The Determinants of Modern Agricultural Inputs Adoption and their Productivity in Ethiopia (The Case of Amhara and Tigray Regions)
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Date
2006-07
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Addis Ababa University
Abstract
The role of the agricultural sector in terms of its contribution to the Ethiopian
economy is very immense. Further, the success and failure of the Ethiopian economy
is highly correlated to the performance of this sector. But, still now, the sector is
operated by traditional means of production and well known for its backwardness.
Hence, to accelerate the sector’s growth and increase its contribution to the overall
economic growth and securing the food self sufficiency objective of the country, the
application of modern inputs in the sector plays a great role.
This paper mainly aims at identifying those factors which significantly contribute to
the adoption decision of modern agricultural inputs by the farmers and their
productivity. To this end, the data collected by EDRI in 2001/2002 is used. In order to
identify the significant factors contributing to the farmers’ adoption decision, the logit
model is used. The factors contributing to productivity are identified using the Cobb-
Douglas production function model.
It is found that farmers endowed with better resources are better adopters in both
Amhara and Tigray regions. The distance of input delivery institutions from the
household, extension contact of the farmers and agro-ecological conditions are also
major determinants of the adoption decision in both regions. Further, the socioeconomic
status of the farmers and the education levels of the household head’s are
significant in Amhara regions.
The impact of land size, the ownership of oxen and agro-ecological conditions to the
productivities of farmers in both regions are significant. Further, other sources of
income than agriculture, access to credit and ownership of radio are significant
determinants of productivity in Tigray. But in the case of Amhara region, whether the
farmer is adopter or not, whether there is sick family member in the household and
the socio-economic status affect the productivity of farmers.
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Keywords
Economic Policy Analysis, Ethiopian Economy