Maize is influential for the food security of Ethiopian households as a source of both food and income. As a result, due emphasis is required to enhance productivity through improvement of efficiency of resource usage. As such, the objective of this paper was to determine the level of economic efficiency of smallholder maize farmers and to link the observed efficiency to farmers’ socioeconomic and institutional characteristics in Boricha Woreda, Southern Ethiopia. A multi-stage sampling technique was used to select 204 sample farmers which were interviewed using structured questionnaire to obtain data pertaining to farm production, input usage, and other variables including socioeconomic and institutional factors during the year of 2012. A Cobb-Douglas production function was employed to analyze the data. In the analysis, frontier 4.1c software was used to determine the levels of technical efficiency. Furthermore, descriptive statistics and a two-limit Tobit regression model were employed. It was established from a stochastic frontier model that maize yield was positively influenced by seed, labor, oxen, DAP and Urea fertilizers and farm size. The mean technical and allocative efficiencies were 72 and 70 percent, respectively while the mean economic efficiency was 53 percent. Tobit model results revealed that economic efficiency was positively and significantly affected by education, training, membership in cooperatives, access to credit, and family size whereas variables such as age, distance to extension center, distance to market, livestock and off-farm income affected it negatively. Furthermore, important factors that significantly affected the technical efficiency were sex, age, training, membership in cooperatives, livestock, off-farm income, distance to extension center, distance to market, access to credit and family size of household. The results also showed that allocative efficiency was significantly affected by factors such as membership in cooperatives, age, training, family size, off-farm income and distance to extension center. Based on the findings of the study policy implications for improvements in economic efficiency and productivity were drawn.