Macroeconomic Policy and Agriculture in Ethiopia

Course ID
Ethiopian Economics Association (EEA)
Alemayehu Geda


In this paper an attempt is made to examine the like between macroeconomic policy and agriculture in Ethiopia. The traditional fiscal and monetary policy and monetary policy channels and the comprehensive liberalization policy framework are examined using both the before and after approach as well as supply response models. The main conclusion that emerged from the analysis is that Ethiopian agriculture is largely dependent on vagaries of nature. Major macro aggregates are in turn dependent on agriculture. Thus, desirable macro targets could be attained in sustainable manner by policies aimed at alleviating the dependence on the dependence on rain-fed agriculture. The principal problem the paper attempts to unravel is whether the priority accorded to macroeconomic stability at policy level is really fundamental for agricultural development the linkage between the two determines this; however, we found it to be at best weak. Macro policy towards agriculture needs to move from the creation of incentive-comparative environment, such as liberalization towards policies aimed at tackling supply side issues.

Corporate Author:Gebrehiwot Ageba, Jemal Mohammed and Solomon Tesfay (Editors) , Ethiopian Economic Association(EEA) , Department of Economics of AAU & Fredrich Ebert Stifung
Publisher:Ethiopian Economic Association (EEA)
Primary Descriptors:Agriculture-economic Aspect; Agriculture and state

Secondary Descriptor:Structural adjustment (Economic policy)

Geographic Descriptors:Ethiopia
Cataloge Date:02/27/2013
Broad Subject heading:Agricultural – macroeconomic development
Call Number:338.963 PRO 2002
Serial Key Title:Proceedings of the Eleventh Annual conference on the Ethiopian economy
Publication catagory:Annual conference
Content type:EEA Publication
Publication date:2013-12-27 00:00:00
Forum or Discussion date:2013-02-27 00:00:00
Conference Place:Nov. 2-4, 2001, Nazareth, Ethiopia
PDF file: Alemayehu Geda_Macroeconomic policy and agriculture in Ethiopia.pdf
Place of publication:Addis Ababa, Ethiopia
Type of material:Book
Current frequency:Annualy
Thematic area:Policy Reform, Implementation and outcome in Ethiopia
Author: Alemayehu Geda