9 research outputs found
Sector Linkages and Industrial Policy Effects on Regional Wheat Value Chain Actorsâ Outputs and Consumption in Ethiopia
The article estimates sector linkages, output, income and employment multipliers. It also measures the effects of industrial policy on income and consumption and wheat factoryâs outputs in aggregate terms. This study indicates that non-agro processing industry has relatively a weaker linkage with the rest of regional economy. The study found that the impacts, measured by social accounting matrix multiplier analysis, agricultural and service sectors have relatively the highest output, income and employment multipliers. Computable general equilibrium model result indicates that shock injections into regional wheat value chain brought about much higher changes in outputs of wheat producers and wheat processing factories, urban and rural household consumption of wheat and wheat product. The agro-processing industrial policy should be set up on the basis of balanced development of only limited sectors along the value chain to impact the wheat economy significantly and ensure higher productivity in the chains. Keywords: Linkages, industrial policy, multiplier effects, impact, wheat value chai
Market Integration For Oxen Prices Using Vector Error Correction Model (Vecm) In Ethiopia
Abstract: This study attempts to analyse the degree of spatial domestic oxen market integration; and examines price adjustment and prices causality. The result of Augmented Dickey Fuller (ADF) test indicates that the three variables were non-stationary at their levels, and stationary at their first difference. The Johansenâs co-integration test indicated that two co-integrating vectors implying that two oxen markets were linked together. The result of the VECM reveals that estimated adjustment vector coefficients have the correct signs (negative) at 1 % significant level and imply moderate speed of price adjustment to ward equilibrium
Governance structures in wheat supply chains and their impacts on productivity and profitability of wheat producers in Ethiopia
This study aims to supplement the literature on the factors affecting wheat producer productivity and profitability by focusing on the role of governance structures and asymmetric information â an issue that is rarely discussed in developing countries. The study thoroughly explores the effect of governance structures and asymmetric information to model a hypothesis for Ethiopia. The study area enables an exemplary case study as it is one of the top wheat-producing areas in both Ethiopia and all of Africa. The study area has also been registered as a wheat belt region in Sub-Saharan Africa. This study used personal interviews to collect primary data from actors. Mixed sampling techniques (i.e., random, census, and purposive) were used to select sampling units. Multiple linear regression models were used to analyse the data. The results show that governance structures, Farm-gate transactions, and asymmetric information have a significant effect on wheat productivity and profitability. Asymmetric information significantly reduces the profit and yield of wheat producers. The study implies that the government should apply a policy related to institutional arrangements to enhance productivity and profitability in wheat supply chains
Economic freedom, institutional quality, and manufacturing development in African countries
ABSTRACTThe study examines the long and short-run impact of different explanatory variables on manufacturing development the time span from 1996 to 2021. The results indicated that economic freedom, FDI inflows, financial development, political instability, corruption control, government effectiveness, the rule of law, voice and accountability, and regulatory qualities significantly expand industrialization at the 1% level in the short-run, whereas they significantly reduced industrialization at the 1% level in the long run. African manufacturing transformation is significantly and positively determined by income per capita in the long and short run. The study suggests that policy measures must be taken to combat corruption and improve government effectiveness to achieve manufacturing growth. Maintaining a sound individual and whole institutional quality is very crucial for manufacturing development in the short run
Assessment of the relationships between livestock production policies implementation and knowledge integration for the promotion of food security in Ethiopia
AbstractThis paper proposes a modelling approach to bridge policy gaps and provide decision-makers with a useful tool for more focused decisions in livestock supply chains. This approach, which is put into practice through institutional arrangements, has the potential to empower the role of coordination and cooperation in the livestock supply chain, link stakeholders/entrepreneurs to vertical upstream and downstream direct and indirect actors. While there are substantial contributions to the detail of this paper, one of its most important contributions lies in introducing public-private partnerships as a driver of livestock economic development. This study evaluated the impact of integrated knowledge on production, rural householdsâ income, and rural householdsâ food security using Computable General Equilibrium (CGE) models. The database used in social accounting matrix (SAM) is also used as the base year data for policy simulations in the CGE models. The result indicates that adoption of scientific-technical breed selection and veterinarian knowledge could enable the region to obtain higher livestock production and income, thus leading to higher food security than region with indigenous and integrated knowledge adoption. The results indicate that integrated knowledge policies have more impact on livestock production, rural household income, and food security than indigenous knowledge policy implementation alone. The policies have a greater impact on the rural householdsâ income and food security in the merger case than in the indigenous technical simulation case. The findings imply that livestock production policiesâ implementation and knowledge integration are still necessary for achieving food security, and eradicating poverty
Potato and Tomato Supply and Yield Responses to Policy in Ethiopia
