An Analysis of Resource Allocation on a Household farm Economy: Cases from Chilalo Province, Ethiopia

Abstract

This paper focuses on the problem of productivity in Ethiopia's agriculture. as it results in IQw agricultural and food pro· duction and consequently in low farm income and rural poverty. Based on the hypothesis that agricultural productivity in the small farm sector can be increased by optimal allocation of traditional resources as well as the introduction of improved farm technology, tbe paper discusses results of sensitivity analysis from empirical linear programming models based on data from bousehold farms in Chilalo province. The paper is not intended to make any specific recommendations and proposals on the strategy and direction of agricultural development in Ethiopia but to stimulate discussions and suggest a framework for future studies and
analyses