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Annual and cropping season environmental production conditions effects on smallholder technical efficiency in sub-Saharan Africa: Evidence from Ethiopia

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  • Baffoe-Bonnie, Anthony
  • Kostandini, Gentian

Abstract

This article investigates the impact of environmental production conditions on smallholder farmers’ technical efficiency in Ethiopia for wheat, maize, and sorghum farming. We use a household panel data set with annual and cropping season environmental production conditions to estimate the technical efficiency scores. The results show that including environmental production conditions in the stochastic frontier has a significant impact on farmers’ technical efficiency scores. Technical efficiency scores improve when environmental production conditions are incorporated in the stochastic frontier. Thus, accounting for environmental production conditions reduces the inefficiencies that otherwise may be attributed to the characteristics of smallholder farmers.
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  • Baffoe-Bonnie, Anthony & Kostandini, Gentian, 2017. "Annual and cropping season environmental production conditions effects on smallholder technical efficiency in sub-Saharan Africa: Evidence from Ethiopia," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258230, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea17:258230
    DOI: 10.22004/ag.econ.258230
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    Keywords

    Production Economics; Community/Rural/Urban Development; Environmental Economics and Policy;
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