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Production Efficiency in Peasant Agriculture: An Application of LISREL Model

Author

Listed:
  • Mariam, Yohannes
  • Eisemon, Thomas
  • Coffin, Garth

Abstract

The study examined a simplified conceptual model which incorporates variables that influence the processes and consequences of household decision-making in the Ada and Selale districts of the Ethiopian highlands. Linear structural relations (LISREL) analysis was performed on three conceptual models. The results of LISREL analysis indicate that the magnitude of contribution of factors to production efficiency in descending order as: skill variables (e.g., experience, secular education and production knowledge), consequences of access to resources or institutions (e.g., wealth), technologies adopted, physical factors (e.g., land and labour) and extension education. The impact of inputs on production efficiency was greater among farmers who have adopted one or two technologies (Ada) and two or more technologies (Selale). Successful adoption can be attained if, given appropriate socioeconomic environment, skills of producers are matched to the requirements of technologies, and when the choice of technologies are compatible with the goals of households, experience, region and enterprise specific comparative advantages.

Suggested Citation

  • Mariam, Yohannes & Eisemon, Thomas & Coffin, Garth, 1993. "Production Efficiency in Peasant Agriculture: An Application of LISREL Model," MPRA Paper 403, University Library of Munich, Germany, revised 12 Aug 1994.
    • Handle: RePEc:pra:mprapa:403
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    References listed on IDEAS

    as
    1. Getahun, Amare, 1980. "Agro-climates and agricultural systems in Ethiopia," Agricultural Systems, Elsevier, vol. 5(1), pages 39-50.
    2. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-298, January.
    3. Ekanayake, S.A.B. & Jayasuriya, Sisira, 1989. "Change, Adjustment And The Role Of Specific Experience: Evidence From Sri Lankan Rice Farming," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 33(2), pages 1-13, August.
    4. Getahun, Amare, 1978. "Agricultural systems in Ethiopia," Agricultural Systems, Elsevier, vol. 3(4), pages 281-293, October.
    5. H. Becker, 1990. "Labour Input Decisions Of Subsistence Farm Households In Southern Malawi," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(2), pages 162-171, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Linear structural relations (LISREL); production efficiency; knowledge; technology adoption; Ethiopia; peasant;
    All these keywords.

    JEL classification:

    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • Z1 - Other Special Topics - - Cultural Economics
    • Y40 - Miscellaneous Categories - - Dissertations - - - Dissertations
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • P32 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Collectives; Communes; Agricultural Institutions
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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