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Influence Of Credit Constraint On Technical Efficiency Of Farm Households In Southeastern Ethiopia, Hussien Hamda Komicha, Bo Öhlmer

International Conference on African Development Archives

Credit constraint not only affects the purchasing power of farmers to procure farm inputs and cover operating costs in the short run, but also their capacity to make farm-related investments as well as risk behaviour in technology choice and adoption. These, in turn, have influence on technical efficiency of the farmers. Although credit constraint problem has been recognized in economics literature, especially in those dealing with developing countries, little emphasis has been given to its effect on productive efficiency of farmers. In light of this, explicitly considering credit constraint, this paper estimated technical efficiency of credit-constrained (CCFH) and unconstrained farm …