109 research outputs found
The interface between policy reforms, household livelihoods and farm-nonfarm linkages: Insights from a village economy in rural Ethiopia
No full textAfter two decades of agricultural-led development strategies since the early 1990s, economic growth has been erratic, land degradation has worsened, and the country has failed to enjoy significant drop in the number of food insecure population. By using a complementary qualitative and quantitative analysis, this study shades some insights regarding the effects of policy reforms on household livelihoods in rural Ethiopia. The qualitative results indicate that agricultural productivity declined and households experienced a downward livelihood trajectories. Farm households have stuck in a stagnant and low productivity agriculture as output growth is largely driven by employment expansion with limited or no productivity gain. Simulation results based on the village computable general equilibrium (CGE) model indicate that growth in agricultural productivity does not promote the development of the nonfarm sector in the form of labour-intensive small businesses. In settings characterized by low productivity, complementary reforms are required to trigger growth and to improve household livelihoods. The growth and employment linkages are strengthened when agricultural growth is driven by a set of mutually reinforcing policy reforms.Ethiopia, Farm, Nonfarm, Linkages, CGE, Village economy, Household livelihoods
Measuring Sectoral Interdependence in Ethiopia: a Social Accounting Matrix (Sam) Approach
Get PDFThe objective of this paper is to measure the extent of inter-sectoral linkages in
Ethiopia using social accounting matrix (SAM). According to the paper, indirect
effects enhance interdependence in the Ethiopian economy. When general
equilibrium effects are taken into consideration, agriculture is found to be superior,
through income and consumption linkages, in terms of stimulating economic
growth in the country. Specifically, teff, wheat, maize and coffee have relatively
strong linkages with other sectors of the economy. Among the industrial subsectors,
food processing, metals, beverages, and textiles have strong linkages with
the rest of the economy. The paper has also showed that an exogenous increase
in the demand for products of agricultural activities has a larger effect on the
demand for both labor and capital. Within the industrial sub-sectors, food
processing, beverages, and textiles have a strong impact on labor income from an
exogenous increase in the demand for the products of these activities. As a result,
rural households benefit more than urban households do from an exogenous
increase in the products of agricultural activities. This implies that policy
interventions that stimulate and increase the incomes of both rural and urban
people would generate a significant demand for selected agricultural and
manufacturing activities. It can be argued that the agricultural sector cannot be
transformed without the development of the modern sector, without which the
much desired growth and development cannot be realized. This balanced growth
between agriculture and industry has received little attention from policy makers
and planners. Thus, it seems reasonable to suggest that the development strategy
of the country should recasting of priorities taking into consideration both the
agricultural and non-agricultural sector
In vitro Evaluation of Tef [Eragrostis tef (Zucc) Trotter] Genotypes for Drought Tolerance
Get PDFDrought is a serious tef production constraint as most of Ethiopia’s agriculture is rain dependent with limited and erratic distribution. The present study was conducted to evaluate tef genotypes for drought tolerance under in vitro condition, and to assess the performance of the in vitro developed regenerants under greenhouse condition. The in vitro experiment was arranged in a factorial experiment using completely randomized design with three replications. Three tef genotypes including Melko (drought tolerant), Gemechis (moderately tolerant) and Pop12S2 (susceptible) and five polyethylene glycol levels (0, 0.5, 1, 1.5 and 2%) were used. Analysis of variance indicated significant differences (P≤0.05) among the genotypes as well as the different polyethylene glycol concentrations for all the measured parameters, but total shoot/culture and survival percentage was not genotype dependent. There was significant genotype by polyethylene glycol interactions on total shoot number/culture, total root number/culture, shoot length, root length and survival percentage, while no significant interaction effect was noted on callus induction efficiency, percent plant regeneration, rooting percentage and number of roots/shoot. The results showed that increasing polyethylene glycol concentration from 0% to 2% in the medium causes a gradual decrease in callus induction and plant regeneration efficiency. In most regenerants, fluctuation behavior was observed for the measured parameters. Hence, to determine the most desirable drought tolerant regenerants, ranking method was taken. Accordingly, regenerant Melko (0.5%), Melko (1.5%), and Melko (1%) gave the most desirable regenerants; thus, they could be used for crossing and further improvement of drought tolerance
In search for broad-based growth: linkages and policy effects in a village economy in rural Ethiopia
No full textGrowth linkages and policy effects in a village economy in Ethiopia: An analysis of interactions using a social accounting matrix (SAM) framework
No full textAccelerating economic growth and poverty reduction are and continue to be the critical policy challenges in Ethiopia. The sluggish growth in agriculture coupled with lack of broad-based economic growth raises debates over the relevant direction and emphasis of development interventions in the country. In this study, we develop a social accounting matrix (SAM) for a cereal dependent village economy in rural Ethiopia and examine relevant growth options in terms of their impact on output, household income, investments in human and environmental capital in the study village. Apart from providing a quantitative analysis of a village economy, the study considers a sectoral disaggregation that takes into account the diversity of not only economic activities in terms of supply response but also heterogeneity of rural households. This study also incorporates investment in human and environmental capital in the analysis of growth linkages using a village social accounting matrix-based framework. Using constrained and unconstrained SAM multipliers, growth linkages of different sectors are explored and activities that best promote growth and household income are identified. Since the growth linkage model is based on the detailed SAM estimated for the village economy, this helps to gauge the effects of policy reforms and strategies on growth, household livelihoods, and investment in human and environmental capital. Accordingly, some simulations are performed to investigate the trade-offs and complementarities of economic and environmental policies on the village economy. Key development pathways and sectoral investment priorities are also identified that help to move the village economy in the direction of sustainable development.Village economy, Ethiopia, Growth linkages, Human capital, Multipliers, Social accounting matrix, Environmental capital
