Production Efficiency in Peasant Agriculture: An Application of LISREL Model

Mariam, Yohannes; Eisemon, Thomas and Coffin, Garth (1993): Production Efficiency in Peasant Agriculture: An Application of LISREL Model. Unpublished.

Abstract

The study examined a simplified conceptual model which incorporates variables that influence the processes and consequences of household decision-making in the Ada and Selale districts of the Ethiopian highlands. Linear structural relations (LISREL) analysis was performed on three conceptual models.

The results of LISREL analysis indicate that the magnitude of contribution of factors to production efficiency in descending order as: skill variables (e.g., experience, secular education and production knowledge), consequences of access to resources or institutions (e.g., wealth), technologies adopted, physical factors (e.g., land and labour) and extension education. The impact of inputs on production efficiency was greater among farmers who have adopted one or two technologies (Ada) and two or more technologies (Selale). Successful adoption can be attained if, given appropriate socioeconomic environment, skills of producers are matched to the requirements of technologies, and when the choice of technologies are compatible with the goals of households, experience, region and enterprise specific comparative advantages.

• Item Type: MPRA Paper
• Language: English
• Keywords: Linear structural relations (LISREL); production efficiency; knowledge; technology adoption; Ethiopia; peasant
• Subjects: Z - Other Special Topics > Z1 - Cultural Economics; Economic Sociology; Economic Anthropology > Z13 - Social Norms and Social Capital; Social Networks; Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q1 - Agriculture > Q13 - Agricultural Markets and Marketing; Cooperatives; Agribusiness; Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q1 - Agriculture > Q18 - Agricultural Policy; Food Policy; O - Economic Development, Technological Change, and Growth > O5 - Economywide Country Studies > O55 - Africa; Z - Other Special Topics > Z1 - Cultural Economics; Economic Sociology; Economic Anthropology; Y - Miscellaneous Categories > Y4 - Dissertations > Y40 - Dissertations; J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J22 - Time Allocation and Labor Supply; Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q1 - Agriculture > Q15 - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O33 - Technological Change: Choices and Consequences; Diffusion Processes; Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q1 - Agriculture > Q16 - R&D; Agricultural Technology; Agricultural Extension Services; Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q1 - Agriculture > Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets; P - Economic Systems > P3 - Socialist Institutions and Their Transitions > P32 - Collectives; Communes; Agriculture; O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O31 - Innovation and Invention: Processes and Incentives

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