Structural change and poverty reduction in Ethiopia: Economy-wide analysis of the evolving role of agriculture

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dc.creatorDorosh, Paul A.
dc.creatorThurlow, James
dc.creatorKebede, Frehiwot Worku
dc.creatorFerede, Tadele
dc.creatorTaffesse, Alemayehu Seyoum
dc.date2018-09-06
dc.date2024-06-21T09:05:04Z
dc.date2024-06-21T09:05:04Z
dc.date.accessioned2026-06-27T15:13:02Z
dc.descriptionThis paper explores these issues for Ethiopia utilizing an economy-wide computable general equilibrium (CGE) model based on a detailed social accounting matrix (SAM). We present the results of four alternative investment scenarios -- faster investment in i) cities; ii) crop agriculture; iii) the rural non-farm sector and agro-industry; and iv) livestock. The simulations suggest that investments in cities generate faster economic growth and structural transformation. However, given the large share of the population with incomes linked to agriculture and the rural economy, investments in the rural economy are likely to continue to be more pro-poor than urban public investments through the mid-2020s. After the mid-2020s, investments in cities become more pro-poor. In short, though rapid economic growth and structural transformation have diminished the relative importance of the agricultural sector in Ethiopia’s economy, continued public investments in agriculture and the broader agri-food system remain crucial for equity and poverty alleviation in Ethiopia, as well as for reducing food import dependency.
dc.formatapplication/pdf
dc.identifierhttps://hdl.handle.net/10568/145801
dc.identifier.urihttp://hdl.handle.net/123456789/97965
dc.languageen
dc.publisherInternational Food Policy Research Institute
dc.publisherEthiopian Development Research Institute
dc.rightsOpen Access
dc.sourceDorosh, Paul; Thurlow, James; Kebede, Frehiwot Worku; Ferede, Tadele; and Taffesse, Alemayehu Seyoum. 2018. Structural change and poverty reduction in Ethiopia: Economy-wide analysis of the evolving role of agriculture. ESSP Working Paper 123. Washington, DC and Addis Ababa, Ethiopia: International Food Policy Research Institute (IFPRI) and Ethiopian Development Research Institute (EDRI). https://hdl.handle.net/10568/145801
dc.subjectrural urban relations
dc.subjectpublic investment
dc.subjecteconomic growth
dc.subjectagricultural sector
dc.subjectcomputable general equilibrium model
dc.subjectpoverty
dc.titleStructural change and poverty reduction in Ethiopia: Economy-wide analysis of the evolving role of agriculture
dc.typeWorking Paper

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Instituto Internacional de Investigación sobre Políticas Alimentarias (IFPRI)