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Market Access, Welfare, and Nutrition: Evidence from Ethiopia:

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  • Stifel, David
  • Minten, Bart

Abstract

We estimate the impact of improved market access on household well-being and nutrition using a quasi-experimental setting in Ethiopia. We find that households in remote areas consume substantially less than households nearer to markets, they are more food insecure, and their school enrollment rates are lower. Although their diets are also less diverse, we find no significant differences in anthropometric measures. Part of these welfare differences can be attributed to lower household agricultural production in remote areas. But agricultural production differences alone do not account for all of the differences in household consumption levels for remote households. An additional contributing factor is the deteriorating terms of trade for remote households that negatively affects both the size of the agricultural surplus that these households market and the quantity of food items that they purchase. Reducing transaction costs associated with poor rural infrastructure can pay off important dividends as it can facilitate households’ abilities to transform marketed surpluses into consumption goods and into healthier, more diverse diets.

Suggested Citation

  • Stifel, David & Minten, Bart, 2015. "Market Access, Welfare, and Nutrition: Evidence from Ethiopia:," ESSP working papers 77, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:esspwp:77
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    References listed on IDEAS

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    Cited by:

    1. Ibrahim Hassen Worku & Mekdim Dereje & Bart Minten & Kalle Hirvonen, 2017. "Diet transformation in Africa: the case of Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 48(S1), pages 73-86, November.
    2. Kibrewossen Abay & Kalle Hirvonen, 2017. "Does Market Access Mitigate the Impact of Seasonality on Child Growth? Panel Data Evidence from Northern Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 53(9), pages 1414-1429, September.
    3. Kuma, Tadesse & Dereje, Mekdim & Hirvonen, Kalle & Minten, Bart, 2016. "Cash crops and food security: Evidence from Ethiopian smallholder coffee producers," ESSP working papers 95, International Food Policy Research Institute (IFPRI).
    4. Bachewe, Fantu Nisrane & Berhane, Guush & Minten, Bart & Taffesse, Alemayehu Seyoum, 2015. "Agricultural growth in Ethiopia (2004-2014): Evidence and drivers:," ESSP working papers 81, International Food Policy Research Institute (IFPRI).

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    Keywords

    welfare; food security; nutrition; food consumption; rural areas; poverty; market access; trade;

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