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This volume is a collection of selected empirical studies on determinants of economic growth and development in Ethiopia.The core argument for editing this book is to provide an up-to-date picture of the state and patterns of growth and development in Ethiopia. Ethiopia has been under focus in the past due to draughts, war, famine, development changes and the effects of global economic crisis in the country. A main contribution of this volume is that it helps identify selected important determinants of growth and development in Ethiopia and provides an estimation of their effects using up-to-date data, modelling and methods. Taken together the studies provide a comprehensive picture of the state of growth and development, their measurements, causal relationships and evaluation of efficient policies and practices in achieving progress in Ethiopia. The issues covered represent major challenges to the government and development organizations who are aiming at achieving higher growth and alleviating poverty in the country. The studies cover transition from rural agriculture to urban industry and the development of services.
Recent growth accelerations in Africa are characterized by increasing productivity in agriculture, a declining share of the labor force employed in agriculture and declining productivity in modern sectors such as manufacturing. To shed light on this puzzle, we disaggregate firms in the manufacturing sector by size using two newly created panels of manufacturing firms, one for Tanzania covering 2008-2016 and one for Ethiopia covering 1996-2017. Our analysis reveals a dichotomy between larger firms that exhibit superior productivity performance but do not expand employment much, and small firms that absorb employment but do not experience any productivity growth. We suggest the poor employment performance of large firms is related to use of capital-intensive techniques associated with global trends in technology.
From a war-torn and famine-plagued country at the beginning of the 1990s, Ethiopia is today emerging as one of the fastest-growing economies in Africa. Growth in Ethiopia has surpassed that of every other sub-Saharan country over the past decade and is forecast by the International Monetary Fund to exceed 8 percent over the next two years. The government has set its eyes on transforming the country into a middle-income country by 2025, and into a leading manufacturing hub in Africa. The Oxford Handbook of the Ethiopian Economy studies this country's unique model of development, where the state plays a central role, and where a successful industrialization drive has challenged the long-held erroneous assumption that industrial policy will never work in poor African countries. While much of the volume is focused on post-1991 economic development policy and strategy, the analysis is set against the background of the long history of Ethiopia, and more specifically on the Imperial period that ended in 1974, the socialist development experiment of the Derg regime between 1974 and 1991, and the policies and strategies of the current EPRDF government that assumed power in 1991. Including a range of contributions from both academic and professional standpoints, this volume is a key reference work on the economy of Ethiopia.
Forestry cannot be isolated from the forces that drive all economic activity. It involves using land, labour, and capital to produce goods and services from forests, while economics helps in understanding how this can be done in ways that will best meet the needs of people. Therefore, a firm grounding in economics is integral to sound forestry policies and practices. This book, a major revision and expansion of Peter H. Pearse’s 1990 classic, provides this grounding. Updated and enhanced with advanced empirical presentation of materials, it covers the basic economic principles and concepts and their application to modern forest management and policy issues. Forest Economics draws on the strengths of two of the field’s leading practitioners who have more than fifty years of combined experience in teaching forest economics in the United States and Canada. Its comprehensive and systematic analysis of forest issues makes it an indispensable resource for students and practitioners of forest management, natural resource conservation, and environmental studies.
'Young Lives' is an international longitudinal study of childhood poverty, taking place in Ethiopia, India, Peru and Vietnam. It aims to improve understanding of the causes and consequences of childhood poverty in the developing world.
Ethiopia is facing environmental and poverty challenges, and urgently needs effective management of its environmental resources. Much of the Ethiopian landscape has been significantly altered and reshaped by centuries of human activities, and three-quarters of the rural population is living on degraded land. Over the past two decades the country has seen rapid economic and population growth and unparalleled land use change. This book explores the challenges of sustaining the resource base while fuelling the economy and providing for a growing population that is greatly dependent on natural resources for income and livelihoods. Adopting a political ecology perspective, this book comprehensively examines human impacts on the environment in Ethiopia, defining the environment both in terms of the quantity and quality of renewable and non-renewable natural resources. With high levels of economic production and consumption also come unintended side effects: waste discharges, emissions of pollutants, and industrial effluents. These pollutants can degrade the quality of water, air, land, and forests as well as harm the health of people, animals, and other living organisms if untreated or disposed of improperly. This book demonstrates how the relationship between society and environment is inherently and delicately interwoven, providing an account of Ethiopia’s current environment and natural resource base and future considerations for environmentally sustainable development.
We assess the impact of Ethiopia’s flagship social protection program, the Productive Safety Net Program (PSNP) on the adverse impacts of the COVID-19 pandemic on food and nutrition security of households, mothers, and children. We use both pre-pandemic in-person household survey data and a post-pandemic phone survey. Two thirds of our respondents reported that their incomes had fallen after the pandemic began and almost half reported that their ability to satisfy their food needs had worsened. Employing a household fixed effects difference-in-difference approach, we find that the household food insecurity increased by 11.7 percentage points and the size of the food gap by 0.47 months in the aftermath of the onset of the pandemic. Participation in the PSNP offsets virtually all of this adverse change; the likelihood of becoming food insecure increased by only 2.4 percentage points for PSNP households and the duration of the food gap increased by only 0.13 months. The protective role of PSNP is greater for poorer households and those living in remote areas. Results are robust to definitions of PSNP participation, different estimators and how we account for the non-randomness of mobile phone ownership. PSNP households were less likely to reduce expenditures on health and education by 7.7 percentage points and were less likely to reduce expenditures on agricultural inputs by 13 percentage points. By contrast, mothers’ and children’s diets changed little, despite some changes in the composition of diets with consumption of animal source foods declining significantly.
Over the past two decades, the percentage of the world’s population living on less than a dollar a day has been cut in half. How much of that improvement is because of—or in spite of—globalization? While anti-globalization activists mount loud critiques and the media report breathlessly on globalization’s perils and promises, economists have largely remained silent, in part because of an entrenched institutional divide between those who study poverty and those who study trade and finance. Globalization and Poverty bridges that gap, bringing together experts on both international trade and poverty to provide a detailed view of the effects of globalization on the poor in developing nations, answering such questions as: Do lower import tariffs improve the lives of the poor? Has increased financial integration led to more or less poverty? How have the poor fared during various currency crises? Does food aid hurt or help the poor? Poverty, the contributors show here, has been used as a popular and convenient catchphrase by parties on both sides of the globalization debate to further their respective arguments. Globalization and Poverty provides the more nuanced understanding necessary to move that debate beyond the slogans.