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Aggregate agricultural supply response in Ethiopia: a farm-level analysis

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  • Suleiman Abrar

    (Department of Economics, University of Sheffield, Sheffield, UK)

  • Oliver Morrissey

    (School of Economics, The University of Nottingham, Nottingham, UK)

  • Tony Rayner

    (School of Economics, The University of Nottingham, Nottingham, UK)

Abstract

This study examines the responsiveness of peasant farmers in Ethiopia to price and non-price factors. Quadratic production and restricted profit functions are estimated using farm-level survey data from Ethiopia in 1994. The results indicate that farmers respond only modestly to price incentives. The own-price output supply elasticity is very low and output supply is not responsive to fertilizer prices or the wage rate. Non-price factors are far more important in affecting production and resource use than price incentives. The results are robust to whether the primal or dual approach is used to estimate elasticities. The results underscore the need to strengthen market incentives through effective policies that will improve farmers' access to fertilizer, land and credit, public investment in roads and irrigation. Copyright © 2004 John Wiley & Sons, Ltd.

Suggested Citation

  • Suleiman Abrar & Oliver Morrissey & Tony Rayner, 2004. "Aggregate agricultural supply response in Ethiopia: a farm-level analysis," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(4), pages 605-620.
    • Handle: RePEc:wly:jintdv:v:16:y:2004:i:4:p:605-620
    DOI: 10.1002/jid.1110
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    Cited by:

    1. Alexander Jordan & Marco Guerzoni, 2020. "The pain of a new idea: Do Late Bloomers response to Extension Service in Rural Ethiopia?," Papers 2006.02846, arXiv.org.
    2. Daniela Campus & Gianna Giannelli, 2016. "Is the Allocation of Time Gender Sensitive to Food Price Changes? An Investigation of Hours of Work in Uganda," Working Papers - Economics wp2016_16.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    3. Abrar Suleiman, 2004. "Smallholder Supply Response and Gender in Ethiopia: A Profit Function Analysis," Working Papers 2004007, The University of Sheffield, Department of Economics, revised Aug 2004.
    4. Amsalu K. Addis & Simplice Asongu & Zhu Zuping & Hailu Kendie Addis & Eshetu Shifaw, 2020. "Chinese and Indian investment in Ethiopia: infrastructure for ‘debt-trap diplomacy’ exchange and the land grabbing approach," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 16(6), pages 998-1025, June.
    5. Schmidt, Emily & Chinowsky, Paul & Robinson, Sherman & Strzepek, Kenneth M., 2014. "Determinants and impact of sustainable land and watershed management investments: A systems evaluation in the Blue Nile Basin, Ethiopia:," ESSP working papers 62, International Food Policy Research Institute (IFPRI).
    6. Tsehay, Solomon & Adane, Zewdie & Feto, Adem, 2022. "Agriculture-Industry Linkages for Employment and Economic Transformation in Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 31(01), April.
    7. Takeshima, Hiroyuki & Adhikari, Rajendra Prasad & Shivakoti, Sabnam & Kaphle, Basu Dev & Kumar, Anjani, 2017. "Heterogeneous returns to chemical fertilizer at the intensive margins: Insights from Nepal," Food Policy, Elsevier, vol. 69(C), pages 97-109.
    8. Diao, Xinshen & Pratt, Alejandro Nin, 2007. "Growth options and poverty reduction in Ethiopia - An economy-wide model analysis," Food Policy, Elsevier, vol. 32(2), pages 205-228, April.
    9. Anbes Tenaye, 2020. "New Evidence Using a Dynamic Panel Data Approach: Cereal Supply Response in Smallholder Agriculture in Ethiopia," Economies, MDPI, vol. 8(3), pages 1-24, July.
    10. Bumb, Balu L. & Johnson, Michael E. & Fuentes, Porfirio A., 2011. "Policy options for improving regional fertilizer markets in West Africa:," IFPRI discussion papers 1084, International Food Policy Research Institute (IFPRI).
    11. Diao, Xinshen & Pratt, Alejandro Nin & Ghautam, Madhur & Keough, James & Chamberlin, Jordan & You, Liangszi & Puetz, Detlev & Resnick, Danielle & Yu, Bingxin, 2005. "Growth options and poverty reduction in Ethiopia: a spatial, economy-wide model analysis for 2004-2015," DSGD discussion papers 20, International Food Policy Research Institute (IFPRI).
    12. Shikur, Zewdie Habte, 2021. "Potato and Tomato Supply and Yield Responses to Policy in Ethiopia," African Journal of Economic Review, African Journal of Economic Review, vol. 9(4), September.

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