Optimising The Policy Cost Of Market Stabilisation: Which Commodity Matters Most In Ethiopia?
In: Journal of international development: the journal of the Development Studies Association, Band 21, Heft 3
ISSN: 1099-1328
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In: Journal of international development: the journal of the Development Studies Association, Band 21, Heft 3
ISSN: 1099-1328
In: Journal of international development: the journal of the Development Studies Association, Band 21, Heft 3, S. 362-378
ISSN: 1099-1328
AbstractUnprecedented food crop price spikes in recent years prompted the Ethiopian government to impose grain export ban and to distribute grain stocks as price stabilization strategies. Successful price stabilization and size of public spending for such programs depend, to a large extent, on the choice and targeting of stabilization strategies. In a situation where a single commodity plays a leadership role in the price dynamics of other crops, targeting intervention at such a commodity would provide a useful mechanism to reduce policy cost of price stabilization while achieving commodity‐wide stabilization objectives. Using multiple cointegration analysis techniques to generate knowledge useful in targeting price stabilization intervention, this study investigates whether there is a single food crop in Ethiopia, among the three major ones (teff, wheat, and maize), with an exclusive price leadership role in the price formation process of the rest. The results show that maize price plays a leadership role in the dynamics of teff and wheat prices at all markets studied, except that of Addis Ababa teff market. Given the major evidence of a price leadership role of maize, it might be possible to achieve commodity‐wide price stabilization objectives through targeting intervention on maize. Such targeted intervention may also prove efficiency in terms of reducing policy cost and public spending. Copyright © 2008 John Wiley & Sons, Ltd.
In: Economic Systems, Band 32, Heft 3
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In: Environment and development economics, Band 18, Heft 5, S. 615-639
ISSN: 1469-4395
AbstractAssessing and empirically measuring the development impact of rainwater management innovations to inform related decisions remains conceptually and methodologically difficult. Whether it is empirically more appropriate to assess and measure the impact pathways than the impact per se remains an important methodological issue. This paper proposes a Rainwater–Livelihoods–Poverty Index (RLPI) as a comprehensive and participatory impact pathway assessment technique with measurable indicators recapitulating the sustainable livelihoods framework. The methodological contributions to rainwater impact assessment are two-fold. First, the RLPI explicitly incorporates intermediate processes and impact pathways as important factors affecting the development impacts of rainwater-related interventions. Second, the RLPI combines quantitative and qualitative household response data into a single yet meaningful quantitative impact indicator. This makes the methodology participatory, allowing farmers engagement to use their knowledge (as local expert observers) in informing rainwater management decisions. The methodology is empirically tested in Diga district (western Ethiopia) and validated using expert opinions.
In: Annals of public and cooperative economics, Band 83, Heft 2, S. 181-198
ISSN: 1467-8292
ABSTRACT: Agricultural cooperatives are important rural organizations supporting livelihood development and poverty reduction. In recognition of such roles of cooperatives, Ethiopia showed a renewed interest in recent years in promoting cooperative sector development. However, there is lack of a wider and systematic analysis to produce sufficient empirical evidence on the livelihood development and poverty reduction impacts of cooperatives in the country. Using a matching technique on rural household income, saving, agricultural input expenditure and asset accumulation as indicator variables, this paper evaluates the livelihood impact of agricultural cooperatives in Sidama zone, Ethiopia. The finding shows that cooperatives improved the livelihoods of service user farmers through impacting better income, more savings and reduced input costs. In view of such evidence, further promotion, deepening and supporting of agricultural cooperatives is recommended.
In: World development perspectives, Band 9, S. 43-47
ISSN: 2452-2929
In: Euricse Working Paper No. 65 | 14
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Working paper
In: Journal of international development: the journal of the Development Studies Association, Band 26, Heft 6, S. 923-932
ISSN: 1099-1328
AbstractThe focus on achieving financial efficiency by microfinance institutions in recent years raises a natural concern on their social outcome, outreach to the poor. Using a stochastic frontier approach on sample microfinance providers in Ethiopia, this paper analysed the effect of an increasingly important efficiency requirement on the traditional social mission of microfinance. It also addressed whether the way ownership is organised and practiced affects the cost of microfinance delivery. The result indicates a trade‐off between the outreach to the poor and cost‐efficiency, suggesting the difficulty in trying to achieve the two goals simultaneously. Financial cooperatives are better in their cost containment compared with specialised microfinance institutions owned by shareholders. Copyright © 2013 John Wiley & Sons, Ltd.
In: Annals of public and cooperative economics, Band 85, Heft 2, S. 257-286
ISSN: 1467-8292
ABSTRACTUsing household survey data from Ethiopia, this paper evaluates the impact of agricultural cooperatives on smallholders' technical efficiency. We used propensity score matching to compare the average difference in technical efficiency between cooperative member farmers and similar independent farmers. The results show that agricultural cooperatives are effective in providing support services that significantly contribute to members' technical efficiency. These results are found to be insensitive to hidden bias and consistent with the idea that agricultural cooperatives enhance members' efficiency by easing access to productive inputs and facilitating extension linkages. According to the findings, increased participation in agricultural cooperatives should further enhance efficiency gains among smallholder farmers.
