Research Article
Economic efficiency of maize production: The case of West Hararghe Zone, Oromia National Regional State, Ethiopia
Author(s): T Legese*, T Abdella, M Kecha and N Ahmed
Maize is among the top five cereal crops in Ethiopia and increasing its efficiency of inputs in its production could be considered as an important base in bringing food security. Therefore, this study aimed at analyzing the economic efficiency of maize production in the West Hararghe Zone using cross-sectional data collected from 157 randomly selected sample households during 2018/19 production season. Cobb-Douglas production function, and Tobit model were used to achieve the specific objective of the study. The estimated mean Return to Scale (RTS) was 0.93%, which shows the decreasing returns to scale. The analysis of resource productivity revealed statistically significant positive elasticity of land, seed, urea fertilizer, and oxen power. The estimated results showed that the mean technical, allocative, and economic efficiencies were 92.37, 55.08, and 50.28% respectively. Results o.. Read More»