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The impact of micro-irrigation on households’ welfare in the northern part of Ethiopia: an endogenous switching regression approach

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  • Gebrehiwot, Kidanemariam G.
  • Makina, Daniel
  • Woldu, Thomas

Abstract

The paper uses an endogenous switching regression model to measure the impact of participation in micro-irrigation development on households’ welfare. The model takes into account selection bias associated with programme participation and endogeneity problems often encountered in most programme evaluations. A total of 482 households (195 irrigation users and 287 non-users) were used to generate all the necessary variables. To capture the impact of the irrigation on household welfare, two indicators were considered, namely household farm income (Y) and household fixed asset formation (F) (evaluated at market price during the survey period). The results show a positive and significant impact of irrigation use on the two outcome variables: income by 8.8 per cent and asset formation by 186 per cent as compared to non-users. This shows how important the micro-irrigation schemes are in improving the welfare of poor farmers in the research areas. Furthermore, the empirical results show that the probability of using one of the water sources (irrigation scheme) is associated with farm experience (age as proxy), farmer-to-farmer contact (the existence of an irrigation user neighbour), family size, the state of credit constraint, the number of visits by extension agents and the cost of irrigation development. As a robustness check, different models were applied and results were found consistent, both qualitatively and quantitatively.

Suggested Citation

  • Gebrehiwot, Kidanemariam G. & Makina, Daniel & Woldu, Thomas, 2017. "The impact of micro-irrigation on households’ welfare in the northern part of Ethiopia: an endogenous switching regression approach," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 119(3), December.
    • Handle: RePEc:ags:stagec:266797
    DOI: 10.22004/ag.econ.266797
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    References listed on IDEAS

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    1. Arega Alene & V. Manyong, 2007. "The effects of education on agricultural productivity under traditional and improved technology in northern Nigeria: an endogenous switching regression analysis," Empirical Economics, Springer, vol. 32(1), pages 141-159, April.
    2. Bhattarai, M. & Sakthivadivel, R. & Hussain, Intizar., 2002. "Irrigation impacts on income inequality and poverty alleviation: Policy issues and options for improved management of irrigation systems," IWMI Working Papers H029639, International Water Management Institute.
    3. Asfaw, Abay & Admassie, Assefa, 2004. "The role of education on the adoption of chemical fertiliser under different socioeconomic environments in Ethiopia," Agricultural Economics, Blackwell, vol. 30(3), pages 215-228, May.
    4. David W. Carter & J. Walter Milon, 2005. "Price Knowledge in Household Demand for Utility Services," Land Economics, University of Wisconsin Press, vol. 81(2).
    5. Awulachew, Seleshi Bekele, 2007. "Water resources and irrigation development in Ethiopia," IWMI Working Papers H040631, International Water Management Institute.
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    1. Markose Chekol Zewdie & Michele Moretti & Daregot Berihun Tenessa & Zemen Ayalew Ayele & Jan Nyssen & Enyew Adgo Tsegaye & Amare Sewnet Minale & Steven Van Passel, 2021. "Agricultural Technical Efficiency of Smallholder Farmers in Ethiopia: A Stochastic Frontier Approach," Land, MDPI, vol. 10(3), pages 1-17, March.

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