Ethiopian Journal of Economics最新文献

{"title":"Determinants of Vertical and Horizontal Export Diversification: Evidences from Sub-Saharan Africa and East Asia","authors":"A. Mengistu","doi":"10.4314/EJE.V17I2.47311","DOIUrl":"https://doi.org/10.4314/EJE.V17I2.47311","url":null,"abstract":"This paper analyzes the main determinants of vertical and horizontal export diversification based on a balanced panel data for 41 countries from SSA and East Asia over the period 1975-2004; using FGLS estimation methods with corrected heteroskedasticity and autocorrelation. The results reveal that education, health, and income per capita, population size, infrastructural development and openness are crucial factors to induce vertical as well as horizontal export diversification. FDI was found to be a key factor to speed-up vertical and horizontal export diversification in East Asia, but only for vertical diversification in SSA. The elasticity’s of human capital and FDI were much higher in East Asia than SSA. The intuition is that East Asian countries have devoted significant amount of investment on education, health, infrastructure and these in turn created a better conducive atmosphere for FDI inflow. The study also reveals domestic investment plays an important role to enhance vertical as well as horizontal export diversification for East Asia, while it only induces horizontal diversification for SSA. While ‘arable land’ resource has a positive and significant effect on vertical and horizontal diversification, ‘oil’ wealth was found to be negatively associated with export diversification. This implies that not all types of natural resource endowment have a ‘Dutch disease’ effect. While inflation, exchange rate, and foreign aid variables have a mixed effect on vertical and horizontal export diversification, political instability however has a strong adverse effect on export diversification; especially for SSA. The key lesson from East Asia to SSA is that investment on human capital and physical infrastructure through foreign investment as well as domestic capital formation are key ingredients, as are stable macro-economic and political environment, a stable and flexible exchange rate, and a fair and an open trading framework in order to accelerate vertical and horizontal export diversification and ultimately promote structural change on the economy. In line with this, SSA countries should follow a dual strategy of vertical and horizontal export diversification, mainly by supporting backward and forward linkages into higher value-added resource-based industries and gradually shift production and exports from customary products to more dynamic ones by developing competitive advantage in the world market.","PeriodicalId":307872,"journal":{"name":"Ethiopian Journal of Economics","volume":"43 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-10-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121740751","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Responding To An Income Shock Through Increasing Forest Extraction: Survey Evidence From Ethiopian Coffee Farmers","authors":"A. Degnet, J. Mburu, K. Holm-Müller","doi":"10.4314/EJE.V17I2.47313","DOIUrl":"https://doi.org/10.4314/EJE.V17I2.47313","url":null,"abstract":"The worldwide turndown in coffee revenue to the majority of resource poor primary producers has become a serious threat to sustainable development. There is however inadequate knowledge with respect to mechanisms used by resource poor coffee farmers to stave off situations of economic hardship. Using cross-sectional household survey data from southwest Ethiopia, the present study investigates whether or not farmers use forests to even out variability associated with risky coffee income. A zero-inflated negative binomial model was used to explain farmer frequency of firewood collection trips as a response to income shock and risk in coffee farming. The empirical results indicate that a rise in household forest extraction effort for firewood is strongly associated with shortfalls in current coffee income and with income uncertainties prevailing in the coffee sector. The study draws policy implication from the perspectives of development and environment.","PeriodicalId":307872,"journal":{"name":"Ethiopian Journal of Economics","volume":"30 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-10-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129813157","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Intra-household gender bias in child educational spending in rural Ethiopia: panel evidence","authors":"Delelegn Andinet","doi":"10.4314/EJE.V16I2.46186","DOIUrl":"https://doi.org/10.4314/EJE.V16I2.46186","url":null,"abstract":"Qualitative and quantitative evidence reveals pervasive gender discrimination in many social and economic aspects in least developing countries, including Ethiopia. Investment in child schooling is an important dimension of this discrimination, which has a lasting consequence on both the child and the country’s economic development as a whole. The main objective of this study is to uncover if there is any intrahousehold gender-bias in the decision to enrollment and allocation of resources to child education. Using a panel data set from Ethiopian Rural Household Survey (ERHS), spanning from 1994-2004, we applied a panel hurdle models consisting of random effects probit for the initial decision in enrollment and conditional linear autoregressive model for the proportion spent. We found statistically significant gender-bias during the initial decision to enrollment