The study was undertaken with the objective of assessing factors affecting milk market outlet choices in Wolaita zone, Ethiopia. Using farm household survey data from 394 households and Multinomial Logit Model, milk market outlet choices were analyzed. Multinomial Logit model results indicate that compared to accessing individual consumer milk market outlet, the likelihood of accessing cooperative milk market outlet was lower among households who owned large number of cows, those who considered price offered by cooperative lower than other market outlets and those who wanted payment other than cash mode. The likelihood of accessing cooperative milk market outlet was higher for households who were cooperative member, who owned large landholding size, who had been in dairy farming for many years and who received better dairy extension services. Compared to accessing individual consumer milk market outlet, the likelihood of accessing hotel/restaurant milk market outlet was lower among households who were at far away from urban center and higher among households who accessed better dairy extension services and who owned large number of dairy cows. As one of the key factors to boost milk market outlet choices, dairy extension services should be strengthened through redesigning or reforming implementation strategies or improving/strengthening existing policy. It should be strengthened to enable farmers produce surplus milk for markets and should devise means to reduce local milking cow numbers by replacing them with crossbred cows. Moreover, governments should strengthen milk processing cooperatives and improve infrastructure facilities.
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This study was conducted to identify factors affecting packed and unpacked fluid milk consumption preferences of households in Wolaita zone. A total of 194 randomly sampled consumer households of 3 towns of Waliata zone were studied using semi-structured questionnaire. All the data collected were analyzed using Multinomial Logit Model. The result obtained indicated that 78.4% of the households consumed only unpacked fluid milk, 7.7% of households consumed only packed fluid milk and 13.9% of households consumed both unpacked and packed fluid milk. Multinomial Logit model results showed that variables such as age of household heads, income level of households, households with at least a child under six years of age and milking cow, households who disagree with the statement 'packed fluid milk fattens children' and households who disagree with the statement 'advertisement influences people to buy more packed fluid milk', significantly affected consumption of unpacked fluid milk. Education status of household heads, young aged household heads, medical prescription, households who accept the statement 'sterilized milk contains preservatives' reported to have consumed packed fluid milk. Moreover, consumers who agree with the statement 'price of packed fluid milk is expensive compared with unpacked fluid milk' were less likely to consume packed fluid milk. The general implication is that a significant portion of unpacked fluid milk is reported to be consumed in the study area without quality and hygienic inspection. This situation seems to warrant the governments to introduce new policy tools to improve the hygiene and quality of unpacked fluid milk. Milk producing and processing companies need to design better pricing, promotion and advertising strategies for fluid milk consumption to attract consumers. Furthermore, fluid milk processing enterprises and importers need to improve their processing technological status aimed at reducing cost of processing and marketing to attract consumers.
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In: World development: the multi-disciplinary international journal devoted to the study and promotion of world development, Band 84, S. 235-253
Financial cooperatives and microfinance institutions (MFIs) are the two major sources of rural finance in Ethiopia. Whereas MFIs are relatively new, financial cooperatives have existed for centuries in various forms. The coexistence of two different institutions serving the same group of people, and delivering the same financial services, raises several policy questions. Those questions have become particularly relevant, as the government has embarked on developing a new strategy for improving rural financial services delivery. This study is expected to serve as an input to that policy discussion. Using a unique household survey dataset and the propensity-score-matching technique, we examine the impacts of the two financial service providers on agricultural technology adoption. The results suggest that access to institutional finance has significant positive impacts on both the adoption and extent of technology use. However, when impacts are disaggregated by type of financial institution and farm size, considerable heterogeneities are observed. In particular, financial cooperatives have a greater impact on technology adoption than do MFIs, and the impacts appear to vary depending on farm size and types of inputs. The underlying implications of these results are discussed in light of the country's rural finance policies and programs.
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Financial cooperatives and microfinance institutions (MFIs) are the two major sources of rural finance in Ethiopia. Whereas MFIs are relatively new, financial cooperatives have existed for centuries in various forms. The coexistence of two different institutions serving the same group of people, and delivering the same financial services, raises several policy questions. Those questions have become particularly relevant, as the government has embarked on developing a new strategy for improving rural financial services delivery. This study is expected to serve as an input to that policy discussion. Using a unique household survey dataset and the propensity-score-matching technique, we examine the impacts of the two financial service providers on agricultural technology adoption. The results suggest that access to institutional finance has significant positive impacts on both the adoption and extent of technology use. ; Non-PR ; IFPRI1; C Improving markets and trade; C.2 Institutions and Infrastructure for market development ; MTID
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In: IFPRI Discussion Paper 01422
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