Agricultural growth linkages in Ethiopia: Estimates using fixed and flexible price models

Accelerating growth and poverty reduction, and the ultimate achievement of structural transformation, are the critical policy challenges in present day Ethiopia. This paper examines relevant growth options in terms of their impact on overall growth and poverty reduction in the country. It deploys a...

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Autores principales: Diao, Xinshen, Fekadu, Belay, Haggblade, Steven, Taffesse, Alemayehu Seyoum, Wamisho, Kassu, Yu, Bingxin
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2007
Materias:
Acceso en línea:https://hdl.handle.net/10568/160198
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author Diao, Xinshen
Fekadu, Belay
Haggblade, Steven
Taffesse, Alemayehu Seyoum
Wamisho, Kassu
Yu, Bingxin
author_browse Diao, Xinshen
Fekadu, Belay
Haggblade, Steven
Taffesse, Alemayehu Seyoum
Wamisho, Kassu
Yu, Bingxin
author_facet Diao, Xinshen
Fekadu, Belay
Haggblade, Steven
Taffesse, Alemayehu Seyoum
Wamisho, Kassu
Yu, Bingxin
author_sort Diao, Xinshen
collection Repository of Agricultural Research Outputs (CGSpace)
description Accelerating growth and poverty reduction, and the ultimate achievement of structural transformation, are the critical policy challenges in present day Ethiopia. This paper examines relevant growth options in terms of their impact on overall growth and poverty reduction in the country. It deploys a fixed-price semi-input-output model and a flexible-price economy-wide multi-market model for that purpose. The paper finds that agricultural growth can induce higher overall growth and faster poverty reduction than non-agricultural growth, although the latter can also have large growth effects in some cases. Among sub-sectors within agriculture, staple crops have stronger growth linkages. Decomposition of these effects also reveals that consumption linkages are much stronger than production linkages, i.e., the impact of increased consumption demand due to growth (agricultural and non-agricultural) is much larger than that of the corresponding expansion in input demand. Moreover, non-agricultural sectors have to grow in order to match growing supply of agricultural products and increasing demand for non-agricultural products. Otherwise, falling relative prices of agricultural products may dampen the realized gains in growth and poverty reduction.
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spelling CGSpace1601982025-11-06T07:17:34Z Agricultural growth linkages in Ethiopia: Estimates using fixed and flexible price models Diao, Xinshen Fekadu, Belay Haggblade, Steven Taffesse, Alemayehu Seyoum Wamisho, Kassu Yu, Bingxin poverty reduction agricultural growth agricultural products prices Accelerating growth and poverty reduction, and the ultimate achievement of structural transformation, are the critical policy challenges in present day Ethiopia. This paper examines relevant growth options in terms of their impact on overall growth and poverty reduction in the country. It deploys a fixed-price semi-input-output model and a flexible-price economy-wide multi-market model for that purpose. The paper finds that agricultural growth can induce higher overall growth and faster poverty reduction than non-agricultural growth, although the latter can also have large growth effects in some cases. Among sub-sectors within agriculture, staple crops have stronger growth linkages. Decomposition of these effects also reveals that consumption linkages are much stronger than production linkages, i.e., the impact of increased consumption demand due to growth (agricultural and non-agricultural) is much larger than that of the corresponding expansion in input demand. Moreover, non-agricultural sectors have to grow in order to match growing supply of agricultural products and increasing demand for non-agricultural products. Otherwise, falling relative prices of agricultural products may dampen the realized gains in growth and poverty reduction. 2007 2024-11-21T09:50:15Z 2024-11-21T09:50:15Z Working Paper https://hdl.handle.net/10568/160198 en Open Access application/pdf International Food Policy Research Institute Diao, Xinshen; Fekadu, Belay; Haggblade, Steven; Taffesse, Alemayehu Seyoum; Wamisho, Kassu; Yu, Bingxin. Agricultural growth linkages in Ethiopia: Estimates using fixed and flexible price models. IFPRI Discussion Paper 695. International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/160198
spellingShingle poverty reduction
agricultural growth
agricultural products
prices
Diao, Xinshen
Fekadu, Belay
Haggblade, Steven
Taffesse, Alemayehu Seyoum
Wamisho, Kassu
Yu, Bingxin
Agricultural growth linkages in Ethiopia: Estimates using fixed and flexible price models
title Agricultural growth linkages in Ethiopia: Estimates using fixed and flexible price models
title_full Agricultural growth linkages in Ethiopia: Estimates using fixed and flexible price models
title_fullStr Agricultural growth linkages in Ethiopia: Estimates using fixed and flexible price models
title_full_unstemmed Agricultural growth linkages in Ethiopia: Estimates using fixed and flexible price models
title_short Agricultural growth linkages in Ethiopia: Estimates using fixed and flexible price models
title_sort agricultural growth linkages in ethiopia estimates using fixed and flexible price models
topic poverty reduction
agricultural growth
agricultural products
prices
url https://hdl.handle.net/10568/160198
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AT haggbladesteven agriculturalgrowthlinkagesinethiopiaestimatesusingfixedandflexiblepricemodels
AT taffessealemayehuseyoum agriculturalgrowthlinkagesinethiopiaestimatesusingfixedandflexiblepricemodels
AT wamishokassu agriculturalgrowthlinkagesinethiopiaestimatesusingfixedandflexiblepricemodels
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