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Farm-heterogeneity and persistent and transient productive efficiencies in Ethiopia’s smallholder cereal farming Cover

Farm-heterogeneity and persistent and transient productive efficiencies in Ethiopia’s smallholder cereal farming

By:  and    
Open Access
|Oct 2020

Figures & Tables

Table 1

Summary statistics of the data (NT=1,648 observations)

Variable1999200420092015All-waves
MeanSDMeanSDMeanSDMeanSDMeanSDCV
Cereal output1,2601,3201,2531,3002,0652,3903,0204,0001,9522,6821.37
Fertilizers107.8115.188.0140.981.0104.3179.0166.2116.1139.01.19
Agrochemicals26.971.523.777.0114.7461.5336.7675.5133.9447.03.34
Labor316.3423.9266.2290.7170.8241.4593.91,222.2342.6714.02.08
Machinery0.64.641.3301.4836.83,216.4376.4915.5336.31,776.05.28
Livestock5.74.34.54.07.26.37.97.46.55.90.91
Land area1.51.14.922.62.814.21.81.42.612.44.77
Oxen1.81.21.41.31.91.51.91.41.81.40.78
Table 2

Estimates of the Parameters, Elasticities, TC, and RTS across Models (NT=1,648)

VariablesTFE modelFE, KH, and KLH models
EstimateSEElasticityEstimateSEElasticity
Constant4.144***0.4574.678***0.396
Fertilizer0.0890.0670.0120.0640.0800.004
Agrochemicals0.096**0.0500.0660.108*0.0590.071
Labor0.344***0.095−0.1150.351***0.114−0.116
Machinery−0.295***0.064−0.324−0.290***0.076−0.304
Livestock0.225**0.1060.2750.1970.1260.247
Oxen0.3860.2440.4710.3800.2920.495
Area0.0130.1130.2760.0670.1320.322
Fertilizer*Fertilizer−0.0030.015−0.0020.018
Agrochemicals*Agrochemicals−0.0010.012−0.0050.014
Labor*Labor−0.0310.019−0.0350.023
Machinery*Machinery0.062***0.0130.059***0.016
Livestock*Livestock0.125***0.0240.122***0.028
Oxen*Oxen−0.2170.185−0.2180.222
Area*Area−0.124***0.022−0.118***0.026
Fertilizer*Agrochemicals−0.0080.011−0.0040.013
Fertilizer*Labor0.0130.0210.0190.025
Fertilizer*Machinery−0.0030.012−0.0020.014
Fertilizer*Livestock−0.099***0.025−0.093***0.029
Fertilizer*Oxen0.112**0.0560.1030.066
Fertilizer*Area0.126***0.0300.111***0.035
Agrochemicals*Labor−0.0070.016−0.0120.020
Agrochemicals*Machinery0.0010.0110.0010.013
Agrochemicals*Livestock0.070***0.0240.067***0.028
Agrochemicals*Oxen−0.107**0.044−0.104**0.053
Agrochemicals*Area−0.0020.023−0.0070.028
Labor*Machinery0.071***0.0160.069***0.019
Labor*Livestock0.0450.0380.0510.046
Labor*Oxen−0.0980.080−0.1040.096
Labor*Area−0.0360.036−0.0430.043
Machinery*Livestock0.0060.0210.0020.025
Machinery*Oxen0.0180.4500.0210.054
Machinery*Area−0.042*0.230−0.0420.027
Livestock*Oxen−0.208**0.107−0.1950.128
Livestock*Area−0.195***0.058−0.193**0.070
Oxen*Area0.326***0.1200.332**0.143
Time (1=1999,...,4=2015)0.666***0.1390.686***0.162
Time*Time0.392***0.0480.356***0.052
Time*Fertilizer−0.026**0.012−0.024*0.014
Time*Agrochemicals−0.0110.009−0.0100.011
Time*Labor−0.119***0.018−0.114***0.022
Time*Machinery−0.036**0.015−0.029*0.017
Time*Livestock−0.052**0.022−0.050**0.026
Time*Oxen0.078*0.0430.090*0.052
Time*Area0.118***0.0260.114***0.031
RTS0.6600.710
Rate of TC0.9010.880

[i] Notes: *p< 0.05, **p< 0.01, and ***p< 0.001 levels of significance.

FE (fixed effects), KH (Kumbhakar and Heshmati, 1995), KLH (Kumbhakar et al., 2014), TFE (Greene, 2005a), and TCs (technical changes).

Table 3

Frequency distribution of persistent and transient TEs

TE-Interval (%)Persistent TETransient TE
FE and KH modelsKLH modelTFE modelKH modelKLH model
0−102.910013.410
11−2025.340042.720.36
21−3029.150025.550.91
31−4019.280012.504.13
41−5010.7600.123.5819.54
51−606.500.220.001.4050.24
61−703.365.380.180.6723.97
71−801.1247.097.400.120.85
81−901.3547.312.610.060
91−1000.22089.6800
Mean0.3040.7910.9440.2100.545
Std. Dev.0.1550.0530.0650.1110.082
Minimum0.0540.5670.4270.0200.105
Maximum1.0000.8891.0000.8400.783
Yearly mean of the transient efficiency
19990.9640.2130.550
20040.9580.1950.523
20090.9410.2150.559
20150.9180.2100.541
Figure 1

Distribution of persistent TE across different models, FE (left), KH (center), and KLH right).

Figure 2

Distribution of transient TE across different models, TFE (overall, left), KH (overall, center left), KLH (center right), and KH and KLH (transient, right).

Figure 3

The median, first, and third quartiles (middle, bottom, and top lines) of persistent and OTE in the TFE, KH, and KLH models.

Table 4

Kendall’s rank order correlation between different models

ComponentsPersistentTransient
ModelFEKHKLHTFEKHKLH
PTE_FE0.998
PTE _KH0.9980.998
PTE _KLH0.9980.9980.998
TTE_TFE−0.024−0.024−0.0241.000
TTE_KH0.8450.8450.845−0.0131.000
TTE_KLH0.3220.3220.3220.0430.4771.000

[i] Notes: P indicates persistent and T transient efficiency components.

Table 5

Mean efficiency measures by AEZs

ComponentsPersistentTransient
AEZs\ModelFE and KHKLHTFEKHKLH
Lowland0.2200.7630.8970.1510.525
Midland0.3110.7940.7940.2150.548
Highland0.3870.8130.9600.2670.560
Language: English
Published on: Oct 16, 2020
Published by: Sciendo
In partnership with: Paradigm Publishing Services
JEL:

© 2020 Oumer Berisso, Almas Heshmati, published by Sciendo
This work is licensed under the Creative Commons Attribution 4.0 License.