Growth linkages and policy effects in a village economy in Ethiopia: An analysis of interactions using a social accounting matrix (SAM) framework
Accelerating economic growth and poverty reduction are and continue to be the critical policy challenges in Ethiopia. The sluggish growth in agriculture coupled with lack of broad-based economic growth raises debates over the relevant direction and emphasis of development interventions in the country. In this study, we develop a social accounting matrix (SAM) for a cereal dependent village economy in rural Ethiopia and examine relevant growth options in terms of their impact on output, household income, investments in human and environmental capital in the study village. Apart from providing a quantitative analysis of a village economy, the study considers a sectoral disaggregation that takes into account the diversity of not only economic activities in terms of supply response but also heterogeneity of rural households. This study also incorporates investment in human and environmental capital in the analysis of growth linkages using a village social accounting matrix-based framework. Using constrained and unconstrained SAM multipliers, growth linkages of different sectors are explored and activities that best promote growth and household income are identified. Since the growth linkage model is based on the detailed SAM estimated for the village economy, this helps to gauge the effects of policy reforms and strategies on growth, household livelihoods, and investment in human and environmental capital. Accordingly, some simulations are performed to investigate the trade-offs and complementarities of economic and environmental policies on the village economy. Key development pathways and sectoral investment priorities are also identified that help to move the village economy in the direction of sustainable development.
|Date of creation:||Apr 2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: https://www.uantwerp.be/en/faculties/applied-economic-sciences/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ant:wpaper:2008007. 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.