This study examines the relative technical efficiency of 12 hospitals in Eastern Ethiopia. Using six-year-round panel data for the period between 2007/08 and 2012/13, this study examines the technical efficiency, total factor productivity, and determinants of the technical inefficiency of hospitals. Data envelopment analysis (DEA) and DEA- based Malmquist productivity index used to estimate relative technical efficiency, scale efficiency, and total factor productivity index of hospitals. Tobit model used to examine the determinants of the technical inefficiency of hospitals. The DEA Variable Returns to Scale (VRS) estimate indicated that 6 (50%), 5 (42%), 3 (25%), 3 (25%), 4 (33%), and 3 (25%) of the hospitals were technically inefficient while 9 (75%), 9 (75%), 7 (58%), 7 (58%), 7 (58%) and 8 (67%) of hospitals were scale inefficient between 2007/08 and 2012/13, respectively. On average, Malmquist Total Factor Productivity (MTFP) of the hospitals decreased by 3.6% over the panel period. The Tobit model shows that teaching hospital is less efficiency than other hospitals. The Tobit regression model further shows that medical doctor to total staff ratio, the proportion of outpatient visit to inpatient days, and the proportion of inpatients treated per medical doctor were negatively related with technical inefficiency of hospitals. Hence, policy interventions that help utilize excess capacity of hospitals, increase doctor to other staff ratio, and standardize number of inpatients treated per doctor would contribute to the improvement of the technical efficiency of hospitals.

This study attempts to analyse the impact of cooperatives on the smallholders' income, productivity, marketed surplus and saving in East Hararghe Zone of Haramaya District. The study is based on primary cross-sectional data collected from cooperative member and non-cooperative member household heads. The propensity score matching (PSM) estimates complemented by a bias correction matching (BCM) and Lewbel instrumental variable (IV) regression estimation shows that cooperatives have a positive impact on smallholders' income and productivity. The findings have strong policy implications. The rural development of the country should work toward strengthening and expanding the existing rural organizations through training and capacity building programmes. It is important particularly establishing new rural-based organizations that enable rural households to engage in business activities. Doing that may help reduce poverty and increase smallholders' income, productivity, and capital accumulation.