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

  • Dercon, Stefan
  • Gilligan, Daniel O.
  • Hoddinott, John
  • Woldehan, Tassew

"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. Estimating an instrumental variables model using Generalized Methods of Moments and controlling for household fixed effects, we find evidence of positive impacts with meaningful magnitudes. Receiving at least one extension visit reduces headcount poverty by 9.8 percentage points and increases consumption growth by 7.1 percent. Access to all-weather roads reduces poverty by 6.9 percentage points and increases consumption growth by 16.3 percent. These results are robust to changes in model specification and estimation methods." from authors' abstract

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Paper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 840.

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Date of creation: 2008
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Handle: RePEc:fpr:ifprid:840
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  1. Mogues, Tewodaj & Ayele, Gezahegn & Paulos, Zelekawork, 2008. "The bang for the birr: Public expenditures and rural welfare in Ethiopia," Research reports 160, International Food Policy Research Institute (IFPRI).
  2. Jacoby, Hanan C, 2000. "Access to Markets and the Benefits of Rural Roads," Economic Journal, Royal Economic Society, vol. 110(465), pages 713-37, July.
  3. Dercon, Stefan, 2006. "Economic reform, growth and the poor: Evidence from rural Ethiopia," Journal of Development Economics, Elsevier, vol. 81(1), pages 1-24, October.
  4. Fan, Shenggen & Chan-Kang, Connie, 2005. "Road development, economic growth, and poverty reduction in China:," Research reports 138, International Food Policy Research Institute (IFPRI).
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  17. 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.
  18. N. Gregory Mankiw & David Romer & David N. Weil, 1990. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
  19. Dercon, Stefan & Hoddinott, John, 2005. "Livelihoods, growth, and links to market towns in 15 Ethiopian villages," FCND discussion papers 194, International Food Policy Research Institute (IFPRI).
  20. Jonathan Temple, 1999. "The New Growth Evidence," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 112-156, March.
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  24. Anderson, Jock R. & Feder, Gershon, 2007. "Agricultural Extension," Handbook of Agricultural Economics, Elsevier.
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