Contract relation and impact of sesame contract farming in Ethiopia

Name: Minyleshewa, Mekdelawit Yeshitila

LCSH: Kasetsart University -- Dissertations. Ph.D. (Agricultural and Resource Economics) 2020

Classification :.LCCS: HD2124.5

LCSH: Kasetsart University. -- Department of Agricultural and Resource Economics -- Dissertations

LCSH: Agricultural contracts -- Ethiopia

LCSH: Sesame -- Ethiopia

LCSH: Contract farming

Abstract: Though sesame is one of the essential oilseed crops in Ethiopia, its productivity is far below the international average level. Therefore, contract farming is one of the strategies used to improve production efficiency. Hence, this study investigates the impact of CF on production efficiency using cross-sectional data from 122 CF and 261 non-CF sesame farmers in Ethiopia. A data envelopment analysis is used to estimate the efficiency score. The impact of CF on technical, allocative, and economic efficiency was assessed using propensity score matching. A Rosenbaum bound approach was used to see to what extent the PSM results is sensitive to hidden bias problem. The PSM results revealed that contract farming increases technical efficiency by 11% and economic efficiency by 8.7%. AE is increased by 8% due to CF. The study also assesses the coexistence of relational and formal contracts in the absence of legal enforcement to reduce side selling. A structural equation modeling was used to analyze the relationship between the attributes of relational contracts and transaction cost economics and their effect on reducing side selling. Based on the result, while asset specificity, satisfaction, communication, and commitment reduce side selling, uncertainty encouraged it. The result also indicates trust reduces side selling significantly. Therefore, both farms and the firm need to foster trust to have a sustainable relationship. Alongside trust, it is better to execute contract legislation to circumvent uncertainty.

Kasetsart University. Office of the University Library

Address: Bangkok

Email: tdckulib@ku.ac.th

Name: Isriya Buniyasiri

Role: Thesis Advisor

Name: Prapinwadee Sirisupluxana

Role: Thesis CO-Advisor

Name: Auttapol Suebpongsakorn

Role: Thesis CO-Advisor

Created: 2020

Modified: 2025-07-11

Issued: 2025-07-11

วิทยานิพนธ์/Thesis

application/pdf

URL: https://www.lib.ku.ac.th/KUthesis/2563/mekdelawit-yes-all.pdf

CallNumber: HD2124.5 .M56

eng

Spatial: Ethiopia.

Spatial: Ethiopia.

DegreeName: Doctor of Philosophy

Level: Doctoral Degraee

Descipline: Agricultural and Resource Economics

Grantor: Kasetsart University

©copyrights Kasetsart University

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