Agricultural Growth and Poverty Reduction in Ethiopia

Course ID
Ethiopian Economics Association (EEA)
Getahun Tafesse

This study investigates the agricultural growth – poverty relationships at the national and household levels. First the study uses results generated from participatory assessments conducted in two farm systems to characterize the agriculture system and identify linkages between agricultural growth and poverty situation. Seven channels are identified through which agricultural growth is likely to reduce poverty in the country. Then attempt is made to quantity the effects of various channels by which the agricultural sector are likely to affect poverty levels. The seven channels identified work through the market and non-market mechanisms involving for major transmission mechanisms: food income price and employment. Here particular emphasis and detailed investigation is made on the first two transmission mechanisms – food and income.

The same results are also used to determine variables that affect household consumption in rural areas. The information is used to construct household consumption model, which is subsequently used to estimate poverty levels under different scenarios, using the FGT poverty functions. Rural household model based on regression methods are used, therefore to measure the impact of agricultural growth (or decline) on consumption first and then the latter on poverty measure. The macro and sect oral analyses are based on forty- year time- series national account data. Various elasticity’s of growth to poverty reduction are estimated at the national and household levels using two approaches each involving two – stage analysis. The first approach used tries to estimate agricultural growth elasticity of poverty indirectly from overall GDP growth elasticity of poverty and the sect oral growth elasticity of GDP growth. The idea of this approach is by the author as he has not com across any study that has used similar approach. In the second approach, a two stage analysis is used to arrive at the growth requirement by estimating first the determinants of welfare (household consumption expenditure) and estimating the poverty impact of a certain growth using the relastn ship between expenditure and poverty incidence.

Corporate Author: Alemayehu Seyoum … [et al.] (editor)
Publisher: Ethiopian Economic Association (EEA)
Primary Descriptors: Agricultural Growth – consumption

Secondary Descriptor: Agricultural Growth – Expenditure

Geographic Descriptors: Ethiopia
Cataloge Date: 02/27/2013
Broad Subject heading: Poverty Reduction
Call Number: 330.963 PRO 2005
Serial Key Title: Proceedings of the Second International Conference on the Ethiopian Economy
Publication catagory: International Conference
Content type: EEA Publication
Volume: III
Publication date: 2013-05-27 23:05:00
Forum or Discussion date: 2013-02-27 15:02:01
Place of publication: Addis Ababa, Ethiopia
Type of material: Book
Current frequency: Annualy
Author: Getahun Tafesse

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