Description

In Ethiopia, efforts have been underway by the national agricultural research and extension offices to generate and disseminate technologies in order to increase agricultural productivity and thereby help increase farmers’ incomes. In this regard, examining whether these technologies have achieved the intended objectives is an issue of great concern. Therefore, this study examined the implications of technology component of output growth to investment in agricultural research. Output decomposition model derived from Cobb-Douglas production function was applied to decompose the total change in output into its constituent parts. An attempt was also made to estimate the amount of money that could be saved and an extra output that could be obtained by using the new wheat technologies. Finally, relevant policy implications that would contribute to an attempt of attaining the country’s rural development and poverty reduction goals are drawn.