Assistant Professor of Economic, PhD Fellow @ University of Antwerp, Researcher and Advisor @ Jimma University, Ethiopia Phone: +251910209644 Address: Jimma Jimma University
Haricot bean is one of the most important food legumes of Ethiopia and it is considered as the ma... more Haricot bean is one of the most important food legumes of Ethiopia and it is considered as the main cash crop and the least expensive source of protein for the farmers. Low production and productivity, which are mainly associated with poor adoption and inefficient implementation of improved farm technologies, were among the major problems. Adoption and efficient utilization of improved farm inputs is one of the most promising ways to reduce food insecurity in study area. However, the adoption and implementation of these improved farm inputs is constrained by various factors. So, the aim of this study was to analyze the technical efficiency and impact of improved farm inputs adoption on the yield of haricot bean producers. A multi-stage sampling technique was employed to select 231 sample household heads and they were interviewed using structured interview schedule. Data analysis was done with the help of Stochastic Frontier Analysis; mainly Cobb-Douglas Production Function, logistic regression model were employed. The Stochastic Production Frontier result revealed that the allocated amount of land, labour, seed, chemical fertilizer and oxen were appeared to be positively and significantly influencing haricot bean production of both adopters and total sampled ABOUT THE AUTHOR Mr. Tamirat Beyene (Msc in Economic policy analysis) is a full time lecturer at Wolkite University for the last three years and yet now. Dr. Wondaferahu Mulugeta (PhD, Associate professor of Economics) is a full time professor at college of business and economics, Jimma University, Ethiopia. He has more than 10 years of teaching experience in total. His areas of research interest are macro issues like impact of monetary and fiscal policies analysis, on exchange rate instabilities etc. Mr. Tesfaye Melaku (Assistant professor of Economics, Msc in Economics) has worked more than 7 years at college of Business and Economics, Jimma University, Ethiopia. His research interests are program impact analysis, microfinance, poverty, and adoption of improved farm inputs. Further, Mr Tesfaye Melaku is a full member of Ethiopian economic association.
Journal of Economics and Sustainable Development, 2020
This research investigates the determinants of national saving in Ethiopia over the period 1984-2... more This research investigates the determinants of national saving in Ethiopia over the period 1984-2014. The main objective of the study is to identify the major factors that determine national saving in Ethiopia. The ordinary least square estimation method is used to arrive at the results of the study. The result of the long run and short run models revealed that Real Gross Domestic product, investment, consumption and inflation have shown similar relationship in both models. Real Gross Demotic product is the only factor which affects national saving significantly and positively. Other factors, which positively affect national saving, are not much significant. Example, investment, consumption and inflation are factors which affects national saving both positively and in significantly in the end.
Inflation is defined as a persistent increase in general price level of goods and services . Even... more Inflation is defined as a persistent increase in general price level of goods and services . Even though Ethiopia has experienced a low inflation until 2008, recently, double digit inflation has become troublesome for policy makers as well as the society. So, this study tried to examine the supply and demand side determinant of inflation in Ethiopia by employing the techniques of Auto-Regressive Distributed Lag Model (ARDL) for 32 years’ data spanning from 1985 to 2016. The study included macroeconomic determinant that alter or change inflation level measured by consumer price index such as money supply, real gross domestic product, world oil price, budget deficit and real effective exchange rate. The results of bound test confirmed that the long run relationship between explanatory variables and consumer price index in Ethiopia. The empirical results implied evidence of a long-run positive impact of money supply, world oil price, budget deficit and real effective exchange rate on ...
Empirical investigation on the comparative potency of monetary and fiscal policies is still dubio... more Empirical investigation on the comparative potency of monetary and fiscal policies is still dubious among two major schools of thought in economics so called classical and Keynesian. Hence, this paper investigates the relative effectiveness of monetary and fiscal policies in affecting economic growth by employing Auto-Regressive Distributive Lag Model (ARDL) for the time spanning from 1975 to 2017. The proxies used in this study for monetary and fiscal policy were Broad money supply (M2) and govern-Tekilu Tadesse, Tesfaye Melaku 90 ment consumption expenditure respectively while real GDP at constant prices in 2010 is used as proxy for economic growth in Ethiopia. Anderson and Jordan (1968) "St. Louis equation'' has been used to estimate the comparative potency of monetary and fiscal policies. The empirical results indicate that both the monetary and fiscal policies have equal statistically significant and positive impact on economic growth in Ethiopia with different significance level and magnitude. Besides of equal effectiveness, the elasticity of real output with respect to fiscal policy variable is greater than the elasticity with respect to money supply which show fiscal policy is more effective than monetary policy in influencing Real GDP in the long-run. However, in the short run, the fiscal policy is effective while that of the monetary policy proxy by money supply is ineffective in affecting output growth in Ethiopia. Therefore, to have continuous and sustainable economic growth, the coordination of monetary and fiscal policies are vital and the lack of this coordination leads to a sharp downturn of overall economic performance, even can hurt the economy.
