THE EFFECTS OF MULTINATIONAL ENTERPRISES INVESTMENT IN THE NONTRADED SECTOR OF DEVELOPING ECONOMIES

This paper draws attention to the implications of multinational enterprises (MNEs) investment in the nontraded sector of a developing host country when their investment is characterized by the transmission of superior technology, but also draws on the local capital market to secure factors of production. In a simple general equilibrium model, we show that once the MNEs control the nontraded sector, their activities generate disturbing results for the host country¡¯s economy. In particular, the host country may experience reduced total employment and real national income as a result of their investment. The cause for such unsettling outcomes is directly related to the MNEs utilization of their sector-specific stock of knowledge-based assets in the production of nontraded goods.Foreign Direct Investment, Knowledge-based Assets, Multinational Enterprises, Nontraded Good

A Policy Impact Evaluation Model For Scotland: Decoupling Single Farm Payments

The purpose of this paper is to assess the impacts of decoupling single farm payments in Scotland. It focuses on aggregate impacts on the agricultural products in domestic and external markets and the spill-over effect of this on the non-agricultural sector as well as an aggregate impact on the Scottish GDP. In order to capture system-wide impacts of the policy reform, a CGE model was formulated and implemented using a social accounting matrix constructed for Scotland. The simulation results suggest that the Scottish agricultural sector may encounter declines in output and factor us as a result of the policy reform. However, this critically depends on two factors: (a) the price effect of the policy reform on Scottish agricultural products relative to the EU average as well as the conditions of changes in world agricultural market prices; and (b) the extent to which customers would be sensitive to price effects of the policy reform. As far as the spill-over effect to the non-agricultural sector is concerned, decoupling of direct payments seems to have a positive spill-over effect. Similarly, the aggregate GDP effect is positive under all simulation scenarios. Critically, the simulation experiments indicate that policy shock may have a symmetrical outcome across the two sectors, with contractions in agriculture being accompanied by expansions in the non-agricultural sector, mainly because of factor market interactions between the two sectors.Cap reform; single farm payments; spill-over effects; Scotland

THE EFFECTS OF SINGLE FARM PAYMENTS ON SCOTTISH AGRICULTURE: A CGE MODELING APPROACH

Using a CGE model calibrated on Scottish data, this paper examines two important issues related to evaluating impacts of the Single Farm Payment. These are specification of product transformation functions and investigation into supply elasticity parameter. Simulation results from a standard CGE were compared with those from an alternative optimisation framework proposed in this study. The latter yielded a policy effect that is likely to represent behaviour of a profit maximising farmer. The parameter sensitivity analysis showed the important role differences in supply conditions can play; which implied a need for further econometric studies to estimate supply parameters.Single farm payments, decoupling, multi-output farming, farm types, CET function, CGE modelling, Agricultural Finance, Demand and Price Analysis, Farm Management, Research Methods/ Statistical Methods,

Measuring and Explaining Technical Efficiency of Dairy Farms: A Case Study of Smallholder Farms in East Africa

Replaced with revised version of paper 11/18/10.Dairy farms, efficiency scores, Data Envelopment Analysis, fractional regression, returns to scale, Livestock Production/Industries,

System-wide Impacts of Agricultural Export Taxes: A Simulation Experiment with Ethiopian Data

This paper examines rural-urban spillover effects of agricultural price policy in a developing economy. It employs a computable general equilibrium methodology based on a bi-regional social accounting matrix for Ethiopia. The simulation experiment quantifies system-wide impacts of exports tax on agricultural products. Protecting consumers (particularly urban households), transferring income from producers to consumers, and shifting resources from the agriculture to industry are among the most important motivations cited in the literature for exports tax on agricultural products in developing economies. However, taking inter-regional spill-over effects into account, this study shows that the removal of agricultural export tax does actually improve household welfare both in the rural and urban regions. Also, the elimination of export tax enhances structural transformation of the economy

System-wide Impacts of Agricultural Export Taxes: A Simulation Experiment with Ethiopian Data

This paper examines rural-urban spillover effects of agricultural price policy in a developing economy. It employs a computable general equilibrium methodology based on a bi-regional social accounting matrix for Ethiopia. The simulation experiment quantifies system-wide impacts of exports tax on agricultural products. Protecting consumers (particularly urban households), transferring income from producers to consumers, and shifting resources from the agriculture to industry are among the most important motivations cited in the literature for exports tax on agricultural products in developing economies. However, taking inter-regional spill-over effects into account, this study shows that the removal of agricultural export tax does actually improve household welfare both in the rural and urban regions. Also, the elimination of export tax enhances structural transformation of the economy

Determinants of Pastoralists Participation in Alternative Livelihoods: The Case of Amibara Woreda of Afar Region

