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Smallholders, institutional services, and commercial transformation in Ethiopia

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Title Smallholders, institutional services, and commercial transformation in Ethiopia
 
Creator Gebremedhin, Berhanu
Jaleta, Moti
Hoekstra, Dirk
 
Description This article examines the role of institutional services of credit, input supply, and extension in the overall commercial transformation process of smallholder agriculture in Ethiopia. Survey data collected in 2006 from 309 sample households in three districts of Ethiopia are used for the analyses. Tobit regression models are used to measure the effect of access to services on the intensity of inputs use for fertilizer and agrochemicals. A probit model is used to measure these effects on the adoption of improved seeds. Intensity of use of seeds is analyzed using an ordinary least squares model. Logarithmic Cobb–Douglass functions are estimated to analyze the effect of access to services on crop productivity. Heckman's two-stage estimation is used to examine determinants of household market participation and the extents of participation. Results show that access to institutional support services plays a significant role in enhancing smallholder productivity and market orientation. Our results imply that expanding and strengthening the institutional services is critical for the intensification and market orientation of smallholder agriculture in Ethiopia. In particular, appropriate incentives and regulatory systems are urgently needed to encourage the involvement of the private sector in the provision of agricultural services.
Canadian International Development Agency
 
Date 2010-01-04T14:16:05Z
2010-01-04T14:16:05Z
2009-11-15
 
Type Journal Article
 
Identifier Gebremedhin, B.; Jaleta, M.; Hoekstra, D. 2009. Smallholders, institutional services, and commercial transformation in Ethiopia. Agricultural Economics. v. 40(s1). p. 773 - 787.
https://hdl.handle.net/10568/338
 
Language en
 
Source Agricultural Economics