Conference name, dates, place

2007 International Conference on Ethiopian Development Studies (4th ICEDS) A Multidisciplinary Conference on the Challenges of Peace and Development in Ethiopia & the Horn of Africa, held in Kalamazoo, Michigan (WMU), August 2-4, 2007

Document Type


Presentation Date



We used household survey data from the rural Ethiopia to investigate the importance of governance for agricultural productivity. We argued that the impact of governance is household specific and identified some governance indicators accordingly. Trust in government and government officials, strength of property rights and personal contact with local authorities are identified as governance indicators. A stochastic frontier production function is specified and estimated to capture the effects of governance on productivity or technical efficiency of households. Our results show that improvement in governance could reduce technical inefficiencies significantly and hence could considerably boost productivity.