against girls, especially those corresponding to secondary school cycle. Since the bias occurs inside the household, public investments should not only focus on facilitating access to school but also work towards altering the demand side as parents have differential preference towards siblings’ education. Policies that increase returns to girl’s education, increasing intrahousehold productivity, legislations that prohibit early marriage, etc. could mitigate the observed level of intra-household gender-bias against girls aged 15-19 years.","PeriodicalId":307872,"journal":{"name":"Ethiopian Journal of Economics","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-09-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123817515","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Valuing Water Supply Service Improvements In Addis Ababa","authors":"G. Kinfe, Egzabher, A. Berhanu","doi":"10.4314/EJE.V16I2.46187","DOIUrl":"https://doi.org/10.4314/EJE.V16I2.46187","url":null,"abstract":"In many cities of developing countries, such as Addis Ababa, water supply service is poor. At the moment, Addis Ababa city which accounts for over a quarter of the nations urban population is facing unreliable and inadequate supply of water and sanitation services. The paper raises crucial issues regarding the necessity to better understand the demand for improved water supply service in the absence of market and tries to link in relation to customers’ participation in the provision of improved water supply service. In an attempt to examine the determinants of the value of improved water service and to establish how much consumers are willing to pay, we use a contingent valuation method (CVM). The tobit model shows socio-economic and demographic variables such as Income of the household, sex of the respondent dummy (female = 1), Family size, education (both secondary and tertiary level), households' year of stay, households not using tank as a storage, wealth of a household, employment status of the respondent dummy (employed = 1) , households satisfaction with the existing service dummy (unsatisfied=1), and location of the study site (Addis Ketema) are significant variables that explain the willingness to pay. The mean willingness to pay (WTP) values are 15.34 and 20.20 cents per bucket (a 20 liter container) above the exiting average tariff of 7.14 cents per bucket as calculated from the tobit and probit model, respectively. The empirical evidence is an important input for strategic planning to ensure that improvements proposed potentially improve cost recovery initiative and increase the level of customer satisfaction.","PeriodicalId":307872,"journal":{"name":"Ethiopian Journal of Economics","volume":"26 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-09-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123909566","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Nature Of Self-Employment In Urban Ethiopia","authors":"G. Haile","doi":"10.4314/EJE.V17I1.46193","DOIUrl":"https://doi.org/10.4314/EJE.V17I1.46193","url":null,"abstract":"Various studies on the Ethiopian economy in general and the urban sector in particular have stated about the staggering level of unemployment in the country. Rapidly growing population and a less than satisfactory performance in economic growth over the years, among others, are to blame for this situation. That the unemployment situation is particularly rampant among the youth which constitutes over a third of the population calls for an urgent intervention aimed at improving the fate of the unemployed. Promoting self-employment forms an integral part of any intervention aimed at reducing unemployment. Given this, studying the determinants of self-employment is essential by way of informing concerned parties as to factors important in encouraging self-employment. As well as surveying the relevant literature, the study undertakes an empirical investigation into the nature of selfemployment using data from a unique panel data set, the Ethiopian Urban Socio- Economic Survey. Findings of the study give some evidence that self-employment is largely a route out of unemployment rather than being something driven by entrepreneurship. It also finds a declining trend in the patterns of self-employment over the study period. Very few studies have looked into issues relating to selfemployment in the context of developing countries in general, and none in the case of Ethiopia. As such, this study serves an important role shedding some light on issues pertaining to self-employment.","PeriodicalId":307872,"journal":{"name":"Ethiopian Journal of Economics","volume":"13 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-09-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134257122","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Stable Food Crops Turning Into Commercial Crops: Case Studies Of Teff, Wheat And Rice In Ethiopia","authors":"B. Gebremedhin, D. Hoekstra","doi":"10.4314/EJE.V17I1.46191","DOIUrl":"https://doi.org/10.4314/EJE.V17I1.46191","url":null,"abstract":"Teff, wheat and rice are becoming important market oriented crops in Ethiopia. This study aims at measuring the level of market orientation of households in these crops, identifying the important market places and market outlets used by producers, and analyzing the determinants of market orientation in these crops. Results are based on analysis of data collected from community (peasant association) and household surveys in three districts in three regional states of the country in 2005. Analysis of descriptive