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As in most developing countries, farm households in Ethiopia are often engaged in several income diversification activities to mitigate several risks and uncertainties faced by agriculture and address poverty and food insecurity. The benefits of income diversification have been widely documented in the literature. However, little econometric evidence exists on the drivers of income diversification among farm households in Ethiopia. The paper addresses this information gap by investigating the drivers of choice decisions and intensity of income diversification among farm households using data collected from a sample of 385 randomly selected households from the Ethiopian central highlands. Unlike previous studies, our multivariate probit model results show that the choice decision of farm households is significantly interrelated and drivers had heterogeneous effects on the choice decision of households. The findings revealed that age, education, livestock, land, food shortage, agricultural commercialization cluster (ACC), investment in sustainable farming practices, rainfall, and maximum temperature significantly impacted the choice of income diversification. The fractional response logit model results revealed that age, livestock, food shortage, joint household decision‐making, ACC, income, rainfall, and study site significantly impacted the intensity of income diversification. The descriptive results revealed that most farmers (67%) tend to have a more diversified portfolio of income including off‐farm, forest, non‐farm, livestock, crop, and other sources, and the intensity of diversification ranges between 0 and 0.76. The study also finds the presence of both synergies and trade‐offs in different types of diversification. We suggest that there is an urgent need to improve the ways of income diversification among farm households to both the sustainability of small farms and ensure food security. [ABSTRACT FROM AUTHOR]

Using the new economics labor migration theory as a theoretical framework and the multinomial treatment effects negative binomial regression as an analytical model in southern Ethiopia, this study investigated the effects of rural out-migration on the intensity of agricultural technology adoption. In the year 2021, data were collected from 415 sample houses using stratified random sampling. Regression analysis showed that while the influence of migration from rural to urban areas is negligible, participation in international migration greatly increases the likelihood of technology adoption in rural families by 38.9%. The intensity of agricultural technology adoption by rural households is negatively and significantly correlated with male-headed households and household age, while the frequency of extension visits, non-farm participation, saving, membership in cooperatives, sales of livestock, and tropical livestock unit are positively and significantly related to the intensity of agricultural technology adoption. The outcome is consistent with the labor migration theory's risk and credit hypotheses. To encourage the adoption of agricultural technology and stop the recent surge of rural out-migration in southern Ethiopia, policymakers should provide access to capital, public services, and viable off-farm employment in rural areas. [ABSTRACT FROM AUTHOR]

Background: Rapid population growth in urban areas resulted to high demand of urban land in metropolitan towns because of which town administrators spurred to incorporate peri-urban areas in to urban administrations to meet the rising demand. This problem often results in eviction of households originally residing in peri-urban areas from their farmlands, resulting in loss of livelihoods. Objective: The purpose of this study was to examine the inequality in consumption expenditures prevailing among displaced and non-displaced farm households in metropolitan towns of Amhara National Regional State, Ethiopia. Material and Methods: Deciles ratio, Gini coefficient, and Generalized Entropy Inequality Indices used to examine the prevailing inequality in consumption expenditures among displaced and non-displaced farm households' in study areas. About 430 households (183 displaced and 247 non-displaced) sampled through a multi-stage purposive and random sampling procedure. Results: The results of the deciles distribution revealed that large segment of the displaced farm households were concentrated in the poorest deciles while the non-displaced farm households were concentrated in the richest deciles. The highest recorded Gini coefficient was for displaced farm households as compared to the non-displaced farm households. Similarly, the result of General Entropy (GE) inequality decomposition showed that the highest registered consumption expenditure inequality was for displaced farm households at mean log deviation GE (0) as compared to the non-displaced farm households. Conclusions: The overall inequality measures illuminated that urban expansion brought a dramatic increase in the concentration of poverty and inequality in consumption expenditure for displaced farm households compared to non-displaced farm households. Therefore, the government and other stakeholders should design sustainable rehabilitation programs of households evicted from their farmlands with full packages and revise the meager land compensation schemes. [ABSTRACT FROM AUTHOR]

