Table 8 Fixed- and random-effect model...

Table 8

Fixed- and random-effect model estimation result

Explanatory variable	Fixed-effect model	Random-effect model
Access to all-weather roads (1 = yes)	0.100***	0.209***
Access to all-weather roads (1 = yes)	(0.0272)	(0.0232)
Mode of transport used¹ (1 = foot)
Modern mode of transport	0.0542	0.0927**
Modern mode of transport	(0.011)	(0.0457)
Traditional mode of transport	0.0765**	0.0727**
Traditional mode of transport	(0.068)	(0.0286)
Logarithm of yield	0.0186***	0.0307***
Logarithm of yield	(0.006)	(0.005)
Land-to-family labor ratio	0.0615**	0.0731***
Land-to-family labor ratio	(0.025)	(0.021)
Participation in nonfarm income	0.102***	0.0926***
Participation in nonfarm income	(0.031)	(0.0244)
Dependency ratio	−0.0741**	−0.107***
Dependency ratio	(0.038)	(0.0212)
Age of the head	0.00321	−0.00264**
Age of the head	(0.032)	(0.001)
Altitude	0.3421	0.13423
Altitude	(0.025)	(0.022)
Gender of the head (1 = male)	0.0702	0.0609
Gender of the head (1 = male)	(0.097)	(0.038)
Years of schooling	−0.0371	0.0218***
Years of schooling	(0.005)	(0.009)
Annual rainfall	0.0515**	0.026**
Annual rainfall	(0.014)	(0.045)
Access to irrigation (1 = yes)	0.370***	0.342***
Access to irrigation (1 = yes)	(0.048)	(0.032)
Access to extension (1 = yes)	0.0864**	0.115***
Access to extension (1 = yes)	(0.0351)	(0.0244)
Access to credit (1 = yes)	0.0317*	0.0448*
Access to credit (1 = yes)	(0.0299)	(0.026)
Number of livestock owned in TLU	0.00984***	0.0140***
Number of livestock owned in TLU	(0.00272)	(0.00175)
Family size in adult equivalent	−0.0840***	−0.0723***
Family size in adult equivalent	(0.0213)	(0.00848)
Constant	6.470***	7.481***
Constant	(0.232)	(0.0807)
Observations	4,346	4,346
R²	0.073
Correlated random effects (CRE) terms included	Yes	Yes
Household controls p value CRE	Yes 0.018	Yes

Explanatory variable	Fixed-effect model	Random-effect model
Access to all-weather roads (1 = yes)	0.100***	0.209***
Access to all-weather roads (1 = yes)	(0.0272)	(0.0232)
Mode of transport used¹ (1 = foot)
Modern mode of transport	0.0542	0.0927**
Modern mode of transport	(0.011)	(0.0457)
Traditional mode of transport	0.0765**	0.0727**
Traditional mode of transport	(0.068)	(0.0286)
Logarithm of yield	0.0186***	0.0307***
Logarithm of yield	(0.006)	(0.005)
Land-to-family labor ratio	0.0615**	0.0731***
Land-to-family labor ratio	(0.025)	(0.021)
Participation in nonfarm income	0.102***	0.0926***
Participation in nonfarm income	(0.031)	(0.0244)
Dependency ratio	−0.0741**	−0.107***
Dependency ratio	(0.038)	(0.0212)
Age of the head	0.00321	−0.00264**
Age of the head	(0.032)	(0.001)
Altitude	0.3421	0.13423
Altitude	(0.025)	(0.022)
Gender of the head (1 = male)	0.0702	0.0609
Gender of the head (1 = male)	(0.097)	(0.038)
Years of schooling	−0.0371	0.0218***
Years of schooling	(0.005)	(0.009)
Annual rainfall	0.0515**	0.026**
Annual rainfall	(0.014)	(0.045)
Access to irrigation (1 = yes)	0.370***	0.342***
Access to irrigation (1 = yes)	(0.048)	(0.032)
Access to extension (1 = yes)	0.0864**	0.115***
Access to extension (1 = yes)	(0.0351)	(0.0244)
Access to credit (1 = yes)	0.0317*	0.0448*
Access to credit (1 = yes)	(0.0299)	(0.026)
Number of livestock owned in TLU	0.00984***	0.0140***
Number of livestock owned in TLU	(0.00272)	(0.00175)
Family size in adult equivalent	−0.0840***	−0.0723***
Family size in adult equivalent	(0.0213)	(0.00848)
Constant	6.470***	7.481***
Constant	(0.232)	(0.0807)
Observations	4,346	4,346
R²	0.073
Correlated random effects (CRE) terms included	Yes	Yes
Household controls p value CRE	Yes0.018	Yes

Note(s): Robust standard errors in parentheses ***p < 0.01, **p < 0.05, *p < 0.1

¹Foot is drooped for comparison reasons

Source(s): Authors' own work using data from the Ethiopian Rural Socioeconomic Survey (ESS)

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