Table 3 Determinants of red pepper market surplus (OLS result)

Age of households (in years)

0.035

0.046

0.76

Experience in red pepper production (in years)

0.071

0.043

1.65*

Size of land for red pepper production (in ha)

3.760

2.465

1.53

Amount of red pepper output (in Qt)

0.347

0.064

5.44***

Distance to development center (in km)

0.191

0.148

1.29

Extension service (1 = accessed, 0 = otherwise)

2.021

1.117

1.81*

Credit service (1 = yes, 0 = otherwise)

0.672

0.880

0.76

Distance to market (in km)

0.110

0.088

1.25

Log off-farm income (in ETB)

− 0.565

0.224

− 2.52**

Log market price of red pepper (in ETB/Qt)

2.043

0.696

2.93***

Constant term

− 10.096

3.139

− 3.22***

Number of obs. = 385

F (10, 374) = 10.91

Probability value = 0.000

R-squared = 0.2258

AJ R-squared = 0.2051