International Journal of Commerce and Finance, 2019
Inflation is defined as a persistent increase in general price level of goods and services. Even ... more Inflation is defined as a persistent increase in general price level of goods and services. Even though Ethiopia has experienced a low inflation until 2008, recently, double digit inflation has become troublesome for policy makers as well as the society. So, this study tried to examine the supply and demand side determinant of inflation in Ethiopia by employing the techniques of Auto-Regressive Distributed Lag Model (ARDL) for 32 years' data spanning from 1985 to 2016. The study included macroeconomic determinant that alter or change inflation level measured by consumer price index such as money supply, real gross domestic product, world oil price, budget deficit and real effective exchange rate. The results of bound test confirmed that the long run relationship between explanatory variables and consumer price index in Ethiopia. The empirical results implied evidence of a long-run positive impact of money supply, world oil price, budget deficit and real effective exchange rate o...
Inflation is defined as a persistent increase in general price level of goods and services . Even... more Inflation is defined as a persistent increase in general price level of goods and services . Even though Ethiopia has experienced a low inflation until 2008, recently, double digit inflation has become troublesome for policy makers as well as the society. So, this study tried to examine the supply and demand side determinant of inflation in Ethiopia by employing the techniques of Auto-Regressive Distributed Lag Model (ARDL) for 32 years’ data spanning from 1985 to 2016. The study included macroeconomic determinant that alter or change inflation level measured by consumer price index such as money supply, real gross domestic product, world oil price, budget deficit and real effective exchange rate. The results of bound test confirmed that the long run relationship between explanatory variables and consumer price index in Ethiopia. The empirical results implied evidence of a long-run positive impact of money supply, world oil price, budget deficit and real effective exchange rate on ...
This research was designed to assess willingness, ability, motive, preference and determinants of... more This research was designed to assess willingness, ability, motive, preference and determinants of smallholder major grain farmer’s transition dilemma to light manufacturing industry in Jimma Zone, Oromia Region, Ethiopia. The participants of the study were selected using two stage non probabilistic, purposive sampling. Then, we prepared sample frame from each Kebeles fall in our selection pool. Finally, 399 household heads (farmers) were selected for this study, using stratified sampling. Then, primary data collected via structured questionnaire was analyzed descriptively and in binary logistic regression. Accordingly, majority of smallholder major grain farmers need to stay on their current crop farming. Increasing these products productivity and price is one possible means of intervention to improve the areas smallholder farmer’s livelihood. The descriptive statistics depicts that, small holder farmers’ transitional dilemma to light manufacturing sector and the fate of industriali...
In a subsistence agriculture and low income developing countries, microfinance provision to rural... more In a subsistence agriculture and low income developing countries, microfinance provision to rural areas is taken as a mechanism to reduce poverty and to empower women economically. MFI have made important contributions to poor people particularly to women, by providing a financial service to those who are excluded from the formal financial sector. The study aims to assess the impact of microfinance on women economic empowerment with a case study of Omo Microfinance Institution in Gimbo woreda. By using multi-stage sampling method, the primary data was collected from a total of 200 rural women of which 115 of them are non-clients of Omo Microfinance Institution, which are used as control group. The control groups are future clients that are very similar to clients in their overall characteristics. The empirical analysis of this research was carried out both by descriptive statistics and regression analysis. The regression analysis part was used propensity score matching method of ana...
