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The study applied OLS estimation technique on a log-linear production function using time series data from 1979 to 2010. By implementing general to specific modeling strategy and error correction model; the study found out that, physical capital and land size have positive impact on current production and negative impact on the production five years later. Labor has a negative impact on current production and positive impact on the production five years later. Fertilizer has positive impact on the production performance of the industry. All the coefficients are statistically significant at 5%…mehr

Produktbeschreibung
The study applied OLS estimation technique on a log-linear production function using time series data from 1979 to 2010. By implementing general to specific modeling strategy and error correction model; the study found out that, physical capital and land size have positive impact on current production and negative impact on the production five years later. Labor has a negative impact on current production and positive impact on the production five years later. Fertilizer has positive impact on the production performance of the industry. All the coefficients are statistically significant at 5% level of significance except physical capital which is insignificant in the short run error correction model. The variables inflation and rain are found to have no impact on the production performance and are dropped out of the model through the general to specific model specification strategy.
Autorenporträt
I was born in 1980 in Meki, about 334 Kms. to the south of Finfinne, the capital city of Ethiopia. I graduated in BA in Economics from Mekelle University in 2004. I graduated in MSc in Development Economics from Adama University in 2011. Starting from 2005 I am an academic staff of Economics department in Jimma University.