Advanced Search
MyIDEAS: Login

The end of subsistence farming: Growth dynamics and investments in human and environmental capital in rural Ethiopia

Contents:

Author Info

  • Erreygers G.
  • Ferede T.

Abstract

In settings characterized by weak human capital and agricultural land degradation, investments in human capital formation and land conservation can be key candidates for triggering sustained economic growth. In this study, based on insights from growth literature and models of economic transformation, we develop a framework to examine the dynamic interactions between income, human and natural capital in rural Ethiopia. In addition, the trade-offs and complementarities of economic and environmental policies in terms of their impact on growth, investments in human capital formation and land conservation are assessed. The study underscores the centrality of interconnectedness and reciprocal influences between growth and investments in human and natural capital in understanding the long-run implications of policy reforms. Development interventions that are crucial for achieving broad-based and sustainable improvements in household income, human and natural capital are identified, which have wider implications for settings sharing similar socioeconomic characteristics.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.ua.ac.be/download.aspx?c=*TEWHI&n=71469&ct=67651&e=213118
Download Restriction: no

Bibliographic Info

Paper provided by University of Antwerp, Faculty of Applied Economics in its series Working Papers with number 2009008.

as in new window
Length: 43 pages
Date of creation: Sep 2009
Date of revision:
Handle: RePEc:ant:wpaper:2009008

Contact details of provider:
Postal: Prinsstraat 13, B-2000 Antwerpen
Web page: https://www.uantwerp.be/en/faculties/applied-economic-sciences/
More information through EDIRC

