17 research outputs found

    Productivity and efficiency heterogeneity among maize smallholder farmers in Ethiopia

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    AbstractMaize is the cheapest grain in Ethiopia, which is widely consumed by rural communities and low-income urban residents. As a result, the Ethiopian government has implemented various policy initiatives to increase its productivity. However, these policy initiatives have not contributed enough to improve maize productivity. This study utilized stochastic frontier analysis to investigate and analyze factors contributing to differences in productivity and efficiency among smallholder maize farmers in Ethiopia. The findings showed that the supply of inputs and technology significantly affected maize productivity. We found that women-managed households were more efficient than their male-managed counterparts. We also offered new insights into the non-linear effect of farmers’ education on their efficiency levels. Furthermore, we documented that households would benefit from a 14.40% productivity gain and 13.90% production cost savings if operating at full efficiency level. Land fragmentation and distance from the main market are key factors that have adversely affected the efficiency of smallholder maize farmers. Hence, policies that reduce land fragmentation and enhance rural market infrastructure development will enable Maize farmers to increase their efficiency and productivity

    Impact of business regulations on foreign direct investment inflows and economic growth in East African countries

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    AbstractContinuous improvement of the business environment is important for countries seeking to benefit from increased trade and investment through regional integration. Creating an enabling environment for businesses to thrive and expand has become a new concept in international development organizations, and a good business climate allows good ideas to take root, which leads to the creation of jobs and better lives for host countries. The main objective of this study was to investigate the impact of business regulations on FDI inflow and economic growth in East Africa region using data collected from the World Bank spanning from 2010–2019. The study finds that dealing with construction, enforcing contracts, getting credit, getting electricity, paying tax and protecting minority investors have a significant impact on FDI inflow in the region. While enforcing contracts, getting credit, protecting minority investors, resolving insolvency, starting a business and trade across borders have a significant impact on economic growth in the region. Moreover, each additional reform during 2010–2019 is associated, on average, with a 3.09% increase in FDI inflows and 2.24% increase in GDP in East African countries. The findings of this study will help policy makers in the region to establish a strong legal framework of business regulations to attract FDI inflow into their economies, to adjust their ease of doing business procedures to attract FDI to their economies and to promote regional economic growth. This will also assist investors in monitoring these key indicators to facilitate investment decisions in foreign countries

    Communities’ Livelihood Vulnerability to Climate Variability in Ethiopia

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    Ethiopia has experienced more than 10 major drought episodes since the 1970s. Evidence has shown that climate change exacerbates the situation and presents a daunting challenge to predominantly rain-fed agricultural livelihoods. The aim of this study was to analyze the extent and sources of smallholder famers’ livelihood vulnerability to climate change/variability in the Upper Blue Nile basin. We conducted a household survey (n = 391) across three distinct agroecological communities and a formative composite index of livelihood vulnerability (LVI) was constructed. The Mann–Kendall test and the standard precipitation index (SPI) were employed to analyze trends of rainfall, temperature, and drought prevalence for the period from 1982 to 2016. The communities across watersheds showed a relative difference in the overall livelihood vulnerability index. Aba Gerima (midland) was found to be more vulnerable, with a score of 0.37, while Guder (highland) had a relatively lower LVI with a 0.34 index score. Given similar exposure to climate variability and drought episodes, communities’ livelihood vulnerability was mainly attributed to their low adaptive capacity and higher sensitivity indicators. Adaptive capacity was largely constrained by a lack of participation in community-based organizations and a lack of income diversification. This study will have practical implications for policy development in heterogeneous agroecological regions for sustainable livelihood development and climate change adaptation programs

