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

Inflation in the 21st Century: Taking Down the Inflationary Straw Man of the 1970s

This overview of the history of, and future prospects for, undesirable levels of price inflation in the U.S. economy concludes that concerns raised in 2021 by several well-known economists and analysts – regarding the prospects for accelerating levels of inflation as a result of pandemic-era and post-pandemic fiscal and monetary policy (enacted and proposed) – is misplaced. The wisdom of continuing expanded fiscal policy from late 2021 onwards is supported by an analysis of the prospects for future inflation in terms of both (i) the shortfall in aggregate domestic demand relative to existing endogenous and exogenous supply; and (ii) the metrics of untapped existing sources of additional supply of labor, capital and resulting production to offset incremental demand. To eliminate the issue from comparative association, the paper draws a multi-pronged distinction between the conditions of the early 21st century and those of the latter half of the 20th century that yielded the painful inflation crises of the 1970s. The analysis also includes a comparison of earlier periods dominated by cyclical core goods inflation, to the 21st century history of below-target inflation being supported primarily by service sector inflation in contract rents related to capital assets and in service sectors heavily influenced by third-party payment systems. The conclusion reached is that the four decades of relative fiscal austerity in the United States, coupled with accelerating globalization and technological development, have produced a disinflationary-to-deflationary tendency – extending from prices to labor incomes – that only substantial amounts of targeted federal spending can restore to equilibrium. With sustained levels of accelerating inflation being very unlikely. The paper is written in a style designed to be accessible to those who are not necessarily practicing economists, avoids complex mathematics in favor of graphic explanations, and eschews (or explains) terms that are not familiar to those with only a basic understanding of macroeconomic issues

Climate Change & Food Security Vulnerability Assessment. Toolkit for assessing community-level potential for adaptation to climate change

This CCAFS Working Paper presents a participatory methodology that has been designed to provide organizations with the tools to understand the interrelations between climate impacts, food systems and livelihood strategies at the local level, while taking into consideration traditional /indigenous knowledge of the participating community. The toolkit developed applies a multidimensional view of the vulnerability of livelihood strategies to climate change, with a focus on differentiated access and entitlements to livelihood resources and food for different groups within a locality or community (often determined according to gender, ethnicity and socioeconomic class). It includes step by step instructions on how to implement participatory tools that were adapted to answer the following questions: Why are people vulnerable? How are they vulnerable to climate change? What consequences does this have for their food security? Implementing this methodology will provide an initial understanding of the local context and vulnerability profiles, which, combined and triangulated with other sources of information (meteorological data, socio-economic indicators etc.), feeds into the process of identifying adaptation measures

India as a global security actor

Thanks to sustained economic growth and key investments in military capabilities, India will face growing demands from within and the international community to seek and play a greater role in global security affairs. The values and interests likely to guide India’s future behavior will be a mixture of old and new, eastern and western. India’s international aspirations have an important pre-history, covered in this chapter’s first section where non-alignment, as idea and practice, is explored for its enduring significance. India’s relevance as a security actor is assessed in terms of its activities and capacity to influence developments within two security zones of major contemporary importance: Afghanistan and the Indian Ocean. Finally, a section on the constraints and challenges examines India’s ability to navigate a multi-polar world, the fallout and gains of nuclearization, the 2008 Indo-US nuclear deal, as well as ‘the weaknesses from within’ in terms of human security

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

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

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

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