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


<p>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</p>

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

<p>Adult education; Agricultural education</p>

Secondary Descriptor: 

<p>Literacy ; Agriculture -Economic aspects</p>

Geographic Descriptors: 
Cataloge Date: 
Broad Subject heading: 
Fundamental education
Call Number: 
330.05 ETH JOU
Serial Key Title: 
Ethiopian Journal of Economics
Publication catagory: 
Content type: 
April, 1995
Publication date: 
1995-03-02 00:00:00
Forum or Discussion date: 
2013-03-02 00:00:00
Place of publication: 
Addis Ababa, Ethiopia
Type of material: 
Serial (Journal)
Current frequency: