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Determinants of Potato Productivity in Dawuro Zone

cause area maraka Woreda

A Senior Essay for Partial Fulfillment of Bachelor of Degree in


Economics

By

Andualem Jebero

Advisor: Adugna E

Submitted to: Department of Economics

College of Business and Economics

Arba Minch University

June, 2018/AMU

1
Declaration

I, Andualem Jebero declared that this research work entitled “determinants of potato
productivity in case of maraka woreda Dawuro zone SNNP Regions’’ submitted to department
of Economics, College of Business and Economics, Arba Minch University in partial fulfillment of
the requirements of Bachelor of Art Degree in Economics is my original work, and has not been
printed published and submitted as a research work, or publication in any form by any
university in Ethiopia and abroad. Further the research confirms that all the sources of
materials used for this study have been appropriately cited and acknowledged.

By: _____________________________

Sign: ______________________________

Date: ______________________________

Certification

This is to certify that Andualem Jebero, student ID NO RBE/133/08 has conducted senior essay
work ‘’Determinants of potato productivity of Maraka, Dawuro Zone of SNNPR’’. This work is
completed with satisfactory evaluation of advisor and examiner as perform the requirement of
the university.

Advisor…………………………… (Msc) signature………………………. date………….

Examiner………………………………… Signature………………………. date………….

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Examiner………………………………… Signature………………………. date………….

Acknowledgment

First and for most I would like to praise my Almighty God for his help and Protection throughout
my life with all my beloved family. Next I would like to thanks my advisor ADUGNA. E, for his
valuable advice, comments and willingness to offer time for discussing and critiquing my thesis
work.

Furthermore, I would like to extend my heart full thanks to my family for their immeasurable
moral and financial support throughout my journey of life. And I would like to express my
honorable gratitude to Maraka Woreda Agricultural Office. At the last but not the least I want to
express my deepest gratitude to my class mates who have shared me their affections and
psychological encouragement.

Table of contents page

Declaration……………………………………………………………………………..
Certificate of evaluation…………………………………………………………………

Acknowledgement………………………………………………………........................

Abstract………………………………………………………………………………….
Acronym……………………………………………………………………....................
Contents………………………………………………………………………………….
List of tables and figures…………………………………………………………………
1. Introduction……………………………………………………………………………
1.1 Back ground of the study……………………………………………….....................
1.2. Statement of the problem……………………………………………………………
1.3. Research question……………………………………………………………………
1.4. Objective of the study……………………………………………………………….
1.4.1. General objective…………………………………………………………………..

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1.4.1. Specific objective …………………………………………………………………
1.5. Significance of the study…………………………………………………………….
1.6 Scope of the study……………………………………………………………............
Limitation of the study…………………………………………………………………..
1.7 Organization of the study…………………………………………………………….
2. Related literature review………………………………………………………………
2.1. Basic concept of productivity……………………………………………………….
2.2 Theoretical literature review………………………………..
2.2.1. Determinants of potato productivity…………………...........
2.2.2.The government policy factor……………………………………………….
2.2.3 The Physical environmental factor…………………………………………
2.3 The economic environmental factor…………………………………………………………
2.2 Empirical Literature Review

3 Research methodology………………………………………………………………
3.1 Description of study area………………………………………………………….
3.2 sample techniques and sample size………………………………………………..
3.3 Type and source of data…………………………………………………………...
3.4 Model specification………………………………………………………………
3.5. Description of variables…………………………………………………………..
3.6. Methods of data analysis…………………………………………………………..
3.7 Model Estimation………………………………………………………………….
4 .Data analysis presentation and discussion……………………………………………………………………………..
4.1. Descriptive analysis of the data…………………………………………………..
4.1.1 demographic and socio economic profile of the
respondents…………………………………………………………-
4.1.1. Sex structure of the household………………………………………………..
4.1.2 Age structure of the household………………………………………………..
4.1.3 Family size of the household………………………………………………….

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4.1.4 Education level of house hold……………………………
4.1.5 Farming experience of respondents………………………………………………………………………
4.1.6 Level of factors of production and yield of potato…………………………………………………………
4.2 Econometrical analysis……………………………………………………………...
4.2.1 Discussion of the result……………………………………………………………
4.2.2. Test of the model……………………………………………………………………

4.2.3 Diagnostic test……………………………………………………………………


4.2.4 Heteroskecedasticity Test………………………………………………………………..
4.2 .5.Muiticollinrty test……………………………………………………………..
4.2.6 Normality test………………………………………………………………….
5 Conclusion and recommendation……………………………………………………
5.1. Conclusion…………………………………………………………………………..
5.2 Recommendation…………………………………………………………………….
Reference………………………………………………………………………………..