    Farmers’ preferences towards water hyacinth control:A contingent valuation study

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    Lake Tana is the most important freshwater lake in Ethiopia. Besides pressures on water quality resulting from urbanization and deforestation, the invasion of the exotic water hyacinth (Eichhornia crassipes) poses new threats to the ecosystem. Water hyacinth, endemic to South America, is widely considered as the world’s worst aquatic invasive weed. In 2011, the weed appeared on the northern shores of Lake Tana, expanding in south-eastern direction. The lake area affected by water hyacinth was last estimated in 2015 at 34,500 ha, which equals 16% of the total lake surface. In this research, the benefits of water hyacinth control and eradication for the rural population inhabiting the northern and north-eastern villages bordering Lake Tana, are investigated. In the area, the population largely depends on farming and fishing. An assessment of the total economic benefit of eradication was conducted. The stakeholder-centered approach led to measuring the willingness to contribute in labor and cash terms. Results showed smallholders in the study are willing to contribute over half-a-million euros annually. Costs of management actions can be weighed to the benefits, where further research is needed on the impact on other stakeholder groups. Moreover, wetland management should advance to explore multiple pathways in an integrated approach: water hyacinth control, water hyacinth utilization and sustainable waste water management

    Exploring Drivers of Livelihood Diversification and Its Effect on Adoption of Sustainable Land Management Practices in the Upper Blue Nile Basin, Ethiopia

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    Land degradation poses a major threat to agricultural production and food security in Ethiopia, and sustainable land management (SLM) is key in dealing with its adverse impacts. This paper examines the covariates that shape rural livelihood diversification and examines their effects on the intensity of adoption of SLM practices. Household-level data were collected in 2017 from 270 households in three drought-prone watersheds located in northwestern Ethiopia. We used the Herfindahl–Simpson diversity index to explore the extent of livelihood diversification. A stochastic dominance ordering was also employed to identify remunerative livelihood activities. A multivariate probit model was employed to estimate the probability of choosing simultaneous livelihood strategies, and an ordered probit model was estimated to examine the effect of livelihood diversification on the adoption intensity of SLM practices. In addition to mixed cropping and livestock production, the production of emerging cash crops (e.g., Acacia decurrens for charcoal, and khat) dominated the overall income generation of the majority of farmers. Stress/shock experience, extent of agricultural intensification, and agro-ecology significantly affected the probability of choosing certain livelihood strategies. Livelihood diversification at the household level was significantly associated with the dependency ratio, market distance, credit access, extension services, membership in community organizations, level of income, and livestock ownership. A greater extent of livelihood diversification had a significant negative effect on adopting a greater number of SLM practices, whereas it had a positive effect on lower SLM adoption intensity. Overall, we found evidence that having greater livelihood diversification could prompt households not to adopt more SLM practices. Livelihood initiatives that focus on increasing shock resilience, access to financial support mechanisms, improving livestock production, and providing quality extension services, while also considering agro-ecological differences, are needed. In addition, development planners should take into account the livelihood portfolios of rural households when trying to implement SLM policies and programs

    Farmers' preferences towards water hyacinth control : a contingent valuation study

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    Lake Tana is the most important freshwater lake in Ethiopia. Besides pressures on water quality resulting from urbanization and deforestation, the invasion of the exotic water hyacinth (Eichhornia crassipes) poses new threats to the ecosystem. Water hyacinth, endemic to South America, is widely considered as the world’s worst aquatic invasive weed. In 2011, the weed appeared on the northern shores of Lake Tana, expanding in south-eastern direction. The lake area affected by water hyacinth was last estimated in 2015 at 34,500 ha, which equals 16% of the total lake surface. In this research, the benefits of water hyacinth control and eradication for the rural population inhabiting the northern and north-eastern villages bordering Lake Tana, are investigated. In the area, the population largely depends on farming and fishing. An assessment of the total economic benefit of eradication was conducted. The stakeholder-centered approach led to measuring the willingness to contribute in labor and cash terms. Results showed smallholders in the study are willing to contribute over half-a-million euros annually. Costs of management actions can be weighed to the benefits, where further research is needed on the impact on other stakeholder groups. Moreover, wetland management should advance to explore multiple pathways in an integrated approach: water hyacinth control, water hyacinth utilization and sustainable waste water management
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