IDEAS home Printed from https://ideas.repec.org/a/taf/intecj/v26y2012i4p609-633.html
   My bibliography  Save this article

Trade Liberalization and Change in Poverty Status in Rural Ethiopia: What are the Links?

Author

Listed:
  • Adugna Lemi

Abstract

The impacts of trade liberalization on poverty status of farm households in Africa often come through its effects on prices, government revenues, and employment, among other things. For the case of Ethiopia, the main channel through which trade liberalization affects farm households is changes in the prices of inputs and outputs. The aim of this study is to empirically examine the impacts of trade reform on poverty status in rural Ethiopia. The results show that, although households’ resource endowment had consistent and significant improvement impacts, trade liberalization had mixed effects on change in poverty status. As a result of trade liberalization, contrary to expectation, changes in the prices of cash crops (i.e. chat and coffee) had increased the probability of remaining poor and falling into poverty. On the other hand, changes in the relative prices of staple food crops (i.e. teff and wheat), together with access to credit and schools, had increased the probability of escaping poverty and remaining above the poverty line.

Suggested Citation

  • Adugna Lemi, 2012. "Trade Liberalization and Change in Poverty Status in Rural Ethiopia: What are the Links?," International Economic Journal, Taylor & Francis Journals, vol. 26(4), pages 609-633, August.
    • Handle: RePEc:taf:intecj:v:26:y:2012:i:4:p:609-633
    DOI: 10.1080/10168737.2011.616520
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10168737.2011.616520
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10168737.2011.616520?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yoko Niimi & Puja Vasudeva Dutta & L. Alan Winters, 2015. "Trade Liberalisation and Poverty Dynamics in Vietnam," World Scientific Book Chapters, in: Non-Tariff Barriers, Regionalism and Poverty Essays in Applied International Trade Analysis, chapter 16, pages 333-365, World Scientific Publishing Co. Pte. Ltd..
    2. Caesar B. Cororaton & John Cockburn & Erwin Corong, 2005. "Doha Scenarios, Trade Reforms, and Poverty inthe Philippines: a CGE Analysis," Working Papers MPIA 2005-03, PEP-MPIA.
    3. Hyun H. Son & Nanak Kakwani, 2006. "Measuring the Impact of Price Changes on Poverty," Working Papers 33, International Policy Centre for Inclusive Growth.
    4. Stefan Dercon & Krishnan Pramila, 1998. "Changes in Poverty in Rural Ethiopia 1989-1995: Measurement, Robustness Tests and Decomposition," Working Papers of Department of Economics, Leuven 501299, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    5. Stefan Dercon, 2002. "The Impact of Economic Reforms in Rural Households in Ethiopia : A Study from 1989 to 1995," World Bank Publications - Books, The World Bank Group, number 13980, December.
    6. Nabil Annabi & H. Khondker Bazlul & Selim Raihan & John Cockburn & Bernard Decaluwe, 2005. "Implications of WTO Agreements and Domestic Trade Policy Reforms for Poverty in Bangladesh: Short vs. Long Run," Working Papers MPIA 2005-02, PEP-MPIA.
    7. William R. Cline, 2004. "Trade Policy and Global Poverty," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 379, October.
    8. Ravallion, Martin, 1989. "Do price increases for staple foods help or hurt the rural poor?," Policy Research Working Paper Series 167, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Adugna, Lemi, 2009. "Determinants of Income Diversification in Rural Ethiopia: evidence From Panel Data," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 18(1), pages 116-116, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kacem, Rami Ben Haj, 2013. "Monetary versus non-monetary pro-poor growth: Evidence from rural Ethiopia between 2004 and 2009," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 7, pages 1-22.
    2. Christian Rogg, 2006. "Asset Portfolios in Africa: Evidence from Rural Ethiopia," WIDER Working Paper Series RP2006-145, World Institute for Development Economic Research (UNU-WIDER).