Acronym

AIDB Agricultural industrial Development Bank

AISCO Agricultural input Supply Corporation

BORAD Bureau of Rural Agricultural Development

CBE Commercial bank of Ethiopia

CSA Central Statistical Authority

FAO Food and Agricultural organization

GDP Gross Domestic Product

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MOA Ministry of agriculture

NGO Non –Governmental Organization

SNNPR South Nation Nationality and people of Region

UNDP United Nations Development Program

OLS Ordinary Least Square

ADLI Agricultural Development Led Industrialization

PADETS Participatory Demonstration and Extension Training System

DAP Di-ammonium phosphate

TLU Tropical Live stock Unit

Abstract

In this study an attempt is made to examine the “determinants of potato productivity” from
single visit survey of the case study in maraka Woreda dawuro zone, SNNPR. More ever the
study was attempted to address key problems that cause potato yield decline (poor road
connection, low credit access, erratic rainfall, and poor technologies), socio-economic factors
influencing potato yield and the level of input use in the area. the major problem found in the
area were poor connection of road, erratic rain fall, in adequate access to credit, pests and
disease let delivery of input, and poor technologies. The major input used in the area was
fertilizer, improved seed, and pesticides. To undertake this study both primary and secondary
data were used. The data collected from different sources would be analyzed through
descriptive way of analysis such as table, percentage, and mean and Econometric analysis by
regression analysis to examine the effect of independent variable on dependent variable. To

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collect the data questionnaire was used. And the whole research was conducted within seven (7)
months from November up to May. Consequently, the study would try to give conclusion and
suggested solution and recommendation for the problem.

Chapter one
Introduction
1.1 back ground of study
Ethiopia is predominantly an agricultural country and apicultural plays a most role on the c.
Agriculture accounts for a bout 45.5 percent or GDP85 percent of employment and 94 of
Ethiopia experts (Adensina 2013) growing population, environmental degradation and low
agricultural production& productivity are potato problem faced by country. The government of
Ethiopia is currently giving sufficient attention to strategies of achieving food security and fourth
reduction (Leone2012).

The southern Nationalities and people passion (SNNPR) is one of the region as of Ethiopia with
peculiar and characteristics. It comprises a wide range of agro. Ecologies and people of Various
back grounds. It covers about 10%of the country area .i.e. 11.3139 square kilometers. Total
population of root crops (e. poi taro and trash potato is the major economics stay of the region
(Aharedetal. 20120).

Mereka worda is one of the Woreda of the SNNPR where agricultural of subsistence natural
and characterized by the intrusive production of both crops and livestock. Major crop, cultivated
in the aria includes Maize,potato,inset, haricot tean,and teff, potato and stands the second
important staple food crop on the area. there are under potato in Woreda has been expanding
due to population pressure ,ease of production, menial production cost and cultural practices the
crop, potential to do well on marginal soil and drought condition ,its highly flexbleplantaindeltas
and short vegetables cycle (smitetal 2010).

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Potato is one of the important to grown and valuable crops and farmer in more than 100 counters
in tropical and subtropical areas rally on its for its ability to produce high yields on marginal
land with little investment (Endaler to 2012).in east African potato is an important substance
food crop. Used staple and as famine reserve food supply (snifetall 2013).

Potato is commonly produced in complex and mixed cropped system many shall formers manage
the clop as a food resend. Rather than for high yields. The choose relative infertile soil. Plant
late. After other crops, such as cereal and pluses are planted. Apply no fertile and plan little
attention to use ding. Nevertheless. The crop has played significant role in marka Woreda. And it
has tremendous potential to give support to food security if improved production to technologies
are adopted. In the study area the crop serves as a form of house hold food insurance and as a
result it is planted up three times during a year (getahuetal 2013).

Giving increasing demand for food because of increasing recto population growth and decreasing
hand holdings in the area. The adoption of improved agricultural technologies is crucial. if
became essential to investigate and forward policy and institution option in encouraging the
determinates of high potato yielding varieties and improved management practices part of
strategies used to meet challenges in low agricultural production and decreasing availability of
agriculturally productive land . However no attempt potato and hence factor favor or limit its
determents process one not yet know in the study area.

1.2 statement problems

Agricultural output of developing countries is characterized by low productivity .which is


difficult to attain food self sufficiency increasing population size and low level of agricultural
production have critical problems in sub Saharan African countries including Ethiopian.
Particularly good heats year partly relay on food aid (FEDER 20014). The food insecurity
situation by widening the gap between dead supplies of food. Which is resulted from increasing
population size valuation of climate access instability of product market In their way the sector
in highly dependent on the rain fall with minimum percent of arable irrigation. Even of the
output from the sector is scat starry.

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A agriculture is the major contribute of food security (FAO.2009). Potato is the important crop in
Ethiopia as measured by number of indicator in 2011/12 if was etiolated that potato up 20%of all
cultivated area in Ethiopia. Covering about 2.7milion hector area and grow by 6.3 million
farmer(onfpr.ang). Potato has importance crop to Ethiopia flamer for several reasons. Namely.
Price of its grain suitable diet on Ethiopia while. The straw provide elutriation filmed for people
(selfu-2017) more over potato play accentual role in Ethiopia food security. Potato accounted for
about 11% of per capital calories in take 2007. Potato is the very important simple food in areas
rural accouter to 30&per capital calories in take 2007 potato grew nattily a both food and cash
crop by most tamer because of its price is often 1 to 2 time. Higher then to natures (waxs
fao.org0. potato farmer operation uses labor it tensile for preparation weeding and harassing.
Hence increasing the production and efficiency in potato production could taken as an important
to attain food security and incensing of the termer (EEA2011). In Ethiopia small holder tamer
were characterized by using traditional flaming fool and practices. Agricultural activity.

