, J. and Tegegne, B., 2018. Technical Efficiency of Sorghum Production: The Case of Smallholder Farmers in Konso District, Southern Ethiopia. Journal of Agriculture and Crops, 4 (5), pp. 50-62.
[28] Hailu, G., Goddard, E. W. and Jeffrey, S. R., 2005, July. Measuring efficiency in fruit and vegetable marketing cooperatives with heterogeneous technologies in Canada. In American Agricultural Economics AssociationAnnual Meeting, Providence, Rhode Island.
[29] Haji, J., 2008. Economic efficiency and marketing performance of vegetable production in the eastern and centralparts of Ethiopia (Vol. 2008, No. 17).
[30] Headey, E. O., David M. and Jems A., 2010). Economics of Agricultural Production and Resource Use, New York, Prentice-Hall.
[31] Inuwa, M. M., 2018. Economic analysis and Resource Use Efficiency on Maize Production Under Sasakawa Technologies InBauchi, Nigeria.
[32] Kassim, Y., J. Underwood, and B. Raphael, 2010. Data Envelopment Analysis of IT Business Value in Engineering and Construction Organization.
[33] Khan, H. and I. Saeed. (2011). Measurement of Technical, Allocative and Economic Efficiency of Tomato Farms in Northern Pakistan. In: International Conference on Management, Economics and Social Sciences (ICMESS'2011) Bangkok, Dec, 2011. 468P.
[34] Kifle D. Moti J., Belaineh L. 2017. Economic efficiency of smallholder farmers in maize production in BakoTibe district, Ethiopia. Development Country Studies Vol. 7, No. 2.
[35] Kilic, O., T. Binici and R. Carl, 2009. Assessing the efficiency of hazelnut production. Department of Agricultural Economics, Faculty of Agriculture, University, Samsun, Turkey.
[36] Koopmans T. C. 1951. 'Analysis of Production as an Efficient Combination of Activities', Activity analysis of production and allocation 13: 33-37.
[37] Kpotor P., 2012. Evaluation of newly released maize varieties in Ghana for yield and stabilityunder three nitrogen application rates in two agro-ecological zones.
[38] Kumbhakar, S. C. and Tsionas, E. G., 2006. Estimation of stochastic frontier production functions with inputoriented technical efficiency. Journal of Econometrics, 133 (1), pp. 71-96.
[39] Meeusen, W. 1977. Efficiency estimation from Cobb-Douglas production functions with composed error. International Economic Review. 18: 435-444.
[40] Mustefa. Mulugeta T. and Raja K. 2017 Economic efficiency in maize production in Ilu Ababor zone, Ethiopia. Research Journal of Agriculture and Forestry Sciences Vol. 5 (12), 1-8.
[41] Nikaido, Y., 2004. Technical Efficiency of Small Scale Industry: Application of Stochastic mode. Department of agricultural economics and extension nasarawa state university, Nigeria.
[42] Nyagaka, D. O., Obare, G. A., Omiti, J. M., Nguyo, W., 2010. Technical Efficiency in Resource Use: Evidence from Smallholder Irish Potato Farmers in Nyandarua North Kenya. African Journal of Agricultural Research 5 (11), 1179-1186.
[43] Omonona, B. T., Egbetokun, O. A. and Akanbi, A. T., 2010. Farmers resource-use and technical efficiency in cowpea production in Nigeria. Economic Analysis and Policy, 40 (1), p. 87.
[44] Ozkan, B., Ceylan, R. F and Kizilay, H. (2009). A Review of Literature on Productive Efficiency in Agricultural Production. Journal of Applied Sciences Research 5 (7): 796-801.
[45] Palmer S. and D. J. Torgerson. 1999. Economic Notes: Definitions of Efficiency', BMJ (Clinical research ed.) 318 (7191): 1136. Policy Research Institute, Addis Ababa, Ethiopia.
[46] Rashid. S., Kindie Getnet, and Solomon Lemma, 2010. Maize Value Chain Potential inEthiopia, Constraints and opportunities for enhancing the system. IFPRI (International Food Policy Research Institute), USA.
[47] Rebecca, B. T. (2011). Technical Efficiency in Maize Production by Small-Scale Farmers in Ga-Mothiba, Limpopo Province, South Africa. Msc Thesis. University of Limpopo Private Bag X1106, Sovenga, South Africa. 84p.
[48] Schmidt, P., 1976. On the statistical estimation of parametric frontier production functions. Rev. Econ. Stat. 58, 238–239. Michigan state university, USA.
[49] Shafiq, M. and T. Rehman, 2000. The Extent of Resource Use Inefficiencies in Cotton Production in Pakistan Punjab: An Application of Data Envelopment Analysis. Agricultural Economics Journal, 22: 321-330.
[50] Simonyan. J. B, B. D Umoren and B. C Okoye. (2011). Gender Differentials in Technical Efficiency Among Maize Farmers in EssienUdim Local Government Area, Nigeria, International Journal of Economics and Management Sciences Vol. 1, No. 2, Pp. 17-23.
[51] Tolesa T, Temesgen K, Zekarias Sh. 2019. Economic Efficiency of Smallholder Farmers in Maize Production in GudeyaBila District, Oromia National Regional State, Ethiopia: Parametric Approach. Journal of Applied Agricultural Economics and Policy Analysis, 2019, Vol. 2, No. 1, 1-7.
[52] Thomas, C & Maurice, S. 2013. Managerial Economics: Foundations of Business Analysis and Strategy, 667.
[53] Udoh, E. J. (2000). Land Management Resource Use Efficiency among Farmers in South Eastern Nigeria. Unpublished Ph.D Thesis, Department of Agricultural Economics University of Ibadan Nigeria.
[54] Umoh, G. S., 2006. Resource use efficiency in urban farming: An application of stochastic frontier production function. International Journal of Agriculture and Biology, 8 (1), pp. 38-44.
[55] WondimuTesfaye, 2013. Determinants of technical efficiency in maize production: the case of smallholder farmers in dhidhessa district, illubabor zone, Ethiopia, M.Sc. Thesis.
[56] Xinshen, D., 2010. Policies for Agricultural Development, Poverty Reduction and FoodSecurity.
[57] Zalkuwi, J. Y, Z. Dia and R. Z. Dia. (2010). Analysis of Economic Efficiency of Maize Production in Ganye Local Government Area Adamawa State, Nigeria, Report and Opinion; 2 (7) Http//Www.Sciencepub.Net/Report
Cite This Article
  • APA Style

