This section deals with results of truncated regression model estimating the determinants of intensity of teff commercialization that was measured in the ratio of teff sold to teff produced expressed as percentage.
Here all farm households who were participated in teff market as sellers are considered since the objective was to identify what factors determine a household to sell more or less proportion of their teff product.
The model was statistically significant at 1% level indicating the goodness of fit of the model to explain the relationships of the hypothesized variables in terms of at least one explanatory variable. The model result also indicates that, out of the independent variables used in the analysis six variables were found to …show more content…
The coefficient of the model showed that when the household size increase by one person, the proportion of teff sale decreased by 1.96%. The negative sign indicated that, the higher the number of household member, the less proportion of teff output sold because, large household size requires large quantity of product. The result is similar with what has been reported by Aman et al. (2014), Efa et al. (2016) and Yallew (2016). They explained that, large household size decreases marketed surplus of output product since it increases quantity of product needed for home consumption. On the contrary, the result of Benjamin et al. (2014) and Olanrewaju et al. (2016) showed the positive impact of household size for intensity of crop commercialization. Benjamin et al explained that household head with larger household size are less likely to participate in market but they sell more of their product when they participate. But Olanrewaju et al. simply put the positive association between household size and intensity of …show more content…
As expected, allocation of additional hectare of land for teff production had a positive and significant impact on proportion of teff sold by farmers at 1% level of significance. The positive coefficient of the model reveals that, an additional hectare of land households allocate for teff production would increase the ratio of teff output sold by 16.5%. This indicates, land is a critical asset in crop production and hence in crop commercialization. The more land allocated for teff can increases the production of teff obtained which in turn enable farmers to have high quantity of teff available for
Here all farm households who were participated in teff market as sellers are considered since the objective was to identify what factors determine a household to sell more or less proportion of their teff product.
The model was statistically significant at 1% level indicating the goodness of fit of the model to explain the relationships of the hypothesized variables in terms of at least one explanatory variable. The model result also indicates that, out of the independent variables used in the analysis six variables were found to …show more content…
The coefficient of the model showed that when the household size increase by one person, the proportion of teff sale decreased by 1.96%. The negative sign indicated that, the higher the number of household member, the less proportion of teff output sold because, large household size requires large quantity of product. The result is similar with what has been reported by Aman et al. (2014), Efa et al. (2016) and Yallew (2016). They explained that, large household size decreases marketed surplus of output product since it increases quantity of product needed for home consumption. On the contrary, the result of Benjamin et al. (2014) and Olanrewaju et al. (2016) showed the positive impact of household size for intensity of crop commercialization. Benjamin et al explained that household head with larger household size are less likely to participate in market but they sell more of their product when they participate. But Olanrewaju et al. simply put the positive association between household size and intensity of …show more content…
As expected, allocation of additional hectare of land for teff production had a positive and significant impact on proportion of teff sold by farmers at 1% level of significance. The positive coefficient of the model reveals that, an additional hectare of land households allocate for teff production would increase the ratio of teff output sold by 16.5%. This indicates, land is a critical asset in crop production and hence in crop commercialization. The more land allocated for teff can increases the production of teff obtained which in turn enable farmers to have high quantity of teff available for