Agricultural growth linkages in Ethiopia: Estimates using fixed and flexible price models

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dc.creatorDiao, Xinshen
dc.creatorFekadu, Belay
dc.creatorHaggblade, Steven
dc.creatorTaffesse, Alemayehu Seyoum
dc.creatorWamisho, Kassu
dc.creatorYu, Bingxin
dc.date2007
dc.date2024-11-21T09:50:15Z
dc.date2024-11-21T09:50:15Z
dc.date.accessioned2026-06-27T15:33:57Z
dc.descriptionAccelerating growth and poverty reduction, and the ultimate achievement of structural transformation, are the critical policy challenges in present day Ethiopia. This paper examines relevant growth options in terms of their impact on overall growth and poverty reduction in the country. It deploys a fixed-price semi-input-output model and a flexible-price economy-wide multi-market model for that purpose. The paper finds that agricultural growth can induce higher overall growth and faster poverty reduction than non-agricultural growth, although the latter can also have large growth effects in some cases. Among sub-sectors within agriculture, staple crops have stronger growth linkages. Decomposition of these effects also reveals that consumption linkages are much stronger than production linkages, i.e., the impact of increased consumption demand due to growth (agricultural and non-agricultural) is much larger than that of the corresponding expansion in input demand. Moreover, non-agricultural sectors have to grow in order to match growing supply of agricultural products and increasing demand for non-agricultural products. Otherwise, falling relative prices of agricultural products may dampen the realized gains in growth and poverty reduction.
dc.formatapplication/pdf
dc.identifierhttps://hdl.handle.net/10568/160198
dc.identifier.urihttp://hdl.handle.net/123456789/107981
dc.languageen
dc.publisherInternational Food Policy Research Institute
dc.rightsOpen Access
dc.sourceDiao, Xinshen; Fekadu, Belay; Haggblade, Steven; Taffesse, Alemayehu Seyoum; Wamisho, Kassu; Yu, Bingxin. Agricultural growth linkages in Ethiopia: Estimates using fixed and flexible price models. IFPRI Discussion Paper 695. International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/160198
dc.subjectpoverty reduction
dc.subjectagricultural growth
dc.subjectagricultural products
dc.subjectprices
dc.titleAgricultural growth linkages in Ethiopia: Estimates using fixed and flexible price models
dc.typeWorking Paper

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Instituto Internacional de Investigación sobre Políticas Alimentarias (IFPRI)