The end of subsistence farming: Growth dynamics and investments in human and environmental capital in rural Ethiopia
No full textIn settings characterized by weak human capital and agricultural land degradation, investments in human capital formation and land conservation can be key candidates for triggering sustained economic growth. In this study, based on insights from growth literature and models of economic transformation, we develop a framework to examine the dynamic interactions between income, human and natural capital in rural Ethiopia. In addition, the trade-offs and complementarities of economic and environmental policies in terms of their impact on growth, investments in human capital formation and land conservation are assessed. The study underscores the centrality of interconnectedness and reciprocal influences between growth and investments in human and natural capital in understanding the long-run implications of policy reforms. Development interventions that are crucial for achieving broad-based and sustainable improvements in household income, human and natural capital are identified, which have wider implications for settings sharing similar socioeconomic characteristics.Ethiopian, Growth, Human capital, Natural capital, Land degradation, Sustainable development
Growth linkages and policy effects in a village economy in Ethiopia: An analysis of interactions using a social accounting matrix (SAM) framework
No full textAbstract Accelerating economic growth and poverty reduction are and continue to be the critical policy challenges in Ethiopia. The sluggish growth in agriculture coupled with lack of broad-based economic growth raises debates over the relevant direction and emphasis of development interventions in the country. In this study, we develop a social accounting matrix (SAM) for a cereal dependent village economy in rural Ethiopia and examine relevant growth options in terms of their impact on output, household income, investments in human and environmental capital in the study village. Apart from providing a quantitative analysis of a village economy, the study considers a sectoral disaggregation that takes into account the diversity of not only economic activities in terms of supply response but also heterogeneity of rural households. This study also incorporates investment in human and environmental capital in the analysis of growth linkages using a village social accounting matrix-based framework. Using constrained and unconstrained SAM multipliers, growth linkages of different sectors are explored and activities that best promote growth and household income are identified. Since the growth linkage model is based on the detailed SAM estimated for the village economy, this helps to gauge the effects of policy reforms and strategies on growth, household livelihoods, and investment in human and environmental capital. Accordingly, some simulations are performed to investigate the trade-offs and complementarities of economic and environmental policies on the village economy. Key development pathways and sectoral investment priorities are also identified that help to move the village economy in the direction of sustainable development
Economy-wide Impact of Investment in Road Infrastructure in Ethiopia: A Recursive Dynamic CGE Approach
Get PDFIn this study an attempt has been made to examine economy wide impact of investment in road infrastructure using a recursive dynamic CGE model. The study used an updated version of the 2005/06 EDRI Social Accounting Matrix. Simulations with the CGE model confirm that with the increasing availability of road infrastructure, there is a positive growth on the macroeconomic and sectorial indicators (Real GDP, absorption, investment, private consumption, real export, and real import) though the magnitude of the effects is relatively small compared with the high investment costs and the changes vary among the different indicators. Similarly, the demand for labor, capital, land and livestock increases with increasing availability of road infrastructure. Income from livestock and land responds better compared to labor and capital as road investment increases. Welfare, measured as equivalent variation, increases on average and at the disaggregate level for all households. The rural poor benefited more from road investment in terms of earning better income and consumption. Road infrastructure affects the production sectors differently. Industrial sectors benefit, while agricultural sectors are relatively less favored.Keywords: Road, infrastructure, CGE, Ethiopi
An econometric analysis of the link between irrigation, markets and poverty in Ethiopia: The case of smallholder vegetable and Fruit Production in the North Omo Zone, SNNP Region
Get PDFThis paper examines the anti-poverty impacts of irrigation and markets on the welfare of rural households within the PRISM framework. Specifically, the papers addresses: the magnitude of anti-poverty effects of irrigation and conditions strengthening the poverty-reducing impact of it; and the market constraints of fruit and vegetable producers. The relationship between irrigation, market-orientation of smallholders and poverty is examined using descriptive statistics and multivariate analysis. In the descriptive analysis, low prices for vegetable and fruit, weak demand, lack of price information, and inadequate transportation have been identified as the main limiting factor for output market. The beneficial effect of irrigation, literacy rate of household heads, and extra years of schooling is readily apparent from the regression. A simulation approach is also used to explore the impact of irrigation and other factors, individually and together, on poverty. The results show that although irrigation reduces poverty, the effect is greater when combined with improving the literacy level of households. This evidence calls for policy measures that focus on the concurrent interventions in irrigation, education, markets, and other supporting inputs, thereby reducing poverty in the cash growing rural areas
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