Improving the productivity and profitability of farming activity is considered the key pathway out of poverty for many rural households. Agricultural productivity can be achieved through improving technical progress and increasing irrigation practice utilization. The motivation of this study is to figure out the underlying reasons for the low inelastic potato and tomato supply responses in the short and long-run. The paper attempts to estimate the responsiveness of potato and tomato yield and supply to demand, irrigated area, technical progress and industrial policy in Ethiopia. The study uses the error correction model and VARs with the aid of time series data. The results indicate that tomato supply is found to be responsive to demand signal and industrial policy shock in the short run but not to price incentive in the short-run as predicted. Tomato yield is responsive to demand signal, price incentive and industrial policy shock in the shortârun. The numerical magnitude of error correction coefficient for potato yield is 0.88 indicating about 88% of disequilibrium is corrected in a year. The implied departure from equilibrium is about 12%. Interventions in increasing irrigated area and the technical progress in potato and tomato production impact yield and output significantly. The speeds of adjustment towards equilibrium for tomato yield and output are quite fast, it points towards the highest response to technical progress. The results give emphasis to the need to strengthen technical progress and irrigation water supply through effective policies
Supply analysis in wheat industry: contributions of value chain analysis in Ethiopia: Cases from Arsi and East Shewa Zones in Oromia National and Regional State
In this paper an attempt is made to analyse factors affecting supply issues at different functional nodes of Wheat Value Chain (WVC), flow of commodities and roles of cooperatives and other institutions in supply issues. Sources of primary data include input suppliers, service providers, wheat producers, traders, cooperatives, wheat processing industries. Interview schedules, informal group discussions and observations were used to collect primary data from actors in wheat value chain. The sample design was multiple sampling stages, zones as first stage sampling unit, districts as second stage sampling unit, kebeles as third stage sampling unit and key WVC actors as fourth stage sampling unit. Factors of supply issues in wheat industry has been analyzed with the help of descriptive statistics, qualitative methods and stepwise multiple regression (OLS). The result indicates that cooperative as actor has failed to supply adequate input, namely pesticide and herbicide caused input retailers to manifest their opportunistic behavior and exploit asymmetric information on input quality at small shops and spot market, which in turn, declined wheat productivity. Wheat producerâs marketed surplus significantly increased with land size, fertilizer, extension service, and distance from main road, producerâs WVC function, and decreased with crop rotation. About 90% of wheat processing industries ranked shortage of raw materials as the number one barrier for wheat product supply. Concerned body should work on technology and extension service supply and coordination to address low raw materials and final products supply at each functional node of wheat value chain
Determinants of supply in the wheat value chain of Ethiopia
The purpose of this paper is to investigate the factors affecting the quantity of commodity supply in the wheat value chain (WVC) in Ethiopia. This study used personal interviews to collect primary data from WVC actors by using surveys. The data collected came from input suppliers, wheat producers, wholesalers, wheat processors and support institutions. It also made use of empirico-inductive approach and focused synthesis to conceptualize commodity supply and coordination. Mixed sampling techniques (random, census and purposive) were applied to select sampling units. Qualitative analysis, descriptive statistics and multiple linear regression models were used to analyze the set of data. The paper finds that the marketed surplus of wheat significantly increases with landholding, fertilizer used, extension services and the costs of wheat production and negatively associates with information asymmetry and crop rotation. The strategic interactions influence the quantity of a commodity that actors supplied to the markets. It adds new knowledge to the existing theoretical and empirical literature. It may be recommendable to target the efforts in order to improve extension services, reduce information asymmetry and encourage the utilization of wheat technologies to enhance wheat supply.Keywords: Determinants, Marketed surplus of wheat, Commodity supply, Information asymmetry, Wheat value chai
Governance structures and incentives in the wheat value chain in Ethiopia
Empirical studies on the effects of governance structures on incentives have still received little attention in the wheat value chain research of developing countries. The purpose of this paper is to investigate the effects of governance structures on actorsâ incentives in different functional nodes of the wheat value chain. This study used personal interviews to collect primary data from input suppliers, wheat producers, wholesalers, wheat processors and co-operatives. Mixed sampling techniques (i.e. random, census and purposive) were applied to select sampling units. Descriptive statistics and the ordered logit model were used to analyse the data. This paper found that governance structures, opportunistic behaviour, asymmetric information and trust influence actorsâ incentives in each functional node of the wheat value chain. Specifically, extension services, governance structures, power relations and price information have significant and positive effects on producersâ price incentives. The study provides pioneering evidence of the effects of governance structures on incentives in each functional node of the value chain. The study adds new knowledge to the existing empirical knowledge. The results recommend government to use effective policy interventions to reduce opportunistic behaviours and asymmetric information, and to adopt incentive strategies to encourage investment, and increase productivity and profitability