A Thesis Submitted to The Department of Accounting and Finance Presented in Partial Fulfillment o... more A Thesis Submitted to The Department of Accounting and Finance Presented in Partial Fulfillment of the Requirements for the Degree of Master of Science in Accounting and Finance
Jurnal Perspektif Pembiayaan dan Pembangunan Daerah
Nowadays, studies argued that international difference in prosperity across a country is the matt... more Nowadays, studies argued that international difference in prosperity across a country is the matter institutional quality. Thus, the poor economic performance of African’s is linked to their weak institutional quality. The aim of this study is to examine the extent to which institutional quality affect economic performance of 14 selected East African Countries; Burundi, Comoros, Djibouti, Ethiopia, Kenya, Madagascar, Malawi, Mozambique, Mauritius, Rwanda, Tanzania, Uganda, Zambia and Zimbabwe, over the period 2005-2016, using fixed effect and System GMM methods. The finding of this study confirms with the existing empirical study that economic institutions matter for economic performance among which control of corruption and government effectiveness has positive impact on economic performance, while rule of law has adverse impact. The finding of this study implies that that Eastern Africa with better institutions has a higher economic performance. Therefore, the Eastern Africa count...
Increasing market participation among smallholder farmers have a big potential to uplift living s... more Increasing market participation among smallholder farmers have a big potential to uplift living standards of poor through increasing production and consumption pattern. Although, smallholder farming made 95% of total crop production in Ethiopia, they are exposed to a marketing bottleneck that hinders benefits from their produce. The objective of this study was analyzing factors determining smallholder Teff farmer decision to participate in output market and level of marketed output.The study used data from 190 respondents from four selected Teff dominant kebeles of Gena-Bossa districts in Dawro Zone, through structured questioner. This investigation was imperative because no adequate research has been done in study area in examining the hindering factors of farmers’ market participation. Moreover, in the prior study, different authors come up with varied outcomes in diverse country and geographic location concerning poor farmers’ market participation decision. The descri...
Jurnal Perspektif Pembiayaan dan Pembangunan Daerah
Nowadays, studies argued that international difference in prosperity across a country is the matt... more Nowadays, studies argued that international difference in prosperity across a country is the matter institutional quality. Thus, the poor economic performance of African’s is linked to their weak institutional quality. The aim of this study is to examine the extent to which institutional quality affect economic performance of 14 selected East African Countries; Burundi, Comoros, Djibouti, Ethiopia, Kenya, Madagascar, Malawi, Mozambique, Mauritius, Rwanda, Tanzania, Uganda, Zambia and Zimbabwe, over the period 2005-2016, using fixed effect and System GMM methods. The finding of this study confirms with the existing empirical study that economic institutions matter for economic performance among which control of corruption and government effectiveness has positive impact on economic performance, while rule of law has adverse impact. The finding of this study implies that that Eastern Africa with better institutions has a higher economic performance. Therefore, the Eastern Africa count...
Increasing market participation among smallholder farmers have a big potential to uplift living s... more Increasing market participation among smallholder farmers have a big potential to uplift living standards of poor through increasing production and consumption pattern. Although, smallholder farming made 95% of total crop production in Ethiopia, they are exposed to a marketing bottleneck that hinders benefits from their produce. The objective of this study was analyzing factors determining smallholder Teff farmer decision to participate in output market and level of marketed output.The study used data from 190 respondents from four selected Teff dominant kebeles of Gena-Bossa districts in Dawro Zone, through structured questioner. This investigation was imperative because no adequate research has been done in study area in examining the hindering factors of farmers’ market participation. Moreover, in the prior study, different authors come up with varied outcomes in diverse country and geographic location concerning poor farmers’ market participation decision. The descri...
This research was designed to assess willingness, ability, motive, preference and determinants of... more This research was designed to assess willingness, ability, motive, preference and determinants of smallholder major grain farmer's transition dilemma to light manufacturing industry in Jimma Zone, Oromia Region, Ethiopia. The participants of the study were selected using two stage non probabilistic, purposive sampling. Then, we prepared sample frame from each Kebeles fall in our selection pool. Finally, 399 household heads (farmers) were selected for this study, using stratified sampling. Then, primary data collected via structured questionnaire was analyzed descriptively and in binary logistic regression. Accordingly, majority of smallholder major grain farmers need to stay on their current crop farming. Increasing these products productivity and price is one possible means of intervention to improve the areas smallholder farmer's livelihood. The descriptive statistics depicts that, small holder farmers' transitional dilemma to light manufacturing sector and the fate of industrialization plan in Jimma zone is at its infant stage and those small holder farmers have almost no any awareness, no know how about technologies, not trained and they have no entrepreneurial skill. The result revels that the major determinants of smallholder grain farmers sectorial transition plan in the study area was significantly affected by age, sex, marital status, skilled labour access, access to credit, price product expectation, place,Awareness, Education level, Entrepreneur skill, Training, Transport and Energy.Hence, effort should be geared in manner that build farmers capacity through adult literacy program, formal education and with short term training.