    Mideksa Dabessa Iticha. (2020). Review on Determinants of Economic Efficiency of Smallholder Maize Production in Ethiopia. International Journal of Agricultural Economics, 5(4), 123-132. https://doi.org/10.11648/j.ijae.20200504.15

    Copy | Download

    ACS Style

    Mideksa Dabessa Iticha. Review on Determinants of Economic Efficiency of Smallholder Maize Production in Ethiopia. Int. J. Agric. Econ. 2020, 5(4), 123-132. doi: 10.11648/j.ijae.20200504.15

    Copy | Download

    AMA Style

    Mideksa Dabessa Iticha. Review on Determinants of Economic Efficiency of Smallholder Maize Production in Ethiopia. Int J Agric Econ. 2020;5(4):123-132. doi: 10.11648/j.ijae.20200504.15

    Copy | Download

  • @article{10.11648/j.ijae.20200504.15,
      author = {Mideksa Dabessa Iticha},
      title = {Review on Determinants of Economic Efficiency of Smallholder Maize Production in Ethiopia},
      journal = {International Journal of Agricultural Economics},
      volume = {5},
      number = {4},
      pages = {123-132},
      doi = {10.11648/j.ijae.20200504.15},
      url = {https://doi.org/10.11648/j.ijae.20200504.15},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20200504.15},
      abstract = {Maize is Ethiopia‘s staple crop and is widely grown by smallholder farmers in most part. However, the productivity of this crop is remaining low relative to the potential available in the country. These have aggravated the food insecurity situation by widening the gap between demand for and supply of food. In Ethiopia, information on the determinants of economic efficiency and levels of smallholder maize production is lacking. This paper was aimed at reviewing the determinants of economic efficiency and the level of technical, allocative and economic efficiency of smallholder maize production in Ethiopia. In these review determinants like age, sex, education, livestock holding, frequency of contact with extension agent, participation in off/non-farm income, household perception, credit use, distance, mobile use, land fragmentation, land ownership and soil fertility were identified as the main determinants of economic efficiency of smallholder maize production in Ethiopia. The level technical, allocative and economic efficiency were different author to author through the review. This indicated that the smallholder maize producer in Ethiopia encountered the problem of inefficiency in maize production. Hence, planning and implementing suitable policy intervention by focusing on the abovementioned determinants are important in Ethiopia.},
     year = {2020}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - Review on Determinants of Economic Efficiency of Smallholder Maize Production in Ethiopia
    AU  - Mideksa Dabessa Iticha
    Y1  - 2020/08/10
    PY  - 2020
    N1  - https://doi.org/10.11648/j.ijae.20200504.15
    DO  - 10.11648/j.ijae.20200504.15
    T2  - International Journal of Agricultural Economics
    JF  - International Journal of Agricultural Economics
    JO  - International Journal of Agricultural Economics
    SP  - 123
    EP  - 132
    PB  - Science Publishing Group
    SN  - 2575-3843
    UR  - https://doi.org/10.11648/j.ijae.20200504.15
    AB  - Maize is Ethiopia‘s staple crop and is widely grown by smallholder farmers in most part. However, the productivity of this crop is remaining low relative to the potential available in the country. These have aggravated the food insecurity situation by widening the gap between demand for and supply of food. In Ethiopia, information on the determinants of economic efficiency and levels of smallholder maize production is lacking. This paper was aimed at reviewing the determinants of economic efficiency and the level of technical, allocative and economic efficiency of smallholder maize production in Ethiopia. In these review determinants like age, sex, education, livestock holding, frequency of contact with extension agent, participation in off/non-farm income, household perception, credit use, distance, mobile use, land fragmentation, land ownership and soil fertility were identified as the main determinants of economic efficiency of smallholder maize production in Ethiopia. The level technical, allocative and economic efficiency were different author to author through the review. This indicated that the smallholder maize producer in Ethiopia encountered the problem of inefficiency in maize production. Hence, planning and implementing suitable policy intervention by focusing on the abovementioned determinants are important in Ethiopia.
    VL  - 5
    IS  - 4
    ER  - 

    Copy | Download

Author Information
  • Department of Agricultural Economics, Ambo University, Woliso, Ethiopia

  • Sections