In country transported by primitive means this is the reason for the lowest output of agricultural
activity (Getachw olana 2010) potato also produced by small holder farmer which uses
traditional land race of potato that are distributed all over the economics. This is the reason of
potato product on reusing stagnate.(Getahun Dagu 201). In marka Woreda is one of the areas
where agricultural activities has been taking place. The Woreda has suitable climate condition
for the production of potatoes. According to Johnston 2013 study of potato productivity in
maraka Woreda by considering the improved seed, land size and fertilizer as the main
determinant of potato productivity and abebe 2015 study on wheat productivity in loma Woreda
by considering age sex marital status and education as the main determinants of wheat
productivity. Even though some researcher conducted on different variable on the potato
productivity, there is also some other unstudied variable previously on potato productivity, so
this study will tries to fill the gap by conducting that unstudied variable likes family size, income
of households fertilizer, land size due to this fact the address this gap through conducting as
study on this issue. This indicated the researcher to conduct researcher on potato productivity.
They also experience the limited use of improved seed and fertilizer and new technologies from
the researcher experience about the area move farmer who. Produce potato are characterized by
low productive and food insecurity. The author also investigated the factor that determines potato

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productivity. But this study checks. The factor that determine potato production and
other.Hidden factor that determine potato production in the study area.

Research Question

- What are the socio economic factors which affect productivity potato?
- What are the effects of technology on productivity of potato?
- What is the effect of environmental factor that affects the potato productivity in the study
area?

1.3 objective of study


1.3.1 General objective

The general objective of study is to assess the determent of potato productivity in mareka
Woreda.

1.3.2 Specific objective

- To examine the socio economic factor which affect productivity of potato.


- To examine the effects of technology on productivity of potato
- To examine the effects of en vironmental factor that affects the productivity of potato in
the study area.

. 1.6 Scope of the study

Although there are many rural areas that are not studied very well, this study would be delimits
its area of investigation to Dawuro zone specifically in Maraka Woreda. This is because studying
the overall area of potato production requires huge amounts of time and finance.

Moreover, since cash crop production is multi-dimensional and studying all dimensions requires
large time and intensive investigation of each aspect. Therefore, the researcher was studied only
the determinants of potato productivity in the study area. Because of shortage of time, budget,
and other resources, this study was limited to only three kebeles namely: Gasho, Mandida and
Desh kebele.

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1.7 Limitation of the study
The study was generally limited on time constrain to collect and analysis of data, shortage of
finance to collect data, unavailability of previously conducted research work on the topic,
Unwillingness of respondent to give true information, limitations of materials/sources, etc

1.8. Organization of the study


This paper was organized by comprising five chapters. All five chapters contain many sub-
parties relates to the chapter. The first chapter contains an introduction part which encompasses
background of the study, statement of the problem research questions objective of the study,
significance of the study, limitation of the study and lastly organization of the study. Chapter two
will be examines related literature review which indicates theoretical and empirical aspects in
relation to potato productions. Chapter three describes the various methods of data collection,
definition of variables, description of study area, sample size and sample techniques, type and
source of data, model specification and method of data analysis. Chapter four presents results of
the study including descriptive statistics of the variables and econometric model. And the last but
not the least chapter i.e. chapter five will be presents conclusion and recommendation or policy
implicit

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)

CHAPTER TWO

2. RELATED LITERATURE REVIEW

2.1. Basic concept of production and productivity


Production is a process whereby some goods and services called inputs are transformed in to
other goods and services called out puts. The production function refers to the relationships
between the inputs of factor services and the out puts of the resultant product. Regarding the
amount of output production process depends on the amount of input used in the process. Output
depends up on input or set of inputs in such a way that there is one unique relationship between
output and input is termed as production function, or in other sense it is a technical relationship
between inputs and outputs indicating the amount of output that can produced with each and
every set of combination of the specified input (Shiyan. A, 2001)

Farming system in Ethiopia can be classified in to small farming system, modern and small scale
farmers who have been adopting rain fed fixed farming with traditional or back ward
technologies dominate commercial farming system, the agricultural sector (tesfaye, 2006).

Small holders farmers are the backbone of African agriculture and food security of the two third
of sub-Saharan African population that resides in the rural areas that the majority can be
considered as small holder farmers (FAO, 2010) There is no clearly stated definition as to which
constitute as small farm in Ethiopia as the case in many developing countries too. However, it is
well known that small farmers in Ethiopia account for most of the Ethiopian population and food
grain production. In Ethiopia meets the conventional definition of small holder farmers less two
hectares per household. Even for beyond that the small holder are known for their resource

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constraints such as capital input, and technology heavily depends on house hold labor (Yohanis
kebede,2010).

From smallholder farming system crop production is the dominant one. Crop production means
the process of growing and harvesting of own consumption and or sale. Crops are mostly grasses
cultivated for their edible grains or fruit seeds. Crops can be grown under adverse conditions
with at least some yields.

2.2 Theoretical Literature/ Determinants of potato productivity

2.2.1 Government Policies

A Development innovation is a great potential for alleviating to be anti- development .If public
Land reform and social institution militate the active participation of small farmers involving
agrarian structure land. Conditions for the realization of agricultural progress like land reforms,
creating a structure, creating an effective policy, and integrated development objectives are some
of appropriate government economic policies can increase productivity (sarap, 2011).

Land reform is often proposed first condition for agricultural development in many developing
countries. If program land reform can be legislated and effectively implemented by the
government for improved output levels and higher standard of living for rural peasant will be
established. Therefore land structure and land tuner pattern be adapted to the dual objective of
the benefits of agrarian

The benefits of small scale agricultural development cannot be realized unless government
supportive system are created that provides the necessary incentives , economic opportunities
and access to need credit and inputs to enable small cultivators to expand their outputs.