Haricot bean is one of the most important food legumes of Ethiopia and it is considered as the ma... more Haricot bean is one of the most important food legumes of Ethiopia and it is considered as the main cash crop and the least expensive source of protein for the farmers. Low production and productivity, which are mainly associated with poor adoption and inefficient implementation of improved farm technologies, were among the major problems. Adoption and efficient utilization of improved farm inputs is one of the most promising ways to reduce food insecurity in study area. However, the adoption and implementation of these improved farm inputs is constrained by various factors. So, the aim of this study was to analyze the technical efficiency and impact of improved farm inputs adoption on the yield of haricot bean producers. A multi-stage sampling technique was employed to select 231 sample household heads and they were interviewed using structured interview schedule. Data analysis was done with the help of Stochastic Frontier Analysis; mainly Cobb-Douglas Production Function, logistic regression model were employed. The Stochastic Production Frontier result revealed that the allocated amount of land, labour, seed, chemical fertilizer and oxen were appeared to be positively and significantly influencing haricot bean production of both adopters and total sampled ABOUT THE AUTHOR Mr. Tamirat Beyene (Msc in Economic policy analysis) is a full time lecturer at Wolkite University for the last three years and yet now. Dr. Wondaferahu Mulugeta (PhD, Associate professor of Economics) is a full time professor at college of business and economics, Jimma University, Ethiopia. He has more than 10 years of teaching experience in total. His areas of research interest are macro issues like impact of monetary and fiscal policies analysis, on exchange rate instabilities etc. Mr. Tesfaye Melaku (Assistant professor of Economics, Msc in Economics) has worked more than 7 years at college of Business and Economics, Jimma University, Ethiopia. His research interests are program impact analysis, microfinance, poverty, and adoption of improved farm inputs. Further, Mr Tesfaye Melaku is a full member of Ethiopian economic association.
Journal of Economics and Sustainable Development, 2020
This research investigates the determinants of national saving in Ethiopia over the period 1984-2... more This research investigates the determinants of national saving in Ethiopia over the period 1984-2014. The main objective of the study is to identify the major factors that determine national saving in Ethiopia. The ordinary least square estimation method is used to arrive at the results of the study. The result of the long run and short run models revealed that Real Gross Domestic product, investment, consumption and inflation have shown similar relationship in both models. Real Gross Demotic product is the only factor which affects national saving significantly and positively. Other factors, which positively affect national saving, are not much significant. Example, investment, consumption and inflation are factors which affects national saving both positively and in significantly in the end.
Inflation is defined as a persistent increase in general price level of goods and services . Even... more Inflation is defined as a persistent increase in general price level of goods and services . Even though Ethiopia has experienced a low inflation until 2008, recently, double digit inflation has become troublesome for policy makers as well as the society. So, this study tried to examine the supply and demand side determinant of inflation in Ethiopia by employing the techniques of Auto-Regressive Distributed Lag Model (ARDL) for 32 years’ data spanning from 1985 to 2016. The study included macroeconomic determinant that alter or change inflation level measured by consumer price index such as money supply, real gross domestic product, world oil price, budget deficit and real effective exchange rate. The results of bound test confirmed that the long run relationship between explanatory variables and consumer price index in Ethiopia. The empirical results implied evidence of a long-run positive impact of money supply, world oil price, budget deficit and real effective exchange rate on ...
Empirical investigation on the comparative potency of monetary and fiscal policies is still dubio... more Empirical investigation on the comparative potency of monetary and fiscal policies is still dubious among two major schools of thought in economics so called classical and Keynesian. Hence, this paper investigates the relative effectiveness of monetary and fiscal policies in affecting economic growth by employing Auto-Regressive Distributive Lag Model (ARDL) for the time spanning from 1975 to 2017. The proxies used in this study for monetary and fiscal policy were Broad money supply (M2) and govern-Tekilu Tadesse, Tesfaye Melaku 90 ment consumption expenditure respectively while real GDP at constant prices in 2010 is used as proxy for economic growth in Ethiopia. Anderson and Jordan (1968) "St. Louis equation'' has been used to estimate the comparative potency of monetary and fiscal policies. The empirical results indicate that both the monetary and fiscal policies have equal statistically significant and positive impact on economic growth in Ethiopia with different significance level and magnitude. Besides of equal effectiveness, the elasticity of real output with respect to fiscal policy variable is greater than the elasticity with respect to money supply which show fiscal policy is more effective than monetary policy in influencing Real GDP in the long-run. However, in the short run, the fiscal policy is effective while that of the monetary policy proxy by money supply is ineffective in affecting output growth in Ethiopia. Therefore, to have continuous and sustainable economic growth, the coordination of monetary and fiscal policies are vital and the lack of this coordination leads to a sharp downturn of overall economic performance, even can hurt the economy.
