[Show abstract][Hide abstract] ABSTRACT: "This paper explores and compares the impact of different types of public spending on rural household welfare in Ethiopia. The analysis of public financial and household-level data reveals that returns to road investments are significantly higher than returns to other spending, but are much more variable across regions. This regional variability in returns to road investment suggests that the government should carefully consider region-differentiated investment priorities. Some evidence suggests that the returns to road spending are increasing over time, with higher returns to road investments seen in areas with better-developed road networks. Among the other types of public spending, the household expenditure impacts of per capita public expenditure in agriculture and education are smaller, but these effects are also less variable across regions than the effects of road infrastructure spending. The largest effects of agricultural expenditures on rural households are observed in the most urbanized regions, pointing to the potentially important impact of market proximity on returns to public interventions in agriculture. Despite the importance of agriculture to the economy of Ethiopia we found that returns to agricultural spending were fairly low, suggesting the need for further research into the drivers of efficiency and effectiveness of public investments in this important sector." from Authors' Abstract
[Show abstract][Hide abstract] ABSTRACT: One of the most important policy tools in developing countries for affecting economic growth and poverty reduction is expenditure policy. As governments decide how to allocate public spending, they need a clear understanding of how public investments translate into development outcomes. Using regional, zonal, and household-level data from Ethiopia, this paper analyses the relative returns, in terms of rural welfare, to different forms of public investment, including investment in agriculture, health, education, road infrastructure, and health.
[Show abstract][Hide abstract] ABSTRACT: An understanding of the efficiency with which women farmers are operating, particularly where they account for the largest share of the labor force required for agricultural production, is essential for designing appropriate policies to improve the overall performance of agriculture as well as the livelihood of women farmers. This paper contributes to the gender productivity debate by drawing on crop production data collected in three districts (Ada, Akaki and Gimbichu) in East Shoa, Ethiopia during the 1999/2000 cropping season through detailed multi-visit surveys of 80 farm households of which 39 were female-headed households. Using the Tornqvist-Theil index, Total factor productivity (TFP) is measured to analyze crop production efficiency differentials between male and female headed households. The analysis demonstrates that there is little evidence that male-female differences per se account f or productivity differentials in crop production. The results imply that the variation in overall TFP can only arise due to differentials in access to the quality of human and physical resources and services, and differential control of the benefits from output by women versus men. Hence, appropriate institutional frameworks that reduce cultural and social barriers associated with women farmers access to such resources and benefits should be developed. Policies targeted towards increasing female farmers access to education, extension services, credit, adequate amount of quality land and other resources including control over the benefits, will improve the overall productivity and livelihood of female farmers.
International Association of Agricultural Economists, 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia. 01/2006;
[Show abstract][Hide abstract] ABSTRACT: "Previous studies implicitly assume uniform price-effects across regions or provinces within countries. They also do not address the issue of integration between the world food market and local markets. Instead, they assume a complete transmission of changes in world food prices to local food prices. In this paper, we first establish evidence of regional price heterogeneity across Ethiopia. We also applied the Johansen test for market integration over 95 local maize markets and found that none of the Ethiopian regional markets for maize is integrated to the world market. However, there is significant short-term price effects between the world maize market and some Ethiopian regional markets. Using the Almost Ideal Demand System, we estimate loss in household consumption and calorie intake as induced by food price increases. The results suggest a great deal of heterogeneity across regions as well as between rural and urban areas. Studies that fail to account for the characteristics of household demand across locations are more likely to induce misleading policy recommendations. " from authors' abstract
[Show abstract][Hide abstract] ABSTRACT: Market access plays an essential role in assuring better income and welfare levels for smallholder livestock producers, and thus contributes to poverty alleviation. This is even more so in the Ethiopian context where livestock play an essential role in the economy. Making use of the Heckman estimation procedure, this paper identifies policy and technology options to increase participation and sales of smallholder producers in livestock markets in Ethiopia, based on data from 934 household surveys conducted between 1999 and 2001 in the highlands of Tigray and Amhara regions in northern Ethiopia. The analysis demonstrates that physical capital (ownership of different species of livestock and landholding) and financial capital (crop income and non-farm income) are the main factors influencing market participation and sales. Education was also found to positively affect value of sales of dairy products. Distance to markets and towns were not found to be significant. We conclude that in the case of Ethiopia, constraints to production of livestock and livestock products (e.g. capital to purchase animals, feed, and processing equipment) are the main factors limiting participation and sales in livestock markets.