Agricultural Input Use, Total Factor Productivity Growth and Rural Poverty: Dynamics and Patterns in Southern Ethiopia
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Date
2021-06
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Addis Ababa University
Abstract
Evidence shows that the rate of input use is decisive for productivity growth; the percentage of
farmers who applied fertilizer has slow progress in Ethiopia. Studies suggested possible ways of
addressing in the limitations of understanding the empirical knowledge and methods. This study
analyzed the impact of agricultural input use to augment the productivity of major crops. A panel
data of (2011, 2013, and 2015) acquired from the Ethiopian socio-economic survey was used. It
was analyzed using the basic fixed effect model and dose-response function under exogenous and
endogenous treatment models. In the exogenous and endogenous treatment cases, households
applying fertilizer have achieved actual yields with different levels of higher outputs than their
counterparts. In endogenous treatment, the household applying fertilizer harvested higher output
than those in the counterfactual condition. Though factors affecting the products of crops have a
significant effect on their productivity, the level of its impact varies in both exogenous and
endogenous treatment approaches. On average, its productivity was 6.16 per year and exhibited
a clear upward trend for the first two rounds. Although the upward trend declined from 2013-
2015, the overall productivity increased in the survey years. Moreover, inputs: fertilizer, seed,
labor force, farm capital use have a positive effect on aggregate outputs of considered crops.
Findings pinpoint the policy that farmers should focus on intensity use of inputs and improve
production.
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Keywords
Treatment effects, Dose-response function, Productivity, Fertilizer, Intensity.