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To Specialize or Diversify: Agricultural Diversity and Poverty Persistence in Ethiopia

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  • Josephson, Anna Leigh
  • Michler, Jeffrey D.

Abstract

This article answers the empirical question: what is the relationship between the choice to specialize or diversify in crop production and household poverty status? We use household panel data from Ethiopia and a recently developed parametric method for estimating dynamic binary response models with endogenous contemporaneous regres- sors. Our results provide evidence that households which grow a diverse set of crops are less likely to be poor. Additionally, crop diversity reduces the probability that a house- hold will fall into poverty and reduces the probability that a household will remain in poverty. We conclude that policies which encourage households to specialize in cash crops may be counter-productive while policies which encourage crop diversification may reduce poverty.

Suggested Citation

  • Josephson, Anna Leigh & Michler, Jeffrey D., 2015. "To Specialize or Diversify: Agricultural Diversity and Poverty Persistence in Ethiopia," 2015 Conference, August 9-14, 2015, Milan, Italy 212459, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae15:212459
    DOI: 10.22004/ag.econ.212459
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    Agricultural and Food Policy; Food Security and Poverty; International Development;
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