Econometric analysis of factors determining households’ access to cross breed dairy cows in Tigray, Ethiopia

Embaye Kidanu Kindeya

Abstract

This study aimed to identify factors associated with households’ access to improved dairy cows. An econometric model PROBIT is used to estimate the determinant factors, moreover, endogeneity problem was detected on some of the explanatory variables, However, it was found a “proxy” for the stochastic explanatory variables such that, they are uncorrelated with the stochastic disturbance term. Such a proxy is also known as an instrumental variable. This was provided by the two-stage least squares (2SLS). Accordingly, from the determinants of access to crossbreed cows; number of extension agent visit, participation in extension demonstration, access to veterinary service affects the probability of access to improved dairy cows positively, whereas, households distance to the district town affects the probability negatively. The available sources of improved breed cow are district office of agriculture and rural development, relief society of tigray (NGO) and from market.