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The impact of conservation tillage on maize yield and input demand: the case of smallholder farmers in north‐west Ethiopia
Authors:Yohannis Mulu Tessema  John Asafu‐Adjaye  Bekele Shiferaw
Affiliation:1. Water and Land Resource Center, Addis Ababa University, Ethiopia;2. School of Economics, University of Queensland, Australia;3. Independent Evaluation Group, the World Bank, USA
Abstract:This study analyses the economics of conservation tillage (CT) with respect to its effect on maize yield and chemical fertiliser, herbicide, and female and male labour demand. We estimate production and input demand functions using seemingly unrelated regressions on plot‐level cross‐sectional farm household data collected in the north‐west of Ethiopia. A two‐step control function is applied to address potential endogeneity bias due to the inclusion of the CT adoption decision as an explanatory variable. Our results show that CT increases maize yield and chemical fertiliser demand. Additionally, the results show that the adoption of CT reduces female and male labour required for crop production. However, this is achieved through the increased use of herbicides, which might have an undesirable health and environmental effects.
Keywords:conservation tillage  input demand  maize yield  seemingly unrelated regression
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