    3. Hagos, Fitsum & Erkossa, Teklu & Lefore, Nicole & Langan, Simon, 2014. "Spate irrigation and poverty in Ethiopia," Conference Papers h046926, International Water Management Institute.
    4. Catherine Porter, 2012. "Shocks, Consumption and Income Diversification in Rural Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 48(9), pages 1209-1222, September.
    5. Montalbano, Pierluigi, 2011. "Trade Openness and Developing Countries' Vulnerability: Concepts, Misconceptions, and Directions for Research," World Development, Elsevier, vol. 39(9), pages 1489-1502, September.
    6. Sharada Weir, 1999. "The effects of education on farmer productivity in rural Ethiopia," CSAE Working Paper Series 1999-07, Centre for the Study of African Economies, University of Oxford.
    7. Upton, Joanna & Constenla-Villoslada, Susana & Barrett, Christopher B., 2022. "Caveat utilitor: A comparative assessment of resilience measurement approaches," Journal of Development Economics, Elsevier, vol. 157(C).
    8. Victor Nechifor & Ole Boysen & Emanuele Ferrari & Kidanemariam Hailu & Mohammed Beshir, 2020. "COVID-19: socioeconomic impacts and recovery in Ethiopia," JRC Research Reports JRC122405, Joint Research Centre.
    9. Jayne, T. S. & Yamano, Takashi & Weber, Michael T. & Tschirley, David & Benfica, Rui & Chapoto, Antony & Zulu, Ballard, 2003. "Smallholder income and land distribution in Africa: implications for poverty reduction strategies," Food Policy, Elsevier, vol. 28(3), pages 253-275, June.
    10. Ghebru, Hosaena & Holden, Stein, 2013. "Links between Tenure Security and Food Security: Evidence from Ethiopia," CLTS Working Papers 2/13, Norwegian University of Life Sciences, Centre for Land Tenure Studies, revised 10 Oct 2019.
    11. Raghav Gaiha, 2003. "Are Millennium Goals of Poverty Reduction Useful?," Oxford Development Studies, Taylor & Francis Journals, vol. 31(1), pages 59-84.
    12. Alem, Yonas & Köhlin, Gunnar, 2012. "Life Satisfaction in Urban Ethiopia: Trends and determinants," Working Papers in Economics 548, University of Gothenburg, Department of Economics.
    13. Sungil Kwak & Stephen C. Smith, 2013. "Regional Agricultural Endowments and Shifts of Poverty Trap Equilibria: Evidence from Ethiopian Panel Data," Journal of Development Studies, Taylor & Francis Journals, vol. 49(7), pages 955-975, July.
    14. Wassie Berhanu & Bichaka Fayissa, 2010. "Analysis of the Household Economy and Expenditure Patterns of a Traditional Pastoralist Society in Southern Ethiopia," Working Papers 201005, Middle Tennessee State University, Department of Economics and Finance.
    15. Alem, Yonas, 2014. "Poverty Persistence and Intra-Household Heterogeneity in Occupations: Some Evidence from Ethiopia," RFF Working Paper Series dp-14-05-efd, Resources for the Future.
    16. Xavier Vollenweider, 2014. "A simple framework for the estimation of climate exposure," GRI Working Papers 158, Grantham Research Institute on Climate Change and the Environment.
    17. Tsehay, Abrham Seyoum & Bauer, Siegfried, 2012. "Poverty Dynamics and Vulnerability: Empirical Evidence from Smallholders in Northern Highlands of Ethiopia," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126873, International Association of Agricultural Economists.
    18. Stephen C. Smith & Sungil Kwak, 2011. "Multidimensional Poverty and Interlocking Poverty Traps: Framework and Application to Ethiopian Household Panel Data," Working Papers 2011-04, The George Washington University, Institute for International Economic Policy.
    19. Daniel Ayalew Mekonnen & Daniel Ayalew Mekonnen & Nicolas Gerber & Nicolas Gerber, 2016. "Aspirations and income, food security and subjective well-being in rural Ethiopia," FOODSECURE Working papers 51, LEI Wageningen UR.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:intecj:v:26:y:2012:i:4:p:609-633. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RIEJ20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.