The interface between policy reforms, household livelihoods and farm-nonfarm linkages: Insights from a village economy in rural Ethiopia
After two decades of agricultural-led development strategies since the early 1990s, economic growth has been erratic, land degradation has worsened, and the country has failed to enjoy significant drop in the number of food insecure population. By using a complementary qualitative and quantitative analysis, this study shades some insights regarding the effects of policy reforms on household livelihoods in rural Ethiopia. The qualitative results indicate that agricultural productivity declined and households experienced a downward livelihood trajectories. Farm households have stuck in a stagnant and low productivity agriculture as output growth is largely driven by employment expansion with limited or no productivity gain. Simulation results based on the village computable general equilibrium (CGE) model indicate that growth in agricultural productivity does not promote the development of the nonfarm sector in the form of labour-intensive small businesses. In settings characterized by low productivity, complementary reforms are required to trigger growth and to improve household livelihoods. The growth and employment linkages are strengthened when agricultural growth is driven by a set of mutually reinforcing policy reforms.
|Date of creation:||Aug 2010|
|Date of revision:|
|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
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.:
- Anriquez, Gustavo & Stamoulis, Kostas G., 2007. "Rural Development and Poverty Reduction: Is Agriculture Still Key?," eJADE: electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization, Agricultural and Development Economics Division, vol. 4(1).
- Decaluwe, B. & Patry, A. & Savard, L. & Thorbecke, E., 1999.
"Poverty Analysis Within a General Equilibrium Framework,"
Cahiers de recherche
9909, Université Laval - Département d'économique.
- Decaluwe, B. & Patry, A. & Savard, L. & Thorbecke, E., 1999. "Poverty Analysis Within a General Equilibrium Framework," Papers 9909, Laval - Recherche en Politique Economique.
- Hans Löfgren & Sherman Robinson, 1999. "Nonseparable Farm Household Decisions in a Computable General Equilibrium Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(3), pages 663-670.
When requesting a correction, please mention this item's handle: RePEc:ant:wpaper:2010018. 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 references are entirely missing, you can add them using this form.