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Structural change and poverty reduction in Ethiopia: Economy-wide analysis of the evolving role of agriculture

Structural change and poverty reduction in Ethiopia: Economy-wide analysis of the evolving role of agriculture PDF Author: Dorosh, Paul
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 35

Book Description
This paper explores these issues for Ethiopia utilizing an economy-wide computable general equilibrium (CGE) model based on a detailed social accounting matrix (SAM). We present the results of four alternative investment scenarios -- faster investment in i) cities; ii) crop agriculture; iii) the rural non-farm sector and agro-industry; and iv) livestock. The simulations suggest that investments in cities generate faster economic growth and structural transformation. However, given the large share of the population with incomes linked to agriculture and the rural economy, investments in the rural economy are likely to continue to be more pro-poor than urban public investments through the mid-2020s. After the mid-2020s, investments in cities become more pro-poor. In short, though rapid economic growth and structural transformation have diminished the relative importance of the agricultural sector in Ethiopia’s economy, continued public investments in agriculture and the broader agri-food system remain crucial for equity and poverty alleviation in Ethiopia, as well as for reducing food import dependency.

Structural change and poverty reduction in Ethiopia: Economy-wide analysis of the evolving role of agriculture

Structural change and poverty reduction in Ethiopia: Economy-wide analysis of the evolving role of agriculture PDF Author: Dorosh, Paul
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 35

Book Description
This paper explores these issues for Ethiopia utilizing an economy-wide computable general equilibrium (CGE) model based on a detailed social accounting matrix (SAM). We present the results of four alternative investment scenarios -- faster investment in i) cities; ii) crop agriculture; iii) the rural non-farm sector and agro-industry; and iv) livestock. The simulations suggest that investments in cities generate faster economic growth and structural transformation. However, given the large share of the population with incomes linked to agriculture and the rural economy, investments in the rural economy are likely to continue to be more pro-poor than urban public investments through the mid-2020s. After the mid-2020s, investments in cities become more pro-poor. In short, though rapid economic growth and structural transformation have diminished the relative importance of the agricultural sector in Ethiopia’s economy, continued public investments in agriculture and the broader agri-food system remain crucial for equity and poverty alleviation in Ethiopia, as well as for reducing food import dependency.

Agriculture and the Economic Transformation of Ethiopia

Agriculture and the Economic Transformation of Ethiopia PDF Author: John W. Mellor
Publisher:
ISBN:
Category :
Languages : en
Pages : 38

Book Description
Economic development transforms an economy from one that is largely agricultural to one that is largely manufacturing and services. Since agriculture currently dominates Ethiopia's economy and employment, however, there is an issue as to what its role should be in getting from here to there. In the normal process of economic growth, non-agricultural sectors grow more rapidly than the agricultural sector. The slower growth of agriculture, its relative decline, concern about the difficulty of modernizing agriculture and pessimism about the potentials for technological change in agriculture suggest to some that agriculture should not be given priority for scarce resources in the interests of rapid overall growth. There is substantial evidence, however, that raising agricultural productivity is possible and that agricultural growth plays a key role in economic growth, particularly in low income countries. Moreover, the Government of Ethiopia is committed to rapid growth of agriculture as a means of accelerating the economic transformation and reducing poverty. This paper examines the implications of this commitment to both growth and reduction in poverty, analyzes the progress underway, and diagnoses the critical elements of change in policy required to reach the objectives. Combining a review of experiences of other developing countries with an analysis of growth multipliers for Ethiopia, the paper argues that a high rate of agricultural growth has far-reaching positive implications for increasing employment and accelerating poverty reduction. High agricultural growth also helps avoid the creation of megacities with large slum populations. In order to achieve this rapid agricultural growth with positive economy-wide linkages, however, it is necessary to engage "middle farmers", large enough to adopt new technologies and produce significant marketed surpluses, but small and numerous enough to have spending patterns that drive a vibrant rural non-farm sector. Finally, public and private investments in road, electricity and telecommunications are also needed to reduce marketing costs and enable growth in rural market towns and secondary cities, and provide social services to rural people. Maintaining a growth rate in agricultural GDP of six percent would provide enough employment growth to contribute to rapid economic transformation of the economy and rapid decline in poverty. Given the low level of crop yields relative to those of other countries with comparable resources, and relative to best farmers and experiment stations, a high rate of growth in agricultural productivity appears to be feasible. Current government policies are generally consistent with attaining continued high agricultural growth rates. However, reforms are needed to accelerate growth in seed production and distribution, and to improve fertilizer distribution and to accelerate growth in fertilizer use.

Ethiopia's agrifood system: Past trends, present challenges, and future scenarios: Synopsis

Ethiopia's agrifood system: Past trends, present challenges, and future scenarios: Synopsis PDF Author: Dorosh, Paul A., ed.
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 4

Book Description
Ethiopia has experienced impressive agricultural growth and poverty reduction, stemming in part from substantial public investments in agriculture. Yet, the agriculture sector now faces increasing land and water constraints along with other challenges to growth. Ethiopia’s Agrifood System: Past Trends, Present Challenges, and Future Scenarios presents a forward-looking analysis of Ethiopia’s agrifood system in the context of a rapidly changing economy. Growth in the agriculture sector remains essential to continued poverty reduction in Ethiopia and will depend on sustained investment in the agrifood system, especially private sector investment. Many of the policies for a successful agricultural and rural development strategy for Ethiopia are relevant for other African countries, as well. Ethiopia’s Agrifood System should be a valuable resource for policymakers, development specialists, and others concerned with economic development in Africa south of the Sahara.