information and econometric analysis are used. About 65 - 77% of households produce these market oriented commodities in the study areas, on about 27 – 44% of the total cultivated land. About 47 – 60% of the produce of these market oriented commodities is sold. The important market places for producers of these commodities are the district town markets and markets located at the peasant associations within the district. Wholesalers and retailers are the most important buyers from producers. Average distance to market places for these commodities is about two walking hours. Econometric analyses show that market orientation of households is affected by a host of factors related to household demographics, household endowments of human and physical capital, access to institutional services, and village level factors. Size of cultivable land and traction power, and household labor supply are important factors that induce households to be market oriented. While household size tends to favor food security objectives, number of dependents is associated with market orientation. Population control measures could contribute to market orientation through their effect of reducing household subsistence requirements. Our results also imply that interventions to improvements markets operations in order to benefit producers need to consider the operation of district level markets. Improving the operations of factor markets of land, traction and farm labor could contribute to enhancing market orientation of farm households. Special attention is needed to female headed households in the process of commercial transformation of subsistence agriculture. The development and institutionalization of marketing extension warrants due consideration.","PeriodicalId":307872,"journal":{"name":"Ethiopian Journal of Economics","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-09-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126517808","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Aid And The Dutch-Disease In Ethiopia","authors":"Tm Tensay","doi":"10.4314/EJE.V16I2.46189","DOIUrl":"https://doi.org/10.4314/EJE.V16I2.46189","url":null,"abstract":"The paper analyses the “Dutch Disease” effect of foreign aid on the Ethiopian Economy. After a brief review of aid theory, it goes on reviewing the available evidences about the Dutch disease effects aid has in the other countries. Then illustrative model is presented. The study employed three stage-least square methods in estimating the real exchange rate and aid variable, on the one hand, and export performance and aid, on the other. The finding is that external aid inflows to Ethiopia result in appreciation of exchange rate and hence loss of export competitiveness, that is, “Dutch Disease” problem has been identified. The study concludes that for external aid inflows to be an effective investment, economic policy needs to focus infrastructure development and the government needs to subsidize firms in the tradable sector.","PeriodicalId":307872,"journal":{"name":"Ethiopian Journal of Economics","volume":"36 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-09-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125358690","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Commercialization farming in Ethiopia: which pathways?","authors":"K. Sharp, L. Eva, G. Samuel","doi":"10.4314/EJE.V16I1.39823","DOIUrl":"https://doi.org/10.4314/EJE.V16I1.39823","url":null,"abstract":"The paper considers the various and potential meanings of commercialisation (or market-oriented agriculture) for Ethiopia. Much attention has been paid recently to high-tech, large-scale, export-oriented enterprises such as floriculture: but international evidence and Ethiopian realities demonstrate that this is only one of many complementary pathways to commercialisation. Most of Ethiopia's small farm households are already engaged with markets to varying degrees: improving the terms of that engagement is likely to have a greater and more widespread impact on poverty than a few large ventures, and should be given equal policy attention. \u0000\u0000Policy debates on commercialisation of agriculture are not new in Ethiopia: various approaches and strategies have been dominant in different periods of history. While improving productivity, increasing foreign currency earnings through export and developing a strong agro-industrial sector were the focus of policy attention in the 1950s and 1960s; accelerating growth and poverty reduction have been much more the focus of recent attempts to increase the commercial orientation of farm households. \u0000\u0000We suggest that four types of commercial farms can currently be discerned in Ethiopia: \u0000- Farming households in marginal or remote areas who have had relatively little interaction with markets until now, but who have the potential and interest to benefit from greater commercialisation or more advantageous interactions;\u0000- Farming households living in more productive and market-linked areas, and/ or growing highly commercialised crops (such as coffee and tea), who have a long experience of production for the market;\u0000- Small investor-farmers, mostly educated and town-based, some of them agricultural professionals, who have begun to establish farming businesses in the last few years in response to the freeing up of land regulations; and\u0000- Large capital-intensive business ventures. \u0000\u0000Different policy support is likely to be needed for different agro-ecological and socio-economic environments and for different groups of farming households, but all can benefit from (and contribute to) enhanced market oriented agricultural growth. Whichever pathways are followed, the destination should be increased income and improved quality of life for rural Ethiopians.