It encompasses the effort to raise both farm and non-rural real income through job creation, rural
industrialization, increased provision of education, health and nutrition, housing and variety of
related social and welfare service. Fertilizer refers to anything that added to soil and intended the

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amount of plant nutrient available for crop growth. There are two types of fertilizers namely
fertilizer which consists of the farm

Yard manure and avoid ashes while the chemical type of DAP(Di-+ammonium phosphate)and
UREA(Ammonium nitrate) Fertilizer specialist on the other hand emphasize on fertilizer as the
major source of growth in agricultural output in general an d crop production in particular.

In most developing countries new agricultural technologies, innovation in farm practice is


precondition for sustained improvement, adaption of appropriate and affordable technology are
not more developed. Essential for sustained long run productivity improvement and agricultural
research is predominantly the means to develop new agricultural replace human labor and
biological innovation and chemical innovation are the major source of technological innovations
that can increase farm yields (Ibid).

It is very varies which gives a significantly higher yield and better quality compared to locally
produced variety of seeds-input contributes to increase agricultural productivity.

Diffusion of the information to the peasants can take many forms through extension work,
training and visit programs, radio, and farmer education on school. Development agents have
great responsibility in transforming information to the farmers. The provision of credit to the
farmers in the form of input such as fertilizers, improved seeds, and technology like tractors
water transfer equipment than in terms of cash to increase farm output is essential(FAO,2010).

Policy Environment is advising force behind programs of extension, agricultural input


utilization, market integration and risk integration. During the period of 1991, ADLI,
Agricultural extension package was introduced the participatory demonstration and extension
training system (PADETS). It had components of using high yield improved seed, fertilizers and
chemicals, credit access and improved farm management practices like line sowing timely
cultivation and timely weeding .potato, grand neat, wheat, Teff, and sorghum, were received
greater attention by the program.

2.2.2 The Physical Environmental factors

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In developed country, agricultural productivity has significantly increased while per portion of
the population in the sector declines. On the other hand economies of the low income
consequently are better to outline factors affecting agricultural output, especially potato
production by using some method of arrangement. Different authors used different classification
scheme of potato output growth determinants. (Nkonya, 2005) divides potato yield growth
determinants in to conventional (land, labor, physical capital and fertilizer) and non-conventional
factors of production which includes private and public agriculture, research education,
infrastructure, government program and policies and environmental degradation (Shinay, 2006).

Millikan and Hap well divided the determinants of potato yield in to many categories. These are
physical input factors, economic factors, organizational factors, cultural and motivation factors
and knowledge factors. Each of which is further divided in to a series of categories. The physical
factor input further divided in to non-human (non labor) physical input and labor physical are
land, seeds, water, fertilizer, pesticides, structure, work, animals, tools and machinery and power
other than animal. Most of farming and livestock rearing practiced in the high land are dependent
on the amount of rain fall. Lack of adequate rain fall, the variability and seasonality of rain fall
affected agricultural output in general and maize production in particular living the country
exposed to commercial food imports and food aids(Ibid).

As population pressure increase particularly in the highlands, farmers intensively exercise


deforestation. This will leave farm lands grazing exposed to erosion followed by massive and
degradation. The increase in the size of rural population coupled with limited area of farming
land in the high lands has led to the fragmentation. As the size of the farm house holds increases,
redistribution of land has continued reducing per capita and side small land holding is less than
one hectare per households.

Irrigation is the most important determinants of agricultural output. Constraints of agricultural


development are amount of water available rather than supply of land. In the and far east, there
are many regions use the available water resource as intensively as possible as long as it is
economic to do so.

2.2.3 The Economic Environmental factors

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The economic environment is the determinants of agricultural productivity particularly potato
production concentrates on the development of other sector of economic. It is intersectional
linkages that beloved to be the major determinants of agricultural growth. The factors include
under economic environment by Millikan and hap well are:

 Transport, storage, processing, and marketing facilities for product


 Facilities for the supply and distribution of input including credit
 Input pricing including interest rate
 Product pricing including price of consumer
 Taxes, subsides and quotas.

Lack of infrastructure is one of critical problems especially in the rural country of Ethiopia. This
hinders agricultural production processes from purchases of input up to marketing production.
The existence of agricultural credit market has a lot impact on the amount of farm output when
farmers cannot afford to finance purchases of improved seeds, fertilizer pesticides and provision
of irrigation facilities etc are the only option to resemble credit.

2.2 Empirical Literature


Money finding was under taken to find out the factor affecting agricultural productivity from
them. study in Borno state of Nigeria using data collated from 1086 sample farmer in
2009,reveal that farm size ,fertilizer, and hired labor were the major factor that determine output
of food crop (amage,Bila,and the nacho 2012).According to their study the effect of land area
fertilizer and hired labor were found to have positive effect on output.

In Ethiopia different finding take place on the determinant of agricultural productivity. The study
done by (Hawarit2010) by using milt regression model on productivity of small holder of farmer.

16
According to his study number of oxen improved seed fertilizer and price of output as factor
affecting productivity of small holders.