International Journal of Commerce and Finance, 2019
Inflation is defined as a persistent increase in general price level of goods and services. Even ... more Inflation is defined as a persistent increase in general price level of goods and services. Even though Ethiopia has experienced a low inflation until 2008, recently, double digit inflation has become troublesome for policy makers as well as the society. So, this study tried to examine the supply and demand side determinant of inflation in Ethiopia by employing the techniques of Auto-Regressive Distributed Lag Model (ARDL) for 32 years' data spanning from 1985 to 2016. The study included macroeconomic determinant that alter or change inflation level measured by consumer price index such as money supply, real gross domestic product, world oil price, budget deficit and real effective exchange rate. The results of bound test confirmed that the long run relationship between explanatory variables and consumer price index in Ethiopia. The empirical results implied evidence of a long-run positive impact of money supply, world oil price, budget deficit and real effective exchange rate o...
Inflation is defined as a persistent increase in general price level of goods and services . Even... more Inflation is defined as a persistent increase in general price level of goods and services . Even though Ethiopia has experienced a low inflation until 2008, recently, double digit inflation has become troublesome for policy makers as well as the society. So, this study tried to examine the supply and demand side determinant of inflation in Ethiopia by employing the techniques of Auto-Regressive Distributed Lag Model (ARDL) for 32 years’ data spanning from 1985 to 2016. The study included macroeconomic determinant that alter or change inflation level measured by consumer price index such as money supply, real gross domestic product, world oil price, budget deficit and real effective exchange rate. The results of bound test confirmed that the long run relationship between explanatory variables and consumer price index in Ethiopia. The empirical results implied evidence of a long-run positive impact of money supply, world oil price, budget deficit and real effective exchange rate on ...
This research was designed to assess willingness, ability, motive, preference and determinants of... more This research was designed to assess willingness, ability, motive, preference and determinants of smallholder major grain farmer’s transition dilemma to light manufacturing industry in Jimma Zone, Oromia Region, Ethiopia. The participants of the study were selected using two stage non probabilistic, purposive sampling. Then, we prepared sample frame from each Kebeles fall in our selection pool. Finally, 399 household heads (farmers) were selected for this study, using stratified sampling. Then, primary data collected via structured questionnaire was analyzed descriptively and in binary logistic regression. Accordingly, majority of smallholder major grain farmers need to stay on their current crop farming. Increasing these products productivity and price is one possible means of intervention to improve the areas smallholder farmer’s livelihood. The descriptive statistics depicts that, small holder farmers’ transitional dilemma to light manufacturing sector and the fate of industriali...
In a subsistence agriculture and low income developing countries, microfinance provision to rural... more In a subsistence agriculture and low income developing countries, microfinance provision to rural areas is taken as a mechanism to reduce poverty and to empower women economically. MFI have made important contributions to poor people particularly to women, by providing a financial service to those who are excluded from the formal financial sector. The study aims to assess the impact of microfinance on women economic empowerment with a case study of Omo Microfinance Institution in Gimbo woreda. By using multi-stage sampling method, the primary data was collected from a total of 200 rural women of which 115 of them are non-clients of Omo Microfinance Institution, which are used as control group. The control groups are future clients that are very similar to clients in their overall characteristics. The empirical analysis of this research was carried out both by descriptive statistics and regression analysis. The regression analysis part was used propensity score matching method of ana...
A Thesis Submitted to The Department of Accounting and Finance Presented in Partial Fulfillment o... more A Thesis Submitted to The Department of Accounting and Finance Presented in Partial Fulfillment of the Requirements for the Degree of Master of Science in Accounting and Finance
Jurnal Perspektif Pembiayaan dan Pembangunan Daerah
Nowadays, studies argued that international difference in prosperity across a country is the matt... more Nowadays, studies argued that international difference in prosperity across a country is the matter institutional quality. Thus, the poor economic performance of African’s is linked to their weak institutional quality. The aim of this study is to examine the extent to which institutional quality affect economic performance of 14 selected East African Countries; Burundi, Comoros, Djibouti, Ethiopia, Kenya, Madagascar, Malawi, Mozambique, Mauritius, Rwanda, Tanzania, Uganda, Zambia and Zimbabwe, over the period 2005-2016, using fixed effect and System GMM methods. The finding of this study confirms with the existing empirical study that economic institutions matter for economic performance among which control of corruption and government effectiveness has positive impact on economic performance, while rule of law has adverse impact. The finding of this study implies that that Eastern Africa with better institutions has a higher economic performance. Therefore, the Eastern Africa count...
