This study analyzed the economic efficiency of smallholder farmers in barley production in the case of Meket district, Amhara National Regional State, Ethiopia. A cross sectional data collected from a sample of 123 barley producers during the 2015/2016 production season was used for the analysis. Two stages random sampling method was used to select sample respondents. The translog functional form was chosen to estimate both production and cost functions and OLS estimation method was applied to identify allocative and economic inefficiencies factors, while technical inefficiency factors were analyzed by using single stage estimation approach. The estimated stochastic production frontier model indicated input variables such as fertilizer, human labor and oxen power as significant variables that increase the quantity of barley output, while barley seed had a negative effect. The estimated mean levels of technical, allocative and economic efficiencies of the sample farmers were about 70.9, 68.6 and 48.8%, respectively which revealed the presence of a room to increase their technical, allocative and economic efficiencies level on average by 29.1, 31.4 and 51.2%, respectively with the existing resources. Among the hypothesized factors expected to affect technical, allocative and economic inefficiencies, extension contact and number of barley plots significantly and negatively affected all inefficiencies level. Besides, distance of residence from the nearest main market was found to have a positive and significant effect on all inefficiencies of sampled farm households. Hence, emphasis should be given to decrease the inefficiency level of those more inefficient farm households via experience sharing among the better of farmers and usage of improved or certified barley seed. Besides this, policies and strategies of the government should be directed towards increasing farmers' education, improve the system of input distributions and institutional facilities.
Since both inflation and economic growth are not a new concept rather their relationships are waited still now as a debatable issue among macro-economists, policy makers, policy analysts, politicians and even the population itself by giving their own analysis by conduct a research and assumption based on the trend as before. Basically, the aims of this seminar paper are to review the relationship between inflation and economic growth as well as to review the causes, sources, determinants and impacts of Ethiopian inflation. Most of the studies indicated above shown that, higher and volatile inflation is bad for the economy. On the other hand, lower and stable inflation is considered as a promoter of the economy. Then the question should focus on what level of inflation is harmful to economic growth? Many economists have made researches on estimating the threshold level of inflation using panel data for a number of countries and time-series data for single country cases and these researchers fix the threshold level of inflation for both developing and developed country. But in this seminar paper, quantifying or fix the exact number of threshold level of Ethiopian inflation and decide below this level inflation has a positive effect on growth and beyond this level it has negative impact on growth is very difficult by simply review previous literature without conducting actual research and make a deep analysis. Even if it is the case, based on the literature it is surely possible to conclude the inflation rate has a serious negative effect on the growth of one country’s economy especially in Ethiopia, if inflation has a double digit of an annual growth.
The aim of this paper is to estimate households' willingness to pay (WTP) for the development of community based tourism (CBT) around Alelo Bad hot spring water. To achieve the stated objective, relevant data was collected from a total of 157 sample respondents through questionnaires, interviews and field observation techniques. In this study, both descriptive and econometric models (Seemingly Unrelated Bivariate Probit and Probit models) were used to analyze the collected data. The descriptive statistics clearly shows that 66.24% of the respondents were willing to pay for the existence of the proposed project while 33.76% were not willing to pay. The seemingly unrelated bivariate probit model output revealed that the mean WTP of the sample household heads per year for the proposed project was birr 468.75 ($16.401) as well as the total sample respondents has estimated to pay birr 73,593.75 ($2,575.045) per year per household head. Gender, age, family size, off-farm income, education status, social responsibility and initial bid values were statistically significant variables which affect the WTP decision of household heads in the study area. The government should create a conducive environment for different stakeholders to actively engage in boosting the returns of the tourism sector and fulfillment of the proposed project in the study area. The tourism policy should be amended in the form of allocating higher proportion of the revenue obtained from the tourism sector to the local communities for the development of social infrastructure, improving the living standard of the local communities and sustaining resource conservation.
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