Local and Personal Networks in Employment and the Development of Labor Markets: Evidence from the Cut Flower Industry in Ethiopia

経済学 / EconomicsWe examine the roles of local and personal networks in the employment process and the emergence and development of the labor market in Ethiopia’s growing cut flower industry. Using primary survey data of 320 workers randomly sampled from all 64 farms, we find that workers who were recruited informally using the social ties were paid less than the formally-recruited workers at hiring. However, these workers quickly increased their productivity, and the effect of social ties on wages disappeared over time. Further, we find that the development of labor market for this newly-emerged industry took place particularly within the industrial clusters.JEL Classification Codes: O15, Q12, J33http://www.grips.ac.jp/list/jp/facultyinfo/matsumoto_tomoya

Market Access, Soil Fertility, and Income in East Africa

経済学 / EconomicsWe identify the major factors affecting farm and nonfarm income by using panel data in Ethiopia, Kenya, and Uganda. We supplement the panel data with household-level soil fertility data and road distance data to the nearest urban center. The proportion of the loose surface roads, instead of tarmac roads, has a clear negative association with crop income, livestock income, and per capita income in both Kenya and Uganda. We also find that soil fertility has a clear positive association with crop and livestock incomes in Kenya, but not in Uganda and Ethiopia. In Kenya, farmers produce not only cereal crops but also high value crops and engage in dairy and other livestock production if the fertility of the soil is good

The Maize Farm-Market Price Spread in Kenya and Uganda

経済学 / EconomicsIn this chapter, we analyze the farm-market price spreads of maize in Kenya and Uganda to examine how agricultural sectors are integrated with local markets. The farm-market price spread is calculated by subtracting the farm-gate price from the market price at the nearest maize market. We find that the farm-market price spread of maize is about 15 and 33 percent of the market price in Kenya and Uganda, respectively. In both countries, the price spread increases by 2 percentage points for each additional driving hour away from the nearest maize market. While the former finding suggests that the overall marketing costs are lower in Kenya than in Uganda, the latter finding indicates that reductions in transportation costs will increase the farmer prices of maize in both countries

Fertilizer Policies, Price, and Application in East Africa

経済学 / EconomicsIn this chapter, we investigate the determinants of inorganic fertilizer use on major cereal crops in Kenya, Ethiopia, and Uganda. By using panel data in the three countries, we estimate the determinants of the fertilizer price and application at the household level and evaluate the fertilizer policies in each country. The determinants of the DAP price and application in Kenya can be mostly explained by market forces and agro-ecological factors, suggesting that market-based policies would be effective. In Ethiopia, on the other hand, the estimation results indicate that policy related factors determine the fertilizer price and application. Although the subsidy program in Ethiopia may contribute to poverty alleviation, technical returns from such programs could be low. Uganda should learn from the experience from these two neighboring countries

An Inquiry into the Rapid Growth of the Garment Industry in Bangladesh

経済学 / EconomicsThe export-oriented garment industry in Bangladesh has grown rapidly for the last three decades and now ranks among the largest garment exporters in the world. While its　early success is attributed to the initial technology transfer from South Korea, such a one-time infusion of knowledge alone is insufficient to explain the sustained growth for three decades. This paper uses primary data collected from knitwear manufacturers and garment traders to explore the process of the continuous learning of advanced skills and know-how. It finds, among other things, that the high profitability of garment manufacturing due to the initial infusion of specific human capital attracted a number of highly educated entrepreneurs to the industry, that the division of labor between manufacturers and traders has facilitated the expansion of the industry, and that enterprise growth has lasted long because of the continuous learning from abroad by the highly educated entrepreneurs.http://www.grips.ac.jp/list/jp/facultyinfo/sonobe_tetsushi

The Impacts of Fertilizer Credit on Crop Production and Income in Ethiopia

経済学 / EconomicsIn this chapter, we evaluate the impact of fertilizer credit on crop choice, crop yield, and income using two-year panel data of 420 households in rural Ethiopia. The fertilizer credit is found to increase input application for crop production. As a consequence, it has a substantial impact on the yield of teff. We also find that the impact on net crop income per cultivated area and also on per capita income is marginal because of the low profitability due to the low output price and high input cost of agricultural production.http://www.grips.ac.jp/list/jp/facultyinfo/matsumoto_tomoya

Haki Yetu (It’s Our Right): Determinants of Post-Election Violence in Kenya

経済学 / EconomicsDuring the violence following the 2007 presidential election in Kenya, it has been reported that around 1,000 people were killed and over 500,000 people were displaced. In this paper, we investigate the root causes of the violence by using a panel survey of 295 rural households living Rift Valley and Nyanza Provinces, where the violence took place. Among our sample households, 11 percent of male members and 9 percent of female members were victims of the violence, 11 percent of households were displaced, and 23 percent of households hosted at least one internally displaced person. The results show that certain ethnic groups had higher probabilities of being victims of the violence. In addition, we find that members of households without land titles were victimized more than those with land titles, but they were less likely to leave their homes. They could be victimized because the mobs wanted to chase them away, but they hesitated to leave their homes, knowing that it would be difficult for them to retain their land without land titles. The land issue was clearly one of the root causes of the violence, and the issue should be solved or at least addressed to prevent similar conflicts in the future

Dairy-Banana Integration and Organic Fertilizer Use in Uganda

経済学 / EconomicsAn intensive dairy and crop farming system found in the East African highlands provides manure and urine, taken from stalls of improved dairy cattle, for crops such as banana. By using panel data of 894 rural households in 2003 and 2005 in Uganda, we find that the number of improved cattle per ha increases the organic fertilizer application on banana plots by 218 kilograms per ha. We also find that banana farmers applied more organic fertilizer on less fertile soils. Regarding banana yield, we find that one ton of the organic fertilizer per ha increases the banana yield by 10 percent, and a one percentage point increase in the soil organic matter (SOM) increases the banana yield by 7 percent. Because the organic fertilizer application improves the SOM in the long-run, it has a long-term impact on the banana yield. The intensive dairy and banana cropping system is an appropriate farming system in Uganda where soil degradation is severe and mineral fertilizer is expensive.JEL Classification Codes: Q12, R23, J2

School Choice between Public and Private Primary Schools under the Free Primary Education Policy in Rural Kenya

経済学 / EconomicsThe elimination of school fees from public primary education under the Free Primary Education (FPE) Policy in Kenya in 2003 has increased enrollment by 22 percent in the first year alone. Some experts, however, suggest that the FPE has reduced the quality of education in public schools and increased the number of students who transfer from public to private schools. To obtain a better understanding of the school choice in Kenya, we estimate the school choice between public and private primary schools and track primary school children over a period of three years to identify the factors associated with school transfers. We find that the proportion of children attending private schools indeed increased from 4.8 to 12.2 percent, especially among children in relatively wealthy households, from 2004 to 2007. We also find that the school quality, measured by the Kenya Certificate of Primary Education exam score at the school level, has a positive impact on the choice of private schools. Regarding school transfers, we not only find transfers from public to private schools but also between public schools. The children in relatively wealthy households have a higher probability of transferring to private schools than children in poorer households. Maintaining the quality of education among public primary schools under the FPE Policy is an urgent policy agenda for the Kenyan government as well as other governments that have adopted free primary education policies in order to enhance the equity of the entire education system