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The Impact of Kinship Networks on the Adoption of Risk-Mitigating Strategies in Ethiopia

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  • Di Falco, Salvatore
  • Bulte, Erwin

Abstract

The adoption of certain farm management practices, such as tree planting and soil and water conservation, can reduce exposure to weather shocks. However, in many countries the adoption of such risk mitigating measures is far from complete. We explore how risk-sharing networks in the form of kinship, characterized by the moral imperative of within-group sharing, affects the adoption of risk mitigating activities in rural Ethiopia. We find suggestive evidence that compulsory sharing invites free riding and attenuates incentives for self-protection against weather shocks. We also find evidence of the existence of a possible substitution effect between credit and social networks.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 43 (2013)
Issue (Month): C ()
Pages: 100-110

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Handle: RePEc:eee:wdevel:v:43:y:2013:i:c:p:100-110

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Web page: http://www.elsevier.com/locate/worlddev

Related research

Keywords: kinship; compulsory sharing; drought; flood; Ethiopia; Africa;

References

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Cited by:
  1. Meinzen-Dick, Ruth Suseela & Bernier, Quinn & Haglund, Eric, 2013. "The six "ins" of climate-smart agriculture: Inclusive institutions for information, innovation, investment, and insurance:," CAPRi working papers 114, International Food Policy Research Institute (IFPRI).
  2. Kikulwe, Enoch M. & Fischer, Elisabeth & Qaim, Matin, 2013. "Mobile money, market transactions, and household income in rural Kenya," Discussion Papers 155847, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.

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