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Economic Significance of Specific Export Promotion on Poverty Reduction and Inter- Industry Growth of Ethiopia

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  • Chala, Zelalem T.
  • Norton, George W.
  • Grant, Jason H.

Abstract

Micro simulated general equilibrium approach was used to analyze the economic significance of the current export promotion policy of Ethiopia. Simulation results, in general, indicated little achievements of economic growth and poverty reduction under selective export promotion. In this policy approach, only rural households were able to acquire higher income and lower poverty incidence. These achievements however were transmitted to small and big urban households when export promotion was assumed to be implemented across the board of all agricultural activities. Significant economic and inter-industrial growths were attained when the coffee industry was given equal policy treatments like other export agriculture

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Bibliographic Info

Paper provided by Agricultural and Applied Economics Association in its series 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado with number 61739.

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Date of creation: Jul 2010
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Handle: RePEc:ags:aaea10:61739

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Keywords: Selective export promotion policy; computable general equilibrium; poverty reduction; foreign direct investment; Land Economics/Use; Resource /Energy Economics and Policy;

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  1. Margaret Chitiga & Tonia Kandiero & Ramos Mabugu, 2005. "Computable General Equilibrium Micro-Simulation Analysis of the Impact of Trade Policies on Poverty in Zimbabwe," Working Papers MPIA 2005-01, PEP-MPIA.
  2. Ben-David, Dan, 1993. "Equalizing Exchange: Trade Liberalization and Income Convergence," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 653-79, August.
  3. L. Alan Winters & Neil McCulloch & Andrew McKay, 2004. "Trade Liberalization and Poverty: The Evidence So Far," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 72-115, March.
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