Background: In Ethiopia, the land allocated for urban expansion is taken from farming communities residing in the peripheries of towns and cities. Therefore, this decision strongly affects the livelihood of local communities living at peri-urban areas. Objective: The purpose of this study was to identify the livelihood strategy choices in peri-urban communities of Hossana town, Hadiya Zone, Southern Ethiopia and factors affecting them. Materials and Methods: A household survey research design was conducted using a semi-structured questionnaire by interviewing 369 households. Qualitative and quantitative data were collected from primary and secondary sources. In addition to household interview, focus group discussion, key informant interview, transect walk and personal observation were used as data collection tools. The study employed multivariate probit model to identify factors affecting choice of livelihood strategies in peri-urban local communities. Results: Model results showed that dependency ratio, active labor force in the family, sex of household head, educational levels of household heads, annual total income, market distance, household asset ownership, mass media exposure, achievement motivation, information seeking behavior, distance to public transport, total cultivated land, livestock (other than ox) and extension contact significantly affected choice of livelihood strategies. Conclusion: From the results we can conclude that agriculture, cottage/small scale industries, service, migration and other livelihood strategies are used as sources of income in peri-urban communities of Hossana town and are affected by different socio-economic, demographic, institutional, information and psychological factors. Therefore, it is necessary to give attention to those factors which positively affect agriculture, cottage/small scale industries and service and negatively affect migration and other livelihood strategies. [ABSTRACT FROM AUTHOR]

Background: Ethiopia has comparative advantages in the production of exportable spices due to existing rich genetic resources, diverse agro-ecological condition and abundant arable land and labour. However, despite their high potential and opportunities for export, most spices including turmeric and korarima are not fully utilized. Objective: This study was intended to analyze the determinants of export performance of major spices (turmeric and Korarima) in Ethiopia. Material and Methods: The random effect GLS gravity model was selected as an analytical tool to estimate the determinant of major spices export performance between Ethiopia and nine sampled spices trade partners using annual panel data collected for a period of 2005 to 2015/2016. Results: The results indicated that Ethiopia's population, foreign direct investment, real exchange rate and institutional quality, the importers' GDP, GDP per capita and population, geographical distance and the dummy variables (COMESA membership and sharing common borders) had significantly affected turmeric and Korarima export performances, at different level of significance level, with their expected sign or effect. However, the variables intuitional quality and being COMESA membership were found to have unexpected negative influences on the export performance of major spices (turmeric and Korarima). Conclusion: The finding of the study implied that there is a need to formulate policies and strategies that would promote institutional quality, improve supply capacity, attracting foreign direct investment, strengthen trade liberalization, deepening economic integration and targeting export destination that could reduce transportation costs in order to improve the export performance of those spices. [ABSTRACT FROM AUTHOR]

Productivity of what in Ethiopia is below potential. This could be attributed to a number of factors among which is lack of knowledge on how to use new wheat crop production technologies. Therefore, this study was conducted to estimate the technical efficiency of smallholder wheat producers and identify its determinants in Soro district of Hadiya zone, southern Ethiopia. Cross sectional data from a random sample of 125 wheat producing farmers were collected during the 2015/16 main production season and analyzed. A Cobb-Douglas Production Function and Stochastic Frontier Analysis were employed to achieve the objectives. The results revealed that the mean technical efficiency of wheat producing farmers was 72%. The discrepancy ratio gamma (γ), which measures the relative deviation of output from the frontier level due to inefficiency, was about 63%. This implies that about 63% of the variation in wheat production among the sample farmers was attributed to technical inefficiency effect. The estimated inefficiency parameters showed that age, education level, land ownership, fertility status of the plots and extension contact negatively and significantly affected technical inefficiency of wheat production showing that an increase in the value of the variable attached to the coefficient means the variable negatively contributed to inefficiency level or conversely it contributed positively to efficiency levels. However, land fragmentation positively and significantly affected technical inefficiency showing that this variable has a negative influence on technical efficiency. [ABSTRACT FROM AUTHOR]

Abstract Biological invasions can induce trajectories of changes that make ecosystems fragile and less reliable in providing services and goods. Here we set out to assess the economic value of dry land ecosystem services affected by the invasive tree Prosopis, which was originally introduced in Africa and elsewhere for providing firewood, animal fodder and other services to rural people. Based on choice experiment method, we estimated the economic values of dry land ecosystem services affected by Prosopis in the heavily invaded Afar region, Ethiopia and Baringo County, Kenya. Including labor and cash contributions as payment attributes, a random parameters logit model was employed for analyzing households' preferences for the affected ecosystem services. We found that, despite the services provided by Prosopis, households from both regions were willing to pay for its management primarily driven by biodiversity and water. WTP was on average higher in Afar (USD 50.42/year) than in Baringo (USD 37.74/year), which may be because the ecosystems in Afar were less degraded prior to the invasion by Prosopis than in Baringo and that charcoal production in Afar is officially prohibited. Our results indicate that the costs imposed by the deliberately introduced Prosopis outweigh its benefits in both Afar and Baringo. Highlights • Using choice experimental data, ecosystem services economic valuation of Prosopis invasion was conducted. • Households from Afar were willing to contribute USD 50.42 per annual for Prosopis invasion management options that will improve biodiversity, water availability, seasonal mobility and tourism flow. • Households from Baringo were willing to contribute USD 37.74 per annual for Prosopis management option(s) that will improve biodiversity and water availability. • In both areas, microclimate regulation was acknowledged as a current ecosystem service by Prosopis. [ABSTRACT FROM AUTHOR]