Related research

Keywords:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Holden, Stein T. & Barrett, Christopher B. & Hagos, Fitsum, 2003. "Food-For-Work For Poverty Reduction And The Promotion Of Sustainable Land Use: Can It Work?," Working Papers 14759, Cornell University, Department of Applied Economics and Management.
  2. Holden, Stein & Yohannes, Hailu, 2001. "Land redistribution, tenure insecurity, and intensity of production: a study of farm households in southern Ethiopia," CAPRi working papers 21, International Food Policy Research Institute (IFPRI).
  3. Lee, Lung-fei & Maddala, G S & Trost, R P, 1980. "Asymptotic Covariance Matrices of Two-Stage Probit and Two-Stage Tobit Methods for Simultaneous Equations Models with Selectivity," Econometrica, Econometric Society, vol. 48(2), pages 491-503, March.
  4. Deininger, Klaus & Jin, Songqing & Adenew, Berhanu & Gebre-Selassie, Samuel & Nega, Berhanu, 2003. "Tenure security and land-related investment - evidence from Ethiopia," Policy Research Working Paper Series 2991, The World Bank.
  5. Foster, Andrew D & Rosenzweig, Mark R, 1996. "Technical Change and Human-Capital Returns and Investments: Evidence from the Green Revolution," American Economic Review, American Economic Association, vol. 86(4), pages 931-53, September.
  6. Robin Grier, 2005. "The Interaction of Human and Physical Capital Accumulation: Evidence from Sub-Saharan Africa -super-* ," Kyklos, Wiley Blackwell, vol. 58(2), pages 195-211, 04.
  7. E. N. Appiah & W. W. McMahon, 2002. "The Social Outcomes of Education and Feedbacks on Growth in Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 38(4), pages 27-68.
  8. Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October.
  9. Takashi Kurosaki & Marcel Fafchamps, 1998. "Insurance Market Efficiency and Crop Choices in Pakistan," Discussion Paper Series a358, Institute of Economic Research, Hitotsubashi University.
  10. Takashi Kurosaki & Humayun Khan, 2004. "Effects of Human Capital on Farm and Non-Farm Productivity and Occupational Stratification in Rural Pakistan," Hi-Stat Discussion Paper Series d04-46, Institute of Economic Research, Hitotsubashi University.
  11. Weir, Sharada & Knight, John, 2004. "Externality Effects of Education: Dynamics of the Adoption and Diffusion of an Innovation in Rural Ethiopia," Economic Development and Cultural Change, University of Chicago Press, vol. 53(1), pages 93-113, October.
  12. Dasgupta, Partha & Weale, Martin, 1992. "On measuring the quality of life," World Development, Elsevier, vol. 20(1), pages 119-131, January.
  13. Bhalotra, Sonia & Heady, Christopher, 2001. "Child farm labour : the wealth paradox," Social Protection Discussion Papers 24088, The World Bank.
  14. Simon Appleton & Arsène Balihuta, 1996. "Education and agricultural productivity: evidence from Uganda," CSAE Working Paper Series 1996-05, Centre for the Study of African Economies, University of Oxford.
  15. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October.
  16. Pender, John L. & Nkonya, Ephraim M. & Jagger, Pamela & Sserunkuuma, Dick & Ssali, Henry, 2003. "Strategies To Increase Agricultural Productivity And Reduce Land Degradation: Evidence From Uganda," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25816, International Association of Agricultural Economists.
  17. Fafchamps, Marcel & Quisumbing, Agnes R., 1998. "Human capital, productivity, and labor allocation in rural Pakistan," FCND discussion papers 48, International Food Policy Research Institute (IFPRI).
  18. Boris Bravo & Horacio Cocchi & Daniel Solís, 2006. "Adoption of Soil Conservation Technologies in El Salvador: A cross-Section and Over-Time Analysis," OVE Working Papers 1806, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
  19. Asadullah, M. Niaz & Rahman, Sanzidur, 2006. "Farm Productivity and Efficiency in Rural Bangladesh: The Role of Education Revisited," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25482, International Association of Agricultural Economists.
  20. Nkonya, Ephraim & Pender, John & Kaizzi, Kayuki C. & Kato, Edward & Mugarura, Samuel & Ssali, Henry & Muwonge, James, 2008. "Linkages between land management, land degradation, and poverty in Sub-Saharan Africa: The case of Uganda," Research reports 159, International Food Policy Research Institute (IFPRI).
  21. Barbier, Edward B., 2000. "Links between economic liberalization and rural resource degradation in the developing regions," Agricultural Economics, Blackwell, vol. 23(3), pages 299-310, September.
  22. Shively, Gerald E., 1998. "Economic policies and the environment: the case of tree planting on low-income farms in the Philippines," Environment and Development Economics, Cambridge University Press, vol. 3(01), pages 83-104, February.
  23. Gylfason, Thorvaldur & Zoega, Gylfi, 2001. "Natural Resources and Economic Growth: The Role of Investment," CEPR Discussion Papers 2743, C.E.P.R. Discussion Papers.
  24. Byiringiro, Fidele & Reardon, Thomas, 1996. "Farm productivity in Rwanda: effects of farm size, erosion, and soil conservation investments," Agricultural Economics, Blackwell, vol. 15(2), pages 127-136, November.
  25. James J. Heckman, 1977. "Dummy Endogenous Variables in a Simultaneous Equation System," NBER Working Papers 0177, National Bureau of Economic Research, Inc.
  26. S. Illeris & G. Akehurst, 2002. "Introduction," The Service Industries Journal, Taylor & Francis Journals, vol. 22(1), pages 1-3, January.
