10th International Science Congress (ISC-2020) will be Postponed to 8th and 9th December 2021 Due to COVID-19.  International E-publication: Publish Projects, Dissertation, Theses, Books, Souvenir, Conference Proceeding with ISBN.  International E-Bulletin: Information/News regarding: Academics and Research

Meta regression analysis of economic efficiency in farm households in Ethiopia

Author Affiliations

  • 1Agricultural Economics Department Haramaya University, Ethiopia
  • 2Agricultural Economics Department Haramaya University, Ethiopia

Res. J. Agriculture & Forestry Sci., Volume 7, Issue (4), Pages 1-9, October,8 (2019)


The focus of this review paper was to analyze the economic efficiency in farm households in Ethiopia by using meta-regression analysis of previous studies conducted so far on the specified issue. For this purpose, a total of 20 (twenty) frontier studies conducted in different parts of the country on economic efficiency in farming households were compiled and a total of 22 observations were identified for data extraction. The extracted data were analyzed through descriptive statistics as well as econometric models (Tobit model). The descriptive statistics shows that the mean economic efficiency and technical efficiency estimates for the observation were 0.422 and 0.792 respectively. On the other hand, the mean technical efficiency score for reviewed empirical studies for grain crops and other crops were 0.764 and 0.700 respectively. The t-test statistics shows that, the mean economic efficiency score for reviewed empirical studies in different grouping variables (study product type, location of study and method of efficiency analysis) does not have significant difference whereas the test shows the existence of significant difference in mean technical efficiency score for grain crops and other crops indicating that the mean technical efficiency score for grain crops is higher than other crops. The econometric model result shows that out of six explanatory variables included in the model study product type, location of study area and method of efficiency analysis does not have significant influence on the mean economic efficiency score of empirical studies whereas sample size, number of explanatory variables and mean technical efficiency score have significant influence on the mean economic efficiency score of empirical studies at 5, 1 and 5% level of significance respectively. Sample size and mean technical efficiency score have negative influence whereas number of explanatory variables has positive influence. It is obvious that, for clear policy recommendation, accurate estimates of economic efficiency especially for commercial crops are crucial. In such issues, meta-analysis has paramount importance. Therefore, though the findings of this analysis shows and identifies the relationship between different explanatory variables and economic efficiency, it is better if further analysis covering large number of studies, wide geographic area and different agricultural commodities is conducted.