\u0000 Ethiopian Journal of Economics Vol. 16 (1) 2007: pp. 43-56","PeriodicalId":307872,"journal":{"name":"Ethiopian Journal of Economics","volume":"16 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-09-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131272849","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Some thoughts on socio-economic engineering in fragile states in Africa: the case of Uganda","authors":"Bonger Tenkir","doi":"10.4314/EJE.V15I2.39821","DOIUrl":"https://doi.org/10.4314/EJE.V15I2.39821","url":null,"abstract":"The variable(s) explaining the poverty or otherwise of nations has successively moved from that held for a very long time - access to natural resources, physical capital, the acquisition and sustainability of technology, the development of human capital, the generation and implementation of sound policies and more recently to institutions. \u0000\u0000With respect to governance institutions, in pre-colonial sub-Saharan Africa [SSA], with the possible exception of Ethiopia and Eritrea, shifting cultivation and pastoralism precluded the emergence of formed sedentary agrarian social classes and states based on the production, exchange, and distribution of agricultural surplus in the mould of the other two developing regions of the world, Asia and Latin America. While the SSA governance institutions may have been adequate given their respective traditional mode(s) of production, given their dis-organization by colonialism in the transition to modernity and multi-ethnic polity, they have given rise to more fragile states with serious shortcomings to serve as a locus for economic development. \u0000\u0000Emerging from the chaotic years of the rule of Idi Amin, when the fragility of the state had attained its maximum expression, Uganda has been in the process of building institutions for economic development within the framework of structural adjustment and liberalization of the economy. These have been anchored around three policy areas enunciated by the Ugandan Government vis. Agricultural Modernization, Poverty Eradication and Universal Primary Education (UPE) in relation to agricultural and rural development\u0000\u0000The field observations on which this paper has built on were garnered in the course of poverty study in seven districts of Uganda - Apac, Lira, Soroti, lganga, Ntungamo, Bushenyi and Mpigi. The mainly anecdotal observations are discussed around five main themes - Access to Land and Livelihoods, UPE & Poor Households, Poverty & Life Cycles, Three Hours as a Working Day and A Very Poor Village in a Rich District. The paper interfaces the observed institutional realities on the ground with the demands of sustainable economic development. It is hoped that the issues raised will stimulate further discussion in tandem with the above policy pronouncement of the Ugandan Government. \u0000\u0000Towards this end, the paper suggests that for creative institutions and policies situated in the African social space, policy analysts need to disentangle the economic, political, social and cultural roots of existing institutions and mould them to nurture and sustain policies and instruments chosen by society. In doing so, such institutions need to be socio-culturally comprehensible but also sufficiently reformist and modernist; inclusive of all stakeholders but attuned to the task environment; endowed with predictable behavior without being inflexible; durable but also adaptable in process and finally transparent and accountable enough to justify their autonomy from undue political interfer","PeriodicalId":307872,"journal":{"name":"Ethiopian Journal of Economics","volume":"13 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-09-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121262822","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Consumption Smoothing And Vulnerability In Four Rural Villages Of Ethiopia","authors":"T. Nigussie","doi":"10.4314/EJE.V15I2.39819","DOIUrl":"https://doi.org/10.4314/EJE.V15I2.39819","url":null,"abstract":"Using year long intensive monitoring rural household survey, the study has shown that while covariant shocks lead to change in consumption patterns, idiosyncratic shocks appear to be fully insured using various copying strategies. However, households were less likely sell livestock to smooth income shock during survey periods. They seek for wage employments but are compelled to sell livestock in absence of such opportunities. Impact of changes in total household income on consumption with control for idiosyncratic shocks were also investigated and found that households are smoothing their consumption evenly across time. Further test of consumption smoothing indicated that there is a limit to insure against shocks through better-off households within communities. Disaggregating into asset poor and nonpoor, the study has also shown that asset poor households are more diversifying income sources than asset nonpoor. However, most of them have low returns; and hence they are more vulnerable than asset nonpoor households.","PeriodicalId":307872,"journal":{"name":"Ethiopian Journal of Economics","volume":"134 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-09-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116347783","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}