The Impact of education on A locative and Technical Efficiency of Farmers: The Case of Ethiopian Small Holders

Course ID
Ethiopian Economics Association (EEA)
Abay Afaw


As the potential to increase production by bringing more resources into use becomes more and more limited, it is natural that the eddiciency with which firms or farmers use available resources would become more important as a topic of investigation. This study attempts to examine the impact of education on technical and allocative efficiency of farmers using the frontier profit function approach. The result of the stochastic profit frontier functions show that there are considerable amount of deviations from the optimal profit efficiency level. It specifically shows that the mean level of profit efficiency in the sampled farmers is 50.0 percent suggesting that the level of profit inefficiency could be as high as 46 percent. The hypothesis of equal allocative and technical efficiency of educated and illiterate farmers was tested using the modified Y-L profit function model under various linear restrictions and the result revealed that educated farmers are relatively and absolutely more efficient than illiterate farmers. This implies that at the existing level of factor endowments and technology there is a potential to increase agricultural output by raising the education level of farmers and consequently, by making illiterate farmers operate more closer to the efficiency level achieved by their educated neighbors

Corporate Author: Ethiopian Economic Association/Ethiopian Economic Policy Research Institute (EEA/EEPRI)
Publisher: Ethiopian Economic Association (EEA)
Primary Descriptors:

Adult education; Agricultural education

Secondary Descriptor:

Literacy ; Agriculture -Economic aspects

Geographic Descriptors: Ethiopia
Cataloge Date: 03/02/2013
Broad Subject heading: Fundamental education
Call Number: 330.05 ETH JOU
Serial Key Title: Ethiopian Journal of Economics
Publication catagory: Ethiopian Journal of Economics
Content type: EEA Publication
Volume: V
Year: April, 1995
Publication date: 1995-03-02 00:00:00
Forum or Discussion date: 2013-03-02 00:00:00
PDF file:  Abay and Assefa_The Impact of education on A locative and Technical Efficiency of Farmers.pdf
Number: 1
Place of publication: Addis Ababa, Ethiopia
Type of material: Serial (Journal)
Current frequency: Semiannual
Author: Abay Afaw & Assefa Admassie