  1. National Bank of Ethiopia. (2017). Annual Report. Addis Ababa Ethiopia., undefined, undefined
  2. Kuosmanen T., Johnson A. and Saastamoinen A. (2014)., Stochastic Nonparametric Approach to Efficiency Analysis: A unified framework., In: Zhu J (Ed.), Handbook on data envelopment analysis. Springer, New York, USA, 1-49.
  3. Baten M.A., Kamil A.A. and Haque M.A. (2009)., Modeling technical inefficiencies effects in a stochastic frontier production function for panel data., African Journal of Agricultural Research, 4(12), 1374-1382.
  4. Coelli T.J., Rao D.P., O'Donnell C.J. and Battese G.E. (1998)., An introduction to productivity and efficiency analysis., Springer Science: New York..
  5. Hoyo J.J.G., Espino D.C. and Toribio R.J. (2004)., Determination of Technical Efficiency of Fisheries by Stochastic Frontier Models: A case on the Gulf of Cadiz (Spain)., Journal of Marine Science, 61, 416-421.
  6. Thiam A., Bravo-Ureta B.E. and Rivas T.E. (2001)., Technical efficiency in developing country agriculture: a meta-analysis., Agricultural Economics, 25, 235-243.
  7. Farrell M.J. (1957)., The measurement of Productive Efficiency., Journal of Royal Statistical Society, 120(3), 253-281.
  8. Aigner D.J. and Chu S.F. (1968)., On Estimating Industry Production Function., American Economic Review, 58(4), 826-839.
  9. Aigner D.J., Lovell C.A.K. and Schmidt P.J. (1977)., Formulation and Estimation of Stochastic Frontier Production Function Models., Journal of Econometrics, 6, 21-37.
  10. Meeusen W. and van den Broeck J. (1977)., Efficiency Estimation from Cobb-Douglas Production Functions with Composite error., International Economic Review, 18(2), 435-444.
  11. Charnes A., Cooper W.W. and Rhodes E. (1978)., Measuring the efficiency of decision making units., European Journal of Operational Research, 2(6), 429-444.
  12. Stanley T.D., Giles M., Heckemeyer H.J., Johnston J.R., Laroche P., Nelson P.J., Paldam M., Poot J. and Pugh G. (2013)., Meta-Analysis of Economics Research Reporting Guidelines., Journal of Economic Surveys, 27(2), 390-394.
  13. Daniel Hailu (2016)., Analysis of Economic Efficiency in Potato Production: The case of Smallholder Farmers in Welmera District, Oromia Special Zone, Oromia, Ethiopia(Unpublished M.Sc. thesis)., Hawassa University, Hawassa, Ethiopia.
  14. Hika Wana and Oliyad Sori (2018)., Analysis of Economic Efficiency of Sesame (SesamumIndicum L) Production in Babogambel District of West Wollega Zone, Oromia Region, Ethiopia., Food Science and Quality Management, 76.
  15. Berhan Tegegne (2015)., Determinants of technical, allocative and economic efficiencies among onion producing farmers in irrigated agriculture: Empirical evidence from Kobo district, Amhara region, Ethiopia., African Journal of Agricultural Research,10(20), 2181-2189.http://dx.10.5897/AJAR2015.9564.org
  16. Mustefa Bati, Alemu Ayele, Mulugeta Tilahun and Parabathina R.K. (2017)., Studies on Economic Efficiency of Coffee Production in Ilu Abbabor Zone, Oromia Region, Ethiopia., Journal of Agricultural Economics and Rural Development,3(3), 293-306
  17. Hassen Beshir, BezabihEmana, Belay Kassa and Jema Haji (2012)., Economic efficiency of mixed crop-livestock production system in the north eastern highlands of Ethiopia: the stochastic frontier approach., Journal of Agricultural Economics and Development, 1(1), 10-20.
  18. Getachew Wollie, Lemma Zemedu and BosenaTegegn (2018)., Economic efficiency of smallholder farmers in barley production in Meket district, Ethiopia., Journal of Development and Agricultural Economics, 10(10), 328-338. http://dx.0.5897/JDAE2018.0960.org
  19. Kifle Degefa, Moti Jaleta and Belaineh Legesse (2017)., Economic Efficiency of Smallholder Farmers in Maize Production in BakoTibe District, Ethiopia., Developing Country Studie,7(2), 80-86.
  20. Essa Chanie (2011)., Economic Efficiency of Smallholder Major Crops Production in the Central Highlands of Ethiopia (Unpublished M.Sc. thesis)., Egerton University, Nakuru, Kenya.
  21. Gosa Alemu and Jema Haji (2016)., Economic Efficiency of Sorghum Production for Smallholder Farmers in Eastern Ethiopia: The Case of Habro District., Journal of Economics and Sustainable Development, 7(15), 44-51.
  22. Solomon Bizuayehu (2012)., Economic Efficiency of Wheat Seed Production: Amhara Region, Ethiopia (Unpublished M.Sc. thesis)., Haramaya University, Ethiopia.
  23. Musa Hasen, AemroTazeze, Alem Mezgebo and Eden Andualem (2018)., Measuring Maize Production Efficiency in the Eastern Ethiopia: Stochastic Frontier Approach., African Journal of Science, Technology, Innovation and Development, 10(7), 779-786. http://dx.10.1080/20421338.2018.1514757.org
  24. Mustefa Bati, Mulugeta Tilahun and Parabathina R.K. (2017)., Economic efficiency in maize production in Ilu Ababor zone, Ethiopia., Research Journal of Agriculture and Forestry Sciences, 5(12).
  25. Desale Gebretsadik (2017)., Technical, Allocative and Economic Efficiencies and Sources of Inefficiencies among Large-scale Sesame Producers in KaftaHumera District, Western Zone of Tigray, Ethiopia: Non-parametric Approach., International Journal of Scientific & Engineering Research, 8(6), 2041-2061.
  26. Sisay Debebe, Jema Haji, Degye Goshu and Edriss A. (2015)., Technical, Allocative, and Economic Efficiency among Smallholder Maize Farmers in Southwestern Ethiopia: Parametric approach., Journal of Development and Agricultural Economics, 7(8), 283-292. http://dx.10.5897/JDAE2015.0652.org
  27. Jema Haji and Hans Andersson (2006)., Determinants of Efficiency of Vegetable Production in Smallholder Farms: The case of Ethiopia., Acta Agriculturae Scand Section C, 3(3-4),125-137. http://dx. 10.1080/16507540601127714.org
  28. Ali Beshir (2014)., Farm Household Production Efficiency Analysis in Ethiopia: The Case of DessieZuria District (Unpublished M.Sc. thesis)., Wageningen University, Wageningen, Netherlands.
  29. Ermiyas Mekonnen, Endrias Geta and Belaineh Legesse (2015)., Production Efficiency of Sesame in Selamago District of South Omo Zone, Southern Ethiopia., Current Research in Agricultural Sciences, 2(1), 8-21. http://dx. 10.18488/journal.68/2015.2.1/
  30. Musa H. Ahmed, Lemma Z. and Endrias G. (2015)., Measuring Technical, Economic and Allocative Efficiency of Maize Production in Subsistence Farming: Evidence from the Central Rift Valley of Ethiopia., Applied Studies in Agribusiness and Commerce, 9(3), 63-74. http://dx.10.19041/APSTRACT/2015/3/9.org
  31. Alene A.D. and Hassan R.M. (2006)., The efficiency of traditional and hybrid maize production in eastern Ethiopia: An extended efficiency decomposition approach., Journal of African Economies, 15(1), 91-116. http://dx.10.1093/jae/eji017.org
  32. Teferra B., Legesse B., Haji J. and Kassie G.T. (2018)., Farm Level Efficiency of Crop Production in the Central Highlands of Ethiopia., American Journal of Rural Development, 6(2), 49-58. http://dx.10.12691/ajrd-6-2-4.org
  33. Greene W.H. (2002)., Econometric Analysis., 5th Edition, Prentice Hall, Upper Saddle River, 802.
  34. Thiam A., Bravo-Ureta B.E. and Rivas T.E. (2001)., Technical efficiency in developing country agriculture: a meta-analysis., Agricultural Economics, 25, 235-243.
  35. Brons M., Nijkamp P., Pels E. and Rietveld P. (2005)., Efficiency of urban public transit: A meta analysis., Transportation, 32(1), 1-21.
  36. Fatima H. and Yasmin B. (2016)., Efficiency and Productivity Analysis of Pakistan, Pakistan J. Agric. Res., 29(3), 312-322.
  37. Iršová Z. and Havránek T. (2010)., Measuring Bank Efficiency: a Meta-Regression Analysis., prague economic papers, 4, 307-328.