Similarly study taken by (Scoty2012) finds the determinants of agricultural productivity in


Ethiopian .Find out land labor physical capital and fertilizer significant factor determining
agricultural productivity.( Lapar 2010) also find age of the house hold and sex of the house hold
to be very significant for determining agricultural productivity.

Even many finding on, market analysis for potato, chain valve of potato take place, but study on
determinants of potato production is not more. According to( Endale 2013) most Ethiopian
farmer use traditional and land race of potato which are distribute all over the country which has
resulted in low productivity of potato than other cash crop.

Potato is cultivated on large hectare of Ethiopia land but its yield is lower among cash crop. This
is due to limited use of improved seed and in efficient agro economic practice. Related to this
according to Saper 2011 local variety give low yield as compared with fertilizer which give
810kg/ha and 1600__2100k/ha respectively (saper 2011).

Even its magnitude is not known saper said that potato productivity defends on good weather
condition and use of appropriate technologies, such like fertilizer, family size and herbicide with
recommended rate and time (saper 2011).(saper 2011)analysis the data of period between
2010/11___2012/13 the volume of production show in an increasing trend with average annual
growth rate of 16.75%.But use of appropriate technologies in minimum compared to the growth
of total potato cultivation area.

CHAPATER THREE

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Methodology of the study

3.1 Description of the study area


The study would be conduct in maraka Woreda which located in the Southern Nation
Nationalities and people of region (SNNPR)in dawuro zone. The area is situated 500km south
west of capital city of Ethiopia (Addis Abeba )and it also 275Km from the capital city of SNNPR
(HAWASA).In generally maraka Woreda is bordered on the south by Gamo Gofa zone on the
north west by loma Woreda on north by Gena Bosa woreda and on east by the Wolayta zone.
The eastern and the southern border of maraka Woreda is marked by omo river. Its annual mean
temperature range between 15.1____27.5oc and the annual mean rain fall range
1201____1800mm.The total population living on this geographical area at present is estimated
about 82553 out of this 61317 are male and 21236 are female, according to the 2007 population
census serve with faster annual growth rate exceeding 3%(DZmw in 2019).62500of its
population are urban dwellers .The majority of its inhabitants were protestants with 65.53% of
population reporting

that belief.32.54%practiced Ethiopian orthodox Christianity and 1.93% where Muslim. In


maraka Woreda large number of people lives in rural area and Agricultural activity is the
primitive of level hood. Almost all farmers in Woreda practiced mixed farming and the main
products are Inset, potato, coffee, wheat, barley, and beans.

3.2_Data sources and Data collection techniques


The data study would be used to collect from both primary and secondary source.

Primary data would be collect from maraka Woreda local farmer and extension workers. To
analyze the determinates of potato productivity, the study would be used primary data which
would be collected through structural questionnaire. The research design survey questionnaire on
specific aspect that provide statistical information on households, demographic decomposition
which data collection includes yield produce per hectare, improved seed and major agricultural
input that respondents will study area.

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Secondary data was gathered from published and unpublished sources official reports from
relevant government office.

3.3_Sampling method Sample size

3.3.1 Sampling method

The study would be used probability sampling technique used to select .which is random
sampling techniques applied to select three kebele from thirty five kebeles in Maraka
woreda.The reason behind selecting only three kebele from thirty five kebeles was that all
kebeles engaged in potato production. Therefore, random sampling techniques should be
applied.

3.3.2__Sampling size

Sampling size in this study is determined based on yaman (1987) since the population is
homogenous in population system. The simplified formula provide bay yam an is used to
determine the required sample size of 10%level of study is specified as

n=N/1+N(e2)

e=0.1=10%

N=5900

n=5900/1+5900(0.1)2=98

Sampling from Gasho kebele 2200/5900×98=37

Sampling from Desh kebele 2000/5900×98=33

Sampling from mendida kebele 1700/5900×98=28

n=37+33+28=98

Based on the formula the total sample size of the study is 98 farmers, the distribution of sample
potato producer farmer across the same kebeles based on proportion of their total size

3.4_Method of data analysis


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The method of data analysis will be using both descriptive and econometric analysis. In the
descriptive analysis of this study includes percentage, mean table would be used. Descriptive
analysis uses in this study because it is important to have clear picture of characteristics of the
sample units and to compare and contrast different categories of sample unit with respective to
the desired characteristics.

In Econometric analysis the ordinary least square (OLS) estimation technique would be used in
the form multiple linear regression model

3.5_Model specification
As mentioned earlier the study is applied econometric tools in order to analysis factor that affect
potato productivity. To analysis the correct of potato production the multiple regression model
would be employed with the dependant variable was the quantitative or continuous variable.

3.5.1_Theoritical frame work model


The dependant variable of this study is quantitative or continuous variable. Estimation of this
types of relationship requires the use of quantitative or continuous model. In this regard OLS of
multiple regression models is one of the most important model which estimates potato
production depends on some explanatory variables. This model is appropriate when the
dependent variable is continuous variable. Because of the fact that ordinary least square multiple
linear registration model is easily to estimate and simple to interpret this regression model is use
in this study.

3.5.2_Emperical model
potato productivity function =(Age Sex Land size family size fertilizer improved seed education
income )

Pit =Bo+B1Age +B2Sex +B3Ls +B4fs +B5fer +B6edu +B7mst +B8yi +ei

Pit_ quantity of potato produced measured by quant ail

Ls_ total land size

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Edu_ house hold level of education

Fs_ Level of family size

Fe_ Chemical fertilizer usage

Yi_ Total income potato in quintal

Ag _ House hold age measures number of year

Sex _ House hold sex measured dummy variables

ei _ error term or the random disturbance term.