The debate among the academia, development practitioners, policy makers and large communities on the viability of pastoral sedentarization as an adaptation mechanism against climate change stresses in the drylands remains inconclusive. This study empirically investigated the livelihood and food security impact of government's sedentarization program implemented in the drylands of Ethiopia since 2002 by using the propensity score matching method. Results show that participation in the sedentarization program is significantly and positively influenced by education, road distance and extension services, but negatively affected by family size, livestock owned and town distance. Moreover, the results show that the program has significantly increased expenditure on education and sources of income by 293% and 40.49%, respectively, but significantly decreased percentage expenditure on food by 13.45%. The groups are markedly alike with regard to their annual per capita income, expenditure on health and dietary diversity. This study concludes that pastoral sedentarization improved the livelihood of participants, but worsened their food security situation with its overall welfare effect remaining indeterminate. [ABSTRACT FROM AUTHOR]

• The impact of smallholder crop commercialization on child undernutrition outcomes (stunting, underweight and wasting) was modeled using generalized propensity score method and fixed effects model. • We also examined the impact pathways from commercialization to child undernutrition outcomes. • Commercialization significantly improved short-term child undernutrition outcomes, underweight and wasting, but not the long-term child undernutrition, stunting. • Commercialization did not lead to substitution of purchased foods for own-produced foods, but adversely affected women's control of crop income from commercialization. • Findings provide evidence for significant differences in the estimated effects across time and space, commercialization doses, age, asset ownership and gender. Smallholder commercialization as nutrition-sensitive agricultural policy has been advocated by many researchers and policy makers though its effect on reducing child undernutrition remains inconclusive. Generalized Propensity Score model which allows for continuous treatments, capture selection bias and observed confounders was applied to estimate the causal relationship between smallholder crop commercialization levels and child undernutrition. Fixed effects model was used to control for the unobserved time-invariant confounders. Impact transmission channels were analyzed by looking at the role of income, gender and the possible substitution effects between the consumption of own-produced and purchased foods. Results provide strong evidence of heterogeneous child undernutritional impacts of smallholder commercialization. Estimates of the dose–response functions reveal that the average levels of underweight and wasting increase with lower and higher intensities of commercialization, but decreases with medium commercialization intensities, with the overall significant beneficial effects. On the other hand, the average level of stunting increases with lower and higher levels of commercialization, but declines with the medium commercialization doses with the overall effect remaining insignificant. Results also provide significant differentials in the estimated effects across time and space, commercialization doses, age, asset ownership and gender. Hence, regional, locational, infrastructural, temporal, gender and age sensitive policies need to be designed to increase smallholder farmers' commercialization and reduce child undernutrition which is prevalent in the country. [ABSTRACT FROM AUTHOR]

Improving production efficiency remains as a plausible means of increasing productivity when resource reallocation, and the creation and adoption of new technologies are limited. Technical, allocative and economic efficiencies are derived from a sample of smallholder vegetable farmers in Ethiopia using parametric and non-parametric methods. The results reveal that the two methods yield similar estimates and the existence of substantial inefficiencies in production as well as efficiency differentials among farmers. The analysis of the determinants of efficiency of vegetable production using regression models show that low asset ownership, illiteracy, large family size, inadequate extension contacts, small farm size, age, low off/non-farm income and high consumer spending are the major socio-economic factors causing inefficiency of vegetable production in the study areas. A comparison of the market-driven (vegetables) with the whole-farm (crops and livestock) production efficiency indicates that lower economic efficiency scores for the former might be related to the limited access to capital markets, high consumer spending, and large family size. [ABSTRACT FROM AUTHOR]