  27. Casey B. Mulligan & Xavier Sala-i-Martin, 1994. "Measuring aggregate human capital," Economics Working Papers 112, Department of Economics and Business, Universitat Pompeu Fabra, revised Jan 1995.
  28. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May.
  29. Holden, Stein & Shiferaw, Bekele & Pender, John, 2004. "Non-farm income, household welfare, and sustainable land management in a less-favoured area in the Ethiopian highlands," Food Policy, Elsevier, vol. 29(4), pages 369-392, August.
  30. Fan, Shenggen & Zhang, Linxiu & Zhang, Xiaobo, 2002. "Growth, inequality, and poverty in rural China: the role of public investments," Research reports 125, International Food Policy Research Institute (IFPRI).
  31. Yamazaki, Satoshi & Resosudarmo, Budy P., 2006. "Does Sending Farmers Back to School Have An Impact? A Spatial Econometric Approach," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25427, International Association of Agricultural Economists.
  32. Lockheed, Marlaine E & Jamison, Dean T & Lau, Lawrence J, 1980. "Farmer Education and Farm Efficiency: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 29(1), pages 37-76, October.
  33. Arega Alene & V. Manyong, 2007. "The effects of education on agricultural productivity under traditional and improved technology in northern Nigeria: an endogenous switching regression analysis," Empirical Economics, Springer, vol. 32(1), pages 141-159, April.
  34. Gray, Leslie C. & Kevane, Michael, 2001. "Evolving Tenure Rights and Agricultural Intensification in Southwestern Burkina Faso," World Development, Elsevier, vol. 29(4), pages 573-587, April.
  35. Tjalling C. Koopmans, 1963. "On the Concept of Optimal Economic Growth," Cowles Foundation Discussion Papers 163, Cowles Foundation for Research in Economics, Yale University.
  36. Deininger, Klaus & Ali, Daniel Ayalew & Holden, Stein & Zevenbergen, Jaap, 2007. "Rural land certification in Ethiopia : process, initial impact, and implications for other African countries," Policy Research Working Paper Series 4218, The World Bank.
  37. John Pender & Berhanu Gebremedhin & Saumuel Benin & Simeon Ehui, 2001. "Strategies for Sustainable Agricultural Development in the Ethiopian Highlands," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1231-1240.
  38. John Pender & Berhanu Gebremedhin, 2008. "Determinants of Agricultural and Land Management Practices and Impacts on Crop Production and Household Income in the Highlands of Tigray, Ethiopia," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 17(3), pages 395-450, June.
  39. Reardon, Thomas & Vosti, Stephen A., 1995. "Links between rural poverty and the environment in developing countries: Asset categories and investment poverty," World Development, Elsevier, vol. 23(9), pages 1495-1506, September.
  40. Lopez, Ramon E. & Anriquez, Gustavo & Gulati, Sumeet, 2007. "Structural change and sustainable development," Journal of Environmental Economics and Management, Elsevier, vol. 53(3), pages 307-322, May.
  41. Dercon, Stefan & Hoddinott, John, 2005. "Livelihoods, growth, and links to market towns in 15 Ethiopian villages," FCND discussion papers 194, International Food Policy Research Institute (IFPRI).
  42. Wang, Jirong & Cramer, Gail L. & Wailes, Eric J., 1996. "Production efficiency of Chinese agriculture: evidence from rural household survey data," Agricultural Economics, Blackwell, vol. 15(1), pages 17-28, September.
  43. Swan, Trevor W, 2002. "Economic Growth," The Economic Record, The Economic Society of Australia, vol. 78(243), pages 375-80, December.
  44. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
  45. Boris E. Bravo-Ureta & Daniel Solís & Horacio Cocchi & Ricardo E. Quiroga, 2006. "The impact of soil conservation and output diversification on farm income in Central American hillside farming," Agricultural Economics, International Association of Agricultural Economists, vol. 35(3), pages 267-276, November.
  46. Toman, Michael, 2003. "The Roles of the Environment and Natural Resources in Economic Growth Analysis," Discussion Papers dp-02-71, Resources For the Future.
  47. Llewelyn, Richard V. & Williams, Jeffery R., 1996. "Nonparametric analysis of technical, pure technical, and scale efficiencies for food crop production in East Java, Indonesia," Agricultural Economics, Blackwell, vol. 15(2), pages 113-126, November.
  48. Foster, Andrew D & Rosenzweig, Mark R, 2004. "Agricultural Productivity Growth, Rural Economic Diversity, and Economic Reforms: India, 1970-2000," Economic Development and Cultural Change, University of Chicago Press, vol. 52(3), pages 509-42, April.
  49. Wagayehu Bekele, 2005. "Stochastic Dominance Analysis of Soil and Water Conservation in Subsistence Crop Production in the Eastern Ethiopian Highlands: The Case of the Hunde-Lafto Area," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 32(4), pages 533-550, December.
  50. Takahashi, Kazushi & Otsuka, Keijiro, 2007. "Human Capital Investment and Poverty Reduction over Generations: A Case from the Rural Philippines, 1979-2003," IDE Discussion Papers 96, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  51. Asfaw, Abay & Admassie, Assefa, 2004. "The role of education on the adoption of chemical fertiliser under different socioeconomic environments in Ethiopia," Agricultural Economics, Blackwell, vol. 30(3), pages 215-228, May.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ant:wpaper:2009008. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joeri Nys).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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