For Thesis Defence
For Thesis Defence
25/06/2021G.C
Addis Ababa, Ethiopia
Thesis Title
Back ground
Problem statement
Research questions
Objectives of the study
Conceptual framework
Research methodology
Result and discussion
Conclusion
Recommendation
Back ground
• It is a fact that at the early stage of economic growth, the major
economic activities are related to agriculture, which has a strong
growth linkage with other sectors (Morris et.al, 2007).
• However, the agriculture sector is unable to ensure food security and
alleviate poverty due to the fact that since the 1980s the production of
Africa has been too little food and low value-added products, and
productivity has been generally stagnant (As the agricultural sector's GDP
declines, it will have a negative impact on both agricultural poverty
reduction and food security.
• According to the Prosperity party's ten-year road map plan, people living
below the poverty line in rural Ethiopia were 30.4% in 2011, but this rate
was reduced to 25.6% by 2016.Recently, Ethiopia's agricultural
productivity performance has not been able to reduce the poverty rate of
rural citizens, and it is unable to play the role of producing enough input
for the manufacturing industry. AGRA, 2018)
Statement of the Problem
• For the past one and a half decades, Ethiopia's food cereal crop supply
and annual product consumption have demonstrated a consistent trend.
Despite the fact that the quantity of food crops produced has increased
significantly, Ethiopia's population continues to expand rapidly.
Furthermore, the availability of food cereal crops is expected to remain
stable, with the vast majority of Ethiopians consuming equal amounts of
food cereal crops each year (CSA, 2013).
• Ethiopia is Africa's second-most populous country (109.2 million
people), with a gross domestic product (GDP) of 84.4 billion dollars, 7.6%
GDP growth, 9.6% inflation, and a 2.5 percent population increase in
2018. In many developing countries, agriculture is a major source of income .
• Ethiopia is no exception, as its economy is primarily based on agriculture.
Agriculture accounts for over 50% of GDP, 85% of employment, 70% of
industrial raw materials, and 90% of foreign earnings. Crop and livestock
production are the primary sources of income and employment for 70% of
the country's rural population (World Bank, 2018a, b).
cont.
• Most previous research (Alemu & Haji, 2016; Musa et al. 2015; Belete,
2020; Gebrie & Mada 2018) has overlooked that technical efficiency of
major cereal crop productivity (land, capital, or labor) is the most
important factor in cereal crop production at the national level. Some of
them are concerned with administrative levels at the regional, district, or
zonal levels. Apart from that, they are all focused on total factor
productivity, which is insufficient to assess household cereal crop
productivity because it ties an output index to a composite index of all
inputs.
• TFP, on the other hand, faces numerous challenges in both theoretical
interpretation and empirical measurement; others focus on income
diversification. Therefore, this study filled this gap and considers
partial factor productivity measurement to be identified through which
cereal crop productivity indicators and also rural household cereal crop
productivity are adversely changed in Ethiopia.
Research Questions
Specific Objectives
To analyze the factors that determine technical efficiency
major cereal crop production in Ethiopia
To examine the sources inefficiency in major cereal crop
production in Ethiopia
To calculate the mean technical efficiency of farm producers
on the three major cereal crops in Ethiopia.
Conceptual framework
Research Methodology
β3lnlandsize+ vi − ui
The three identical models generated from this leading model for this study were
Efficiency Model
Crop Type X- maize: wheat: Sorghum:
Variables N=7,107 N=6,734 N=3,080
(Inputs) Coefficient Coefficient Coefficient
Lnfertlizer 0.076924*** 0.031672*** -0.46534**
Lnimprovedseed -0.01697** 0.047186*** 1.128469***
Lnareah 0.98957*** 0.991557*** 2.392435***
Inefficiency Model
Sex 0.280807*** -0.28274*** -0.57061**
Irrigation -0.67921*** -0.08451 -2.1589***
Extension 0.530505*** 0.123459*** 0.751875***
Cont.
• Besides the result of the frontier production function indicates that all
input variables except improved seed for maize production were
found to be binding in the production of major crops, meaning that an
increase in one of the inputs will enhance production, keeping
everything constant
• Fertilizer application in sorghum also needs another experiment, because
the findings directs a negative elasticity
• . Moreover, the mean technical inefficiency was 47.6%, 44% and 45%
for maize, wheat and sorghum, respectively. These are the result of
47.6%, 44%, and 45% inefficient resource use, respectively, resulting in
a significant major cereal crop yield gap. However, even though they are
relatively efficient, there is still room to enhance production by nearly
47.6%, 44% and 45% for maize, wheat and sorghum respectively,
Conclusion contd.