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Asmiro Abeje Fikadu
Aksum University
Corresponding Author
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Teff can be called the lifeblood of the majority of Ethiopians. However, Teff production is constrained by farmers’ own and neighbor farmers’ socioeconomic, demographic, intuitional, and farm characteristics that decrease Teff productivity. To fill this gap, a combination of modern technologies with a better level of farm efficiency becomes indispensable. Hence, this study aims to examine the technical efficiency of Teff farms controlling for neighborhood effects in Ethiopia using 858 Teff farmers. The stochastic frontier translog production and Spatial Lagged Explanatory (SLX) models are estimated using two waves of panel data from the Ethiopian socioeconomic survey. The unobserved heterogeneity has been controlled for by a correlated random effect estimation. The results show that the average technical efficiency of Teff farm is 78.5%, indicating that farmers have about 21.5% likelihood for improving their Teff farm efficiency, averagely. Besides, the estimated correlated random effect of the spatial lagged explanatory model indicates that gender, age, education, family size, community participation, planting method, average neighbors' community participation, average neighbors' planting method, average neighbors' mineral fertilizer application, and average neighbors' use of improved seed were found to significantly affect the level of technical efficiency of Teff farms in the study area. Moreover, we show that controlling for the neighborhood effects in the estimation of technical efficiency of Teff production statistically and significantly changes the inferences. Therefore, neighborhood effects can be the best alternative platform for farm knowledge transmission and use as a development actor if properly managed and organized.
Keywords
CRE estimation, Ethiopia, Neighborhood effect, SLX model, Technical efficiency, Teff, Translog production function
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CURRENT STATUS: Under Review
Version 1
Posted 28 May, 2020
Community comments: 10
Reviewer #2 agreed
On 23 Dec, 2020
Review #1 received
Received 09 Sep, 2020
Reviewer #1 agreed
On 10 Aug, 2020
Reviewers invited
Invitations sent on 03 Aug, 2020
Editor assigned
On 23 May, 2020
Submission checks complete
On 22 May, 2020
Editor invited
On 22 May, 2020
First submitted
On 20 May, 2020
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Subject Areas
Other Economics
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This preprint is under consideration at Journal of Economic Structures. A preprint is a preliminary version of a manuscript that has not completed peer review at a journal. Research Square does not conduct peer review prior to posting preprints. The posting of a preprint on this server should not be interpreted as an endorsement of its validity or suitability for dissemination as established information or for guiding clinical practice.
Learn more about In Review
Research
Asmiro Abeje Fikadu
Aksum University
Corresponding Author
Badges
Prescreen
This manuscript passed our Prescreen assessment
Complete author information
Appropriate declaration statements
Potential risks to human health
Prescreen
Peer Review Timeline
CURRENT STATUS: Under Review
Version 1
Posted 28 May, 2020
Community comments: 10
Reviewer #2 agreed
On 23 Dec, 2020
Review #1 received
Received 09 Sep, 2020
Reviewer #1 agreed
On 10 Aug, 2020
Reviewers invited
Invitations sent on 03 Aug, 2020
Editor assigned
On 23 May, 2020
Submission checks complete
On 22 May, 2020
Editor invited
On 22 May, 2020
First submitted
On 20 May, 2020
Metrics
Comments: 0
PDF Downloads: ...
HTML Views: ...
Subject Areas
Other Economics
License:
This work is licensed under a CC BY 4.0 License. Read Full License
Teff can be called the lifeblood of the majority of Ethiopians. However, Teff production is constrained by farmers’ own and neighbor farmers’ socioeconomic, demographic, intuitional, and farm characteristics that decrease Teff productivity. To fill this gap, a combination of modern technologies with a better level of farm efficiency becomes indispensable. Hence, this study aims to examine the technical efficiency of Teff farms controlling for neighborhood effects in Ethiopia using 858 Teff farmers. The stochastic frontier translog production and Spatial Lagged Explanatory (SLX) models are estimated using two waves of panel data from the Ethiopian socioeconomic survey. The unobserved heterogeneity has been controlled for by a correlated random effect estimation. The results show that the average technical efficiency of Teff farm is 78.5%, indicating that farmers have about 21.5% likelihood for improving their Teff farm efficiency, averagely. Besides, the estimated correlated random effect of the spatial lagged explanatory model indicates that gender, age, education, family size, community participation, planting method, average neighbors' community participation, average neighbors' planting method, average neighbors' mineral fertilizer application, and average neighbors' use of improved seed were found to significantly affect the level of technical efficiency of Teff farms in the study area. Moreover, we show that controlling for the neighborhood effects in the estimation of technical efficiency of Teff production statistically and significantly changes the inferences. Therefore, neighborhood effects can be the best alternative platform for farm knowledge transmission and use as a development actor if properly managed and organized.
Figure 1
Figure 2
Figure 3
Figure 4
Figure 5
This preprint is available for download as a PDF.
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