3.5.3_Description of variables
Dependent variable _potato productivity =it is continuous variable that represent the total potato
yields produced with in the year measured in kilogram per hectare

Independent variable _

Age _ it is defined as continuous variable measured by the year through the time as number of
year increase farmer increases their productivity.

Sex _ it is dummy variable that taken the value of one, if the house hold is male other wise 0 of
the house hold is female, male house hold would have more probability than female in potato
production .

Land size _ it is continuous variable measured in hectare. This valuable associated with total
amount of cultivation land, includes owned land and rented land measured in hectare. The
variable is expected to have negative effect on agricultural productivity.

Education _ it dummy variable refers to the formal schooling of respondent during the serving
period. The house hold who have formal education they have willingness to harvest more and
aware to use modern commercial productivity. Because when the years of schooling increases,
productivity also increase .therefore, education has appositive contribution on productivity.

21
Family size _ the number of family size living within the house hold. The large the family size
the lower output in production. It has negative relationship with potato production..

Fertilizer_ it is a dummy variable that assumed to (1)the farmer uses fertilizer otherwise (0).It
is total amount chemical fertilizer used in the production of potato output, measured in
kilogram .A farmer use more fertilizer get better output in agricultural crop production. Because
when the amount of fertilizer increases productivity also increase.

Improved seed _ the use of improved seed by farmer is also one contribution to potato
productivity positively, which facilitate the growth and productivity of potato. When the
availability of improved seed increase, productivity of potato also increase.

CHAPTER FOURE

DATA ANALYSIS
4.1 INTRODUCTION

This chapter is concerned with the presentation and analysis of the data collected. It is comprised
of two sections. The first section presents the descriptive analysis which includes demographic
and socio economic profile of respondents and potato productivity variations in the study area
while the second section presents the econometric analysis of the study.

This is the critical part of the study which comprises of the data presentation and interpretation
that helps to provide adequate response for research questions and consequently to realise the
desired objectives of the study. The data were well organized and displayed using tabulation in
descriptive and econometric analysis.

4.1 Descriptive analysis


4.1.1 Demographic and socio economic profile of respondents.

The data was obtained through questionnaires from 98 respondents among them 37 respondents
were from Gasho, 33 respondents from desh, and 28 respondents from mendida Keble’s. This

22
section represents the demographic (sex, age, and marital status of respondents) and the socio
economic (educational attainment, farming experience) profile of respondents.

1 Sex Distribution of respondents.

Table 1 Distribution of respondents by sex

Sex Number of respondent Percentage

Male 81 82.56

Female 17 17.35

Total 98 100

Source: own survey 2010

As shown in the table above, the respondents for this investigation were 98(100%) number of
which 81(82.56%)are males and 17(17.35%) respondents are females. This shows the majority
of the respondents were male.

2 Age structure of the respondents .

Economically active age group population contributes to the development of the country’s
economy (Birhanu and said, 2012). Table 2 below shows the age distribution of respondents in
category.35.7% of the total respondents belongs to the age group between 41- 50.while
5.1%,15.3%,33.7% ,10.2% of the total respondents belongs to the age group less than 30,51-
60,30-40,and greater than 60 respectively.

Age group Frequency Percentage

< 30 5 5.1

30____40 33 33.7

41____50 35 35.7

51____60 15 15.3

23
> 60 10 10.2

Source Own survey 2010

3 Marital status of respondents


Table 3 marital status of respondents.
Marital status Number of respondents percentage

Married 55 56.12

Single 21 21.4

Divorce 13 13.3

windowed 9 9.18

Total 98 100

Source own survey 2010

As indicated in table 3 large number of total respondents are married which accounts for
(56.12%) of the total respondents, (21.4%) of the total respondents are single,(9.18%) of the total
respondents are widowed and (13.3%) are divorced.

4 Education attainment of the sampled respondents .

To transfer technology to multiple directions for sustainable agricultural production,


transformation and marketing to transfer management system in order to mobilize and organize
faming community’s education is considered as vital. The table below illustrates the educational
achievement of sampled respondents.

Table 4 Respondents level of education.

Education level Number of respondents percentage

Illiterate 15 15.3

First cycle 55 56.1

24
Second cycle 28 28.6

Total 98 100

Source _own survey 2010

As in dictated in the above table 4, large number of respondent’s level of education was primary
which accounts to 56.1% of the total respondents, 15.3%and 28.6%of the respondents are
illiterate and secondary education respectively.

5 Farming experience of respondents

Table 5: years in farming experience

Year in farming experience Number of respondents percentage

< 10 51 52.4

10___20 46 46.4

21____30 1 1.2

Total 98 100

Source Own survey 2010

As shown the table 5,large number of respondents are less than 10years of farming experience which
accounts 52.4%of the total respondents ,respondents with experience in farming from 10__20 years
were 46.4%and respondents with farming experience between 21___30 are 1.2%.