Afar Regional State is the fourth largest region (99,646.54 km2 area) in Ethiopia, located in the northeastern part of the country. It shares boundaries with Tigray, Amhara, Oromia, and Ethio-Somali Regions of Ethiopia and also borders Djibouti and Eritrea (Afar Regional Atlas. 2014). Most of Afar Region has a harsh and dry landscape largely covered by desert scrubland. The entire region of Afar is classified under Pastoral and Agro-pastoralist production system. About 7.0% of the total area of the region is suitable for crop production; and 22.4% of the total area of the region could be developed for agricultural activity Afar land use policy 2008. The Afar economy is poorly diversified and not well integrated with the market. Afar pastoralists have witnessed the growing concern over extreme vulnerability and declining change in the traditional livelihood system (Tufts 2019). This is mainly due to multifaceted driving forces of change such as declining access to traditional land, demographic and policy changes, extreme climate events, market and other drivers. Among others, climate change posed a huge challenge; the most noticed variables are distributions and inconstancy of rain fall (Shekuru et al., 2020), increased temperatures and recurrent prolonged droughts (Fekadu, 2015;). These aggravated stock loss and impoverishment, food insecurity and conflict. The Afars are highly pastoralists and have access to few alternative economic activities, although rangeland resources contribute to the traditional activities in the past to support the household during crises. However, it has been observed that pastoralists are increasingly participating in alternative livelihoods to adapt to the changes. Dependence on alternative livelihoods has shown growing trends (Tufts 2019) and while livestock ownership often concentrated among wealthier households (Catley 2017). The Alternative livelihood included in this study are activities which are relatively in safe working environment, and takes place without harmful social or environmental consequences and include certain types of business development for those with access to capital or credit and related employment (Little 2016). The rising concern over food and livelihood security in the Afar region, government and development partners are promoting alternative livelihoods. The government Pastoral Development Policy 2018 is aimed at enhancing alternative livelihood as one of the paths for pastoralist development. Further, although a number studies were done in different corner on the alternative livelihood in pastoral areas. Few literatures are available on determinates of participation in alternative livelihoods; and, few information is available and no works had been done so far at the study area. Moreover, by examining the participation of pastoralist in alternative livelihood provide clear information on improving the enabling environment to alternative livelihood development through improvement skill training finance, business and entrepreneurship and technical support. Due to the above-mentioned facts, this study focused on assessing determinants of participation in alternative livelihood and pastoralists’ perception towards alternative livelihoods. The objective of this paper is to examine the determinants of participating in to alternative livelihoods and analyzing the perception of pastoralist on alternative livelihoods. DOI: 10.7176/JPID/61-01 Publication date: January 31st 202

Determinates of Employment Generation through Urban Agriculture: The Case of Bishoftu Area of Oromia Region, Ethiopia

Agriculture is as an important tool to create urban employment and improve urban livelihood. In light of this, this paper attempted to look at the status and employment contributions.  To meet this objective, both secondary and primary data were collected. To analyze the data, both descriptive and inferential techniques were applied. The result indicated that various types of urban farming such as; poultry, fattening, dairy, fruit and vegetable, nursery and ornamental crops, flowers has extensively been found in the city. The result further showed that the sector has played multiple roles to the farmers such as; a means of income generation, employment and household food supplement. Though the result stated that both form of urban farms contributes to employment generation, those organized by SME has created more jobs (average of 5.6) than that of household level farms (average jobs created were 1.76). Moreover, the result of MLR model estimation for employment contribution by household farm indicated that, the average number of fulltime workers used by the farm was significantly influenced by those farmer respondents having the perception of a better credit and inputs access, land access and ownership, holding diploma and above educational level, better farm income and engagement in poultry and dairy farms. In addition to its role to urban farmers’, urban agriculture has played a enormous role in supplying; fresh products to the city dwellers, raw materials to agro processing industries and market to their products. Keywords: Employment, Urban agriculture (UA), Enterprise

Analysis of Livelihood Strategy Determinates Among Different Wealth Categories of Rural Households: A Case from Amhara Region of Ethiopia

This study was conducted to determine factors affecting choices of household livelihood strategies among the different wealth categories. Multistage sampling which includes both purposive and random sampling was used to select 120 sample respondents. The Primary data were collected from randomly selected households based on probability proportional to size. Descriptive statistics, inferential statistics and an econometric model (Multinomial logistic regression) were used to analyze the data.  The study identified that agriculture alone and agriculture plus migration livelihood strategies are the two most pertinent livelihood strategies in the study area.  The multinomial logit model explores that out of the 15 explanatory variable: Agriculture alone livelihood strategy was determined by education level, credit access and receiving remittance, Agriculture plus nonfarm was affected by credit access, distance from market center and land holding and  Agriculture plus off farm was influenced by sex of household head,  credit access and remittance. The study suggested that Policy-makers need to work to promote livelihood diversification to minimize resource poor HH vulnerability. Keywords: Livelihoods, wealth category, Livelihood strategies, Diversification, migratio

Livelihood Diversification Determinants in the Teff Growing Area of East Shoa Zone of Oromia Region, Ethiopia

This study was proposed with the aim at identifying factors affecting livelihood diversification strategies in the teff farming system and opportunities to livelihood diversification. . The data were obtained from 148 sample household heads of three kebeles that were selected through multi-stage sampling techniques. The data were collected through both primary and secondary data collection methods. Descriptive statistics was applied to characterize the sample households' socio- economic, demographic, agro-ecological location and institutional factors. The finding of the result indicates that 62.8% of the total sample households depend solely on agriculture for their livelihood strategies, while the remaining 37.2% combine agriculture with other activities like non-farm and off-farm. The study also found that despite the available opportunities to household’s diversification of livelihood strategies.. Multinomial Logit model was employed in identifying the factors affecting rural household’s livelihood diversification strategies. The result indicates that among 16 hypothesized explanatory variables, 9 variables were found to affect household’s diversification of livelihood strategies. Accordingly, total family size, household head education level, dependency ratio, remittance receiving and access to irrigation facility have positive and significant effect on diversification of livelihood activities. However, sex of household head, total land holding, market distance, and agro-ecological location have negative and significant effect on diversification of livelihood activities. Therefore, the results of this study suggest that development interventions, policies and supportive services should be designed and strengthened to promote off-farm and non-farm livelihood activities in addition to agriculture to improve the overall wellbeing of the rural societies