Increasing market participation among smallholder farmers have a big potential to uplift living s... more Increasing market participation among smallholder farmers have a big potential to uplift living standards of poor through increasing production and consumption pattern. Although, smallholder farming made 95% of total crop production in Ethiopia, they are exposed to a marketing bottleneck that hinders benefits from their produce. The objective of this study was analyzing factors determining smallholder Teff farmer decision to participate in output market and level of marketed output.The study used data from 190 respondents from four selected Teff dominant kebeles of Gena-Bossa districts in Dawro Zone, through structured questioner. This investigation was imperative because no adequate research has been done in study area in examining the hindering factors of farmers’ market participation. Moreover, in the prior study, different authors come up with varied outcomes in diverse country and geographic location concerning poor farmers’ market participation decision. The descri...
Jurnal Perspektif Pembiayaan dan Pembangunan Daerah
Nowadays, studies argued that international difference in prosperity across a country is the matt... more Nowadays, studies argued that international difference in prosperity across a country is the matter institutional quality. Thus, the poor economic performance of African’s is linked to their weak institutional quality. The aim of this study is to examine the extent to which institutional quality affect economic performance of 14 selected East African Countries; Burundi, Comoros, Djibouti, Ethiopia, Kenya, Madagascar, Malawi, Mozambique, Mauritius, Rwanda, Tanzania, Uganda, Zambia and Zimbabwe, over the period 2005-2016, using fixed effect and System GMM methods. The finding of this study confirms with the existing empirical study that economic institutions matter for economic performance among which control of corruption and government effectiveness has positive impact on economic performance, while rule of law has adverse impact. The finding of this study implies that that Eastern Africa with better institutions has a higher economic performance. Therefore, the Eastern Africa count...
Increasing market participation among smallholder farmers have a big potential to uplift living s... more Increasing market participation among smallholder farmers have a big potential to uplift living standards of poor through increasing production and consumption pattern. Although, smallholder farming made 95% of total crop production in Ethiopia, they are exposed to a marketing bottleneck that hinders benefits from their produce. The objective of this study was analyzing factors determining smallholder Teff farmer decision to participate in output market and level of marketed output.The study used data from 190 respondents from four selected Teff dominant kebeles of Gena-Bossa districts in Dawro Zone, through structured questioner. This investigation was imperative because no adequate research has been done in study area in examining the hindering factors of farmers’ market participation. Moreover, in the prior study, different authors come up with varied outcomes in diverse country and geographic location concerning poor farmers’ market participation decision. The descri...
This research was designed to assess willingness, ability, motive, preference and determinants of... more This research was designed to assess willingness, ability, motive, preference and determinants of smallholder major grain farmer's transition dilemma to light manufacturing industry in Jimma Zone, Oromia Region, Ethiopia. The participants of the study were selected using two stage non probabilistic, purposive sampling. Then, we prepared sample frame from each Kebeles fall in our selection pool. Finally, 399 household heads (farmers) were selected for this study, using stratified sampling. Then, primary data collected via structured questionnaire was analyzed descriptively and in binary logistic regression. Accordingly, majority of smallholder major grain farmers need to stay on their current crop farming. Increasing these products productivity and price is one possible means of intervention to improve the areas smallholder farmer's livelihood. The descriptive statistics depicts that, small holder farmers' transitional dilemma to light manufacturing sector and the fate of industrialization plan in Jimma zone is at its infant stage and those small holder farmers have almost no any awareness, no know how about technologies, not trained and they have no entrepreneurial skill. The result revels that the major determinants of smallholder grain farmers sectorial transition plan in the study area was significantly affected by age, sex, marital status, skilled labour access, access to credit, price product expectation, place,Awareness, Education level, Entrepreneur skill, Training, Transport and Energy.Hence, effort should be geared in manner that build farmers capacity through adult literacy program, formal education and with short term training.
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