5_Level of factors of production and yield of potato

Variable Maximum Minimum

potato output in quintal 86 10

25
Farm size in hectares 5 1

Number of labor 14 1

Fertilizer in kilograms 250 10

Selected seed in kilograms 200 0

From the above table 5 the researcher examines the maximum level output was 86 quintal of
potato produced in 2009 E.C by using maximum level of fertilizer 250kg,14 number of
labors,200kg of selected seed and 5 hectares of land. Conversely the minimum level of output of
potato 10 quintal.

4 .2 Econometrics analysis
In this section the econometric analysis on the determinants of potato productivity presented and
discussed. Cross section data is used to estimate the parameters of the given regression model
and ordinary least square (OLS) estimation method is applied.

Before going to estimate the specified model it is important to undertake different test on
whether the basic assumption of models meet or not.

26
4.2.1 Regression results

Number of orbs = 98

F (9.87): 76.79

Probe> F = 0.0000

R_squared: 0.8882

Adj__squared: 0.8766

Table 7: Regression result.

Variables Coef standard errors t value P>|t|

Sex _2.352667 1.801367 -1.31 0.195

Ls _1.50492 .6982623 _2.16 0.034

Imps _2431948 2.604749 0.09 0.926

Yi 0.068034 -0.002997 22.7 0.000

Fmlysz -1.121618 -3678973 -3.05 0.003

Fritz 5.374743 3.19892 .1.68 0.097

Hhedc -0.254802 1.00634 -0.03 0.980

mar stus -1.776374 1.555005 -1.14 0.256

age 0.282494 0.775855 0.36 0.757

_Con 17.82857 5.092109 3.50 .0.001

27
____________________________________

4.2.2_Regression results interpretation


The regression all coefficient of the variable has attained the expected sign. Thus the estimated
model is specified as follow.

Potato (p) =17.82857+5.5374Fetilizer _1.121618family size +0.0068034 income of households


_1.50492land size.

1 Land size and potato production

The coefficient of land size is found to be significant and negative relationship with potato
productivity... When land size increases in hectares then potato productivity decrease by
1.505quintal.

2 Family size and production of potato

The coefficient of family size was found to be significant at 10%level and showed negative sign.
This means when family size increases by one person, productivity of potato decreases by 1.123
quintal..

3_Fertilizer and production of potato

The coefficient of fertilizer was found to be significantly 10%level of significance and showed
the expected positive sign. This means increase in fertilizer by quintal leads to an increase in
potatoes productivity by 5.54 unit

4_Income of house hold and potato production

According to the regression result shows income of family are affect potato productivity
positively and significant at 10% level. As house of family income increases by one unit, potato
productivity increased by 0.0068 quintal

28
4.2 .3. Diagnostic test

In this section of the inter relationship between the explanatory variables and natures of the
variance of error term were tested.

4.2.4 Test for heteroscedasticity

This type test is used in order to examine the pattern of the error term variance are Constance or
to test the assumption homoscedasticity.Heteroscedasticity is present if variance or error term is
not constant or different variance for different segments of the population or sample
size ..Homoscedasticity is more likely to exist in cross sectional than time series data. To check
this researcher used testing method developed by breushpogal.The decision rule is if the P_value
of the breuspogal test is greater than any of the chosen significance level lie 10% 5% and 1%
which indicates no probable problem of heteroscedasticity.Thus the result indicate that chi2of
65.56% greater than 5% significance level . Therefore the researcher concluded that there is no
problem of heterskedasticity

. hettest

Breusch-Pagan / Cook-Weisberg test for heteroskedasticity

Ho: Constant variance

Variables: fitted values of p

29
Table 8_test for heteroskedasticity

ch2(_) 0.20

prob>chi2 0.6556

Computed by stata 12Source own survey 2010

4.2.5_Test for multcollinearity

Relation for linear relationship between independent variable is called multicollinerty (Gurarati)
tests the existence or non existence of multi collinearty problem variance inflation factor (VIF)
test is employed. The variance inflation factor is measure of reciprocal of compliment of
collations among the predictors VIF =1/1-r2 where r2 is the multiple collations between the
variable and other predictors. Addition rule for multcollinearity test for the model stated is
VIFvalue are greater than 10indicate the existence of sever multi collinerty.As it is stated from
table 4.1.6 there is no VIF value greater than 10.The researcher concludes that there is no
multicollinearity problem because vif is less than 10

. Vif

Variable VIF 1/VIF

30
Fmlysz 1.48 0.675689

Yi 1.47 0.682193

marts| 1.38 0.725152

Hhedcn 1.29 0.777331

Imps 1.19 0.842837

Fritz 1.16 0.864949

LS 1.13 0.885160

Age 1.12 0.889024

Sex 1.08 0.922596

Source, own competition, 2018

Mean VIF | 1.25

Computed stata 11source own survey 2010

4.2.6 Test for normality

Cameron &Trivet’s decomposition of IM-test

/Table 10_Test for Normality

Source chi2 df P

Hetero skedasticity 63.70 44 0.0275

31
Skewness 12.78 9 0.089

Kurtosis 4.36 1 0.068

Total 80.84 54 0.7965

Chapter five

5 Conclusion and Recommendation

5.1 Conclusion

Agriculture is the most important activity and carried throughout the world. It is the mean
economic activity especially in developing countries starting from the very beginning of the
study. Several issues have been rose about the role of potato yield for sustain food security.

The general objective of this study is to identify the major determinants of potato productivity.
In order to achieve the desired agricultural output, the availability of inputs is mandatory .The
researchers employed the ordinary least square (OLS) model to ensure the relationship
between inputs and output.