Ethiopia's agrifood system: Past trends, present challenges, and future scenarios

Ethiopia's agrifood system: Past trends, present challenges, and future scenarios PDF Author: Dorosh, Paul A., ed.
Publisher: Intl Food Policy Res Inst
ISBN: 0896296911
Category : Political Science
Languages : en
Pages : 520

Book Description
Ethiopia has experienced impressive agricultural growth and poverty reduction, stemming in part from substantial public investments in agriculture. Yet, the agriculture sector now faces increasing land and water constraints along with other challenges to growth. Ethiopia’s Agrifood System: Past Trends, Present Challenges, and Future Scenarios presents a forward-looking analysis of Ethiopia’s agrifood system in the context of a rapidly changing economy. Growth in the agriculture sector remains essential to continued poverty reduction in Ethiopia and will depend on sustained investment in the agrifood system, especially private sector investment. Many of the policies for a successful agricultural and rural development strategy for Ethiopia are relevant for other African countries, as well. Ethiopia’s Agrifood System should be a valuable resource for policymakers, development specialists, and others concerned with economic development in Africa south of the Sahara.

Structural Change in Ethiopia

Structural Change in Ethiopia PDF Author: Pedro Martins
Publisher:
ISBN:
Category : Ethiopia
Languages : en
Pages : 42

Book Description
"This paper investigates whether the Ethiopian economy is undergoing a virtuous process of structural change. In particular, it assesses the relative contributions of within-sector and between-sector productivity to output per capita growth. Based on data disaggregated into eight sectors for the period 1996-2011, the analysis suggests that the structure of output has changed considerably - redominantly from agriculture to services - but changes in the composition of employment have lagged behind. Labor productivity growth has been strong across most sectors, albeit mainly driven by within-sector productivity improvements. Nonetheless, the pace of structural change is accelerating and its relative contribution to output growth is increasing"--Abstract.

Farming Systems and Poverty

Farming Systems and Poverty PDF Author: John A. Dixon
Publisher: Food & Agriculture Org.
ISBN: 9789251046272
Category : Business & Economics
Languages : en
Pages : 424

Book Description
A joint FAO and World Bank study which shows how the farming systems approach can be used to identify priorities for the reduction of hunger and poverty in the main farming systems of the six major developing regions of the world.

Ethiopia

Ethiopia PDF Author: Yared Seid
Publisher:
ISBN:
Category : Economic development
Languages : en
Pages : 27

Book Description
Ethiopia has experienced rapid economic growth since 2005. Real gross domestic product (GDP) grew at an average rate of 10.5 per cent per annum for the period between 2004-05 and 2013-14. Public investment in key infrastructure and interventions in the agriculture sector have made important contributions to GDP growth. This growth has been accompanied by a process of capital deepening and signs of structural shift away from traditional and primary sectors towards secondary and tertiary sectors. Both processes of high growth and structural shift have important implications for poverty reduction and income distribution. One potential channel through which these influences work is the labour market. The indications of structural transformation that Ethiopia has shown in the last decade, including a continuous decline in the role of agriculture and rise in that of services, have led to reallocation of jobs and labour from low-productivity agriculture to more productive industrial-in particular the construction sub-sector, and service sectors. The rise in total factor productivity, overall increase in labour force participation rate, and fall in the labour share of the agriculture sector are indicative of the nature and extent of structural shift in the Ethiopian economy. A more durable shift of economic activities towards the manufacturing sector is expected to follow the rising trend in investment in the sector. This study explores the impact of the high economic growth and slow but unmistakable structural change on a number of economic outcomes working through the labour market. The growth opportunities and challenges of the Ethiopian economy are also discussed.

Agriculture and Development

Agriculture and Development PDF Author: Gudrun Kochendörfer-Lucius
Publisher: World Bank Publications
ISBN: 0821371282
Category : Business & Economics
Languages : en
Pages : 245

Book Description
The book highlights proceedings from the Berlin 2008: Agriculture and Development conference held in preparation for the World Development Report 2008.

The Role of Agriculture in Poverty Reduction

The Role of Agriculture in Poverty Reduction PDF Author: Luc J. Christiaensen
Publisher: World Bank Publications
ISBN:
Category : Agricultural Development
Languages : en
Pages : 49

Book Description
The relative contribution of a sector to poverty reduction is shown to depend on its direct and indirect growth effects as well as its participation effect. The paper assesses how these effects compare between agriculture and non-agriculture by reviewing the literature and by analyzing cross-country national accounts and poverty data from household surveys. Special attention is given to Sub-Saharan Africa. While the direct growth effect of agriculture on poverty reduction is likely to be smaller than that of non-agriculture (though not because of inherently inferior productivity growth), the indirect growth effect of agriculture (through its linkages with nonagriculture) appears substantial and at least as large as the reverse feedback effect. The poor participate much more in growth in the agricultural sector, especially in low-income countries, resulting in much larger poverty reduction impact. Together, these findings support the overall premise that enhancing agricultural productivity is the critical entry-point in designing effective poverty reduction strategies, including in Sub-Saharan Africa. Yet, to maximize the poverty reducing effects, the right agricultural technology and investments must be pursued, underscoring the need for much more country specific analysis of the structure and institutional organization of the rural economy in designing poverty reduction strategies.

Measuring Food Security Using Household Expenditure Surveys

Measuring Food Security Using Household Expenditure Surveys PDF Author: Lisa C. Smith
Publisher: Intl Food Policy Res Inst
ISBN: 0896297675
Category : Social Science
Languages : en
Pages : 157

Book Description