This study elicits farmers' preferences and estimates their willingness to pay (WTP) for selected small ruminant market facilities in Ethiopia. Data were generated using choice experiments from 360 randomly selected farmers. Using the generalized multinomial logit (G-MNL) model, we show that temporary holding barn, toilets, veterinary clinic, watering troughs and feed shops are the facilities small ruminant keepers are most interested in central Ethiopia. In relative terms, the farmers are willing to pay a premium of 1.77, 1.74, 1.23, 1.09, 2.0 and 2.27 times higher for holding barns than for watering troughs, feed shops, veterinary clinics, toilets in the markets, fenced market sheds and unfenced market sheds, respectively. This evidence informs the national agenda of transforming the livestock sector and in particular the livestock market and marketing development initiatives of the country. [ABSTRACT FROM AUTHOR]

Industrial policy becomes one of the most debated issues in developing countries. Developing countries still need to advance their industries and accelerate the economic transformation through implementing proper industrial policies supporting this endeavor. This study examines the impacts of industrial policy on the regional economy in Ethiopia. The data required to construct Oromia regional Social Account matrix (SAM) come from Central Statistical Agency of Ethiopia (CSA), Ministry of Finance and Economic Development (MoFED), Oromia Finance and Economic Development Bureau (OFEDB) and other organizations. The use of Oromia regional SAM provides databases for calibration of the Computable General Equilibrium (CGE) models used in this study to yield significant ex-ante expectations of industrial policy impacts and provide a rich set of findings. The results indicate that the industrial policy has a positive impact on the components of the regional economy. In particular, the outcomes under full capacity scenario had significant impacts on agroprocessing industries demand for agricultural, agro-processed, manufactured and industrial commodities. Capital stock injections into the regional economy significantly enhance the output of other manufacturing and industries by about 63% when they work under capacity. If they worked at their full capacity, industrial policy would significantly raise the output of other manufacturing and industries by about 122%. The study found that simulation 1 and 2 would have higher impact on urban than rural households’ consumption of the commodities. Of all the export commodities, the industrial policy would have the highest impact on manufactured export commodities. The study implies that industrial policy is a key for industrialization and fast economic growth in emerging economies if the industries operate at their full capacity. Industrial policy is quite important as African continent is striving for catching up and achieving job-creation through structural transformation. The study suggests a combination of incentives with a disciplined approach to develop industries and enable industries to operate at their full capacity. [ABSTRACT FROM AUTHOR]

Livestock markets and marketing are crucial components of the agricultural transformation agenda in Ethiopia. There is, however, little or no scientific evidence for the demand for livestock market facilities to guide the national effort. Using panel data, we estimate the effect of livestock market shed provision on market participation and revenue from small ruminants in Central Ethiopia. Experimental market sheds were constructed in nine markets, with baseline and follow‐up surveys conducted with a sample of 50 marketers from each of 16 markets. We employ different formulations of a difference‐in‐differences (DiD) model, including a combined estimation with propensity score matching. Our results show that provision of market sheds significantly increase farmers' earnings from small ruminant sales. DiD estimated with a matched sample also shows that market participation increased among smallholder farmers close to the markets with sheds. Our findings support the investment in market facilities in the central highlands and other comparable socio‐economic settings in Ethiopia. [ABSTRACT FROM AUTHOR]

Smallholder farmers in Ethiopia are characterized by low crop production and productivity. As a result, production is primarily for self-consumption with a possibility of supplying only a small part of total output to the local markets. Despite their undisputed importance, most studies in Ethiopia focused on smallholder farmers' commercial orientation and analyzed the determinants of the proportion of output sold in crop markets and failed to analyze the relationship between crop productivity and commercial orientation. Therefore, this research was conducted to elucidate synergies existing between commercial orientation and total factor productivity (TFP) among smallholder farm households in the highlands of Eastern Ethiopia. The study was conducted in four districts: two districts, namely, Gurawa and Haramaya were selected from eastern highlands of the region, and two districts, namely, Tullo and Habro were selected from eastern Hararghe highlands). A total of 385 sample household heads were selected randomly and interviewed using a semi-structured questionnaire to elicit data pertaining to crop production input and output market during the year 2015. A two-stage least squares (2SLS) regression model was applied for the analysis. Results of the 2SLS regression indicated that total factor productivity was strongly and positively influenced by the endogenous commercial orientation index. In addition, the number of oxen owned, market distance, extension visits, amount of manure used, quantity of labor used, and location dummy influenced TFP. [ABSTRACT FROM AUTHOR]

• Nested sampling helps to capture socio-ecological systems integrated information. • Integrated information enhances sound environmental decision-making processes. • Local perceptions on invasion effects did not correspond to Prosopis cover. • Socio-economic and socio-cultural factors determine stakeholders' perceptions. [ABSTRACT FROM AUTHOR]