From the regression result all independent variable ( house hold income, fertilizer, ) are
positively related with crop production. This shows that the increment of use of inputs increase
crop production further to improve food security avoid poverty and improve economic growth
and development in Ethiopia.

Generally the researcher conducted that the socio-economic factors such as off-farm
income(such as trade), family size, livestock holding, credit, inputs (like seeds, fertilizer, and
pesticides), education, and etc are important to expand crop production.

5.2 Recommendation

32
Land size. It is negative impact in production in study area and by personal reconnaissance, the
area easily exposed for soil erosion. So government uses different agricultural and water
conservation practice in that area on future. Generally by simple observation the study area was
easily eroded by rain fall and no forest in the area. So government give attention for the area use
different soil and water conservation practice.

___Family size Is negative impact on production in study area. High population growth is the
intensified the shortage of land. Also land in hectare per households decline. For this reason
productivity of house hold is decline. The government option is increase awareness to society
about familiyplaning and increasing access to medical service.

__Chemical fertilizer is uses have apositiverelation ship with potato productivity. Therefore
government aware the farmers about the quality and quantity of chemical fertilizer used, is better
for the increment of potato productivity.

_As this study implies family income have positive effect and significant at 10% level of
significance on potatoes productivity. This is because of that family with higher income can
increase their productivity through using more quintal of fertilizerthat leads to increase potato
productivity.

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39
APPENDEX

4.2.1 Regression results

Number of orbs = 98

F (9.87): 76.79

Probe> F = 0.0000

R_squared: 0.8882

Adj__squared: 0.8766

Table 7: Regression result.

Variables coef standard errors t value P>|t|

Sex _2.352667 1.801367 -1.31 0.195

Ls _1.50492 .6982623 _2.16 0.034

Imps _2431948 2.604749 0.09 0.926

Yi 0.068034 -0.002997 22.7 0.000

Fmlysz -1.121618 -3678973 -3.05 0.003

Fritz 5.374743 3.19892 .1.68 0.097

Hhedc -0.254802 1.00634 -0.03 0.980

mar stus -1.776374 1.555005 -1.14 0.256

age 0.282494 0.775855 0.36 0.757

40
_Con 17.82857 5.092109 3.50 .0.001

Test for heteroskedasticity

. hettest

Breusch-Pagan / Cook-Weisberg test for heteroskedasticity

Ho: Constant variance

Variables: fitted values of p

Table 8_test for heteroskedasticity

ch2(_) 0.20

prob>chi2 0.6556

41
Computed by stata 12Source own survey 2010

Test for muilticollinrty


Variable VIF 1/VIF

Fmlysz 1.48 0.675689

Yi 1.47 0.682193

marts| 1.38 0.725152

Hhedcn 1.29 0.777331

Imps 1.19 0.842837

Fritz 1.16 0.864949

LS 1.13 0.885160

Age 1.12 0.889024

Sex 1.08 0.922596

Source,own competition,2018

Mean VIF | 1.25

computedstata 11source own survey 2010

Test fore norimality


imtest

Cameron &Trivedi's decomposition of IM-test

/Table 10_Test for Normalty

42
Source chi2 df p

Hetero skedasticity 63.70 44 0.0275

Skewness 12.78 9 0.89

Kurtosis 4.36 1 0.068

Total 80.84 54 0.7965

Arbaminch universty

College of business and economic department.

Department economics

Questionnaire

This questionnaire is prepared by athird year economics student from the college of business and
economics in arbaminch University.The purpose of this questionnair is to collect primary data for
proposed raseach."Determinants of potato productivity in maraka woreda".Thank you in advance for
giving accurate and sufficient information

Inistruction

a.Read the statement carefully

b.Fill the blank on the right hand side or space provided

c.Don't write your name

d.Fill the box by putting "x"and choose the best alternatives where it is provided

1.Sex of household head

Male _______. Female _______.

2.Age of household ___________year

3.Maritas status

43
Married ________ Single _________

Widowed________ Divorced _______

4.The maximum years of school of household head ______(in year )

5.Farming experince ______(in year )

6.Household family size ____(in year)

7.family age stracture

A.0_15_____ b.16_65______ c.above 65

8.Did you produce potato in 2008/9.e.c? a yes____ b.no_____

9What size of land did you plough to produce potato?____(in hectare )

10.How many kuntal of potato did you produce in 2008/9?_________

11.How many labor did you use to produce potato(man/day)______

12.Do you use fertilizer?_____ a.yes ______ b.no______

13.if your aswer for question "12"is yes how many unity of fertilizer is used in kuntal?_________

14if your answer for question"12"is no.what is the main reason?____

a.lack of access ___ b.high price ____ c.lack of awarness ____ d.specify____ e.other

15.What are challeges you face in enhancing your potato productivity?

shortage of rain faill______ b.back ward of technology shortage of input /factor ___

Poor infrastracture ____ other(if any )

16.Do you have income other than farming or off farm income?

yes_____ no______

17.if your aswer is for question "16"is yes what is your other source of income?___________

18.How much killogram of your potato you provid for market?_____

19.what was the price you obtain killogram?________

20.Did you have access to farm credit?________ yes___ no_____

21.Did you accessed extention service?___ yes____ no____

44
22How often______________________

45

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