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The impact of roads and agricultural extension on consumption growth and poverty in fifteen Ethiopian villages

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  • Stefan Dercon
  • Daniel O. Gilligan
  • John Hoddinott
  • Tassew Woldehanna

Abstract

This paper investigates whether public investments that led to improvements in road quality and increased access to agricultural extension services led to faster consumption growth and lower rates of poverty in rural Ethiopia. Using a Generalized Methods of Moments . Instrumental Variables. Household Fixed Effects estimator, we find evidence of positive impacts with meaningful magnitudes. Access to all-weather roads increases consumption growth by 16 per cent and, reduces the incidence of poverty by 6.7 per cent. Receiving at least one visit from an extension agent raises consumption growth by 7 per cent and reduces poverty incidence by nearly 10 per cent. These results are robust to changes in model specification and estimation methods.

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Bibliographic Info

Paper provided by Centre for the Study of African Economies, University of Oxford in its series CSAE Working Paper Series with number 2007-01.

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Date of creation: 2007
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Handle: RePEc:csa:wpaper:2007-01

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  1. Card, David, 2001. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," Econometrica, Econometric Society, vol. 69(5), pages 1127-60, September.
  2. Stefan Dercon, 2003. "Growth and Shocks: evidence from rural Ethiopia," CSAE Working Paper Series 2003-12, Centre for the Study of African Economies, University of Oxford.
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  8. 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).
  9. S Durlauf & Danny Quah, 1998. "The New Empirics of Economic Growth," CEP Discussion Papers dp0384, Centre for Economic Performance, LSE.
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Cited by:
  1. Antonio Estache, 2010. "A survey of impact evaluations of infrastructure projects, programs and policies," Working Papers ECARES 2010_005, ULB -- Universite Libre de Bruxelles.
  2. Mani, Subha & Hoddinott, John & Strauss, John, 2010. "Long-term impact of investments in early schooling," IFPRI discussion papers 981, International Food Policy Research Institute (IFPRI).
  3. Wiesmann, Doris, 2006. "A global hunger index: measurement concept, ranking of countries, and trends," FCND discussion papers 212, International Food Policy Research Institute (IFPRI).
  4. Stefan Dercon & John Hoddinott and Tassew Woldehanna, 2011. "Growth and chronic poverty: Evidence from rural communities in Ethiopia," Economics Series Working Papers WPS/2011-18, University of Oxford, Department of Economics.
  5. Christian K.M. Kingombe, 2012. "Regional Analysis of Eastern Province Feeder Road Project - District level estimation of the Poverty Alleviation Effects of Rural Roads Improvements in Zambia’s Eastern Province," IHEID Working Papers 10-2012, Economics Section, The Graduate Institute of International Studies.
  6. Mu, Ren & van de Walle, Dominique, 2007. "Rural roads and poor area development in Vietnam," Policy Research Working Paper Series 4340, The World Bank.
  7. Subha Mani & John Hoddinott & John Strauss, 2009. "Long-Term Impact of Investments in Early Schooling – Empirical Evidence from Rural Ethiopia," Fordham Economics Discussion Paper Series dp2009-09, Fordham University, Department of Economics.
  8. Subha Mani & John Hoddinott & John Strauss, 2009. "Determinants of Schooling Outcomes: Empirical Evidence from Rural Ethiopia," Fordham Economics Discussion Paper Series dp2009-03, Fordham University, Department of Economics.
  9. Davis, Kristin & Swanson, Burton & Amudavi, David & Mekonnen, Daniel Ayalew & Flohrs, Aaron & Riese, Jens & Lamb, Chloe & Zerfu, Elias, 2010. "In-depth assessment of the public agricultural extension system of Ethiopia and recommendations for improvement:," IFPRI discussion papers 1041, International Food Policy Research Institute (IFPRI).
  10. Banda, Diana J. & Hamukwala, Priscilla & Haggblade, Steven & Chapoto, Antony, 2011. "Dynamic Pathways into and out of Poverty: A Case of Small Holder Farmers in Zambia," Food Security Collaborative Working Papers 113649, Michigan State University, Department of Agricultural, Food, and Resource Economics.

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