AAU-ETD :: Browsing by Author "Demeke Mulat"

Browsing by Author "Demeke Mulat"

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Analysis of Determinants of Business Demand for Internet Access in Addiss Ababa
(Addis Ababa University, 2006-07) Fekadu Dereje; Demeke Mulat
Recognizing the benefits of Information Communication Technologies (ICTs) in general and Internet in particular to the overall advancement of social, economic and politics of a country, developing countries are investing on network infrastructures. However, the penetration level of the countries such as Ethiopia has been very low which will hinder the country not to reap the benefits of the technologies. The purpose of this study was to identify the determinants of Internet diffusion among business organization in Addis Ababa. Hence, a survey was conducted on a random sample of businesses and a logit model of Internet access was estimated. The major result of the estimated model indicate that the likelihood of access to the Internet by a firm is explained by the level of the education of the management, level of sales of the business and its openness to international trade. Furthermore, the descriptive analysis showed that among the connected businesses the use of Internet is limited to email and browsing, while advanced electronics uses such as E-commerce, E-procurement, etc. are almost non-existent
Analysis of Risk and Supply Response of Agriculture: Empirical Investigations from the Ethiopian Coffee Growing Zones
(Addis Ababa University, 2007-07) Elias Hailu; Demeke Mulat
A study was conducted to examine the major shocks and their impact on coffee production and the livelihood of smallholder coffee farmers in five major coffee growing zones of Ethiopia, namely, Sidamo, Jimma, Illubabor, Wolayta and West Hararghe. After pooling the available data set using the error component model, the pooled OLS and fixed effects regression methods were used to analyze the effects of shocks on coffee production and supply response variation across the study areas. It was found that a combination of shocks including drought, pests and coffee diseases, drastic fall in world coffee price and health problems have serious effects on coffee yield and household income. Households living in different zones of the country have different supply responses because of the socio-economic and agroecological differences. In the face of the severe effects of shocks, farmers have adopted a range of risk management strategies such as intercropping, depleting assets, borrowing, membership to a social support system and production/marketing unions. However, under the prevailing production technology and farming systems, the strategies employed by farmers are not adequate enough to cope with the effects of the recurring shocks. Policy implication of the study is that one-size-fits-all policy packages and blanket recommendations cannot solve the problems of coffee farmers. Therefore, under the current dynamic market scenario, the success of the Ethiopian coffee sub-sector highly depends on targeted support to reduce the impacts of shocks and to build the capacity of indigenous institutions. Interventions need to be disaggregated by agro-ecological zones and socio-economic settings.
An Analysis of the Macroeconomic Determinants of Private Investment in Sierra Leone
(Addis Ababa University, 2002-06) Jalloh Mohamed; Demeke Mulat
This paper endeavors to identify the Macroeconomic determinants of private investment in Sierra Leone using time series data spanning from 1966 to 1998. From a simple trend analysis, it was observed that private investment (as a ratio of GDP) rose steadily from about 6.5% in 1966 to around 8.5% in 1978. After 1978, it fluctuated drastically reaching a minimum of around 3.8% in 1980 and subsequently shooting up to around 11.5% in 1981. Thereafter, private investment (as a ratio of GDP) decline continuously reaching a minimum of around 3.0% in 1998. Several reasons ranging from external shocks, inappropriate fiscal and monetary management, and the ten years of hostilities among others, were responsible for this. The methodology employed i n carrying out the analysis of the study specified a version of the flexible accelerator model of investment for Sierra Leone following the works of Solimano (1990), Chhibber and Shafic (1990), Blejer and Khan (1984), Chhibber and Van Wijnbergen (1988), Musalem (1988), and Scmidt-Hebel and Muller (1991). A dummy variable taking the value of one from 1991 to1998 and zero otherwise, was used to take account of the war in Sierra Leone and enters the regression. This is followed by estimation techniques on the basis of Co-integration analysis using both the Johansen’s (1988) procedure and the ECM approach. On the basis of the Johansen’s procedure, a single cointegrating vector was identified. Both the long-run and a dynamic private investment models were subsequently estimated. From the estimates of the long-run model, the results indicated that while real GDP and public sector investment positively affect private investment, interest rate, real exchange rate and inflation negatively affect private investment. On the basis of the Short-run estimates, while public sector investment, real GDP and the interest rate have positive effect on private investment, inflation and the real exchange rate negative effects on private investment. Though not significant, the war dummy show a negative sign indicating the adverse effect of the war on private investment in Sierra Leone.
Assessment of the Impact of Productive Safety Net program on Household Welfare: The Case of Adami Tulu Jido Kombolcha Wereda, East Shoa, Oromia Regional State
(A.A.U, 2008-06) Yadete Tadesse; Demeke Mulat
This study reports both theoretical and empirical findings on the impact of productive safety net in Adami Tulu Jido Kombolcha wereda, East Shoa Zone of Oromia regional state. The main objective of this study is to assess the impacts of Productive safety net transfers on household welfare. The analysis was made using the household data collected from three kebeles (Chetu Cetu, Werja Weshgula and Hurufa Lole). The study looked at the household characteristics and the descriptive result shows that there are interesting differences in the composition of PSNP beneficiary and non-beneficiary households, which suggest that certain demographic criteria might have been used in targeting households for the PSNP. Thus, female-headed and older-headed households are generally more vulnerable and more likely to need support than male-headed households. The probit regression analysis result shows that among other variables included in the study household labour, beneficiary dummy, education dummy, ox holding, number of oxen and age have been significant in determining household welfare. As it was hypostasized beneficiary, ox holding and household labour are positively related to the probability of increase in welfare. Age, education dummy and number of oxen negatively and strongly related to changes in welfare over the last year. Therefore, the probability of improving welfare of the respondents is significantly affected by households being beneficiary of safety net program
Assessment of the Impact of Productive Safety Net Program on Household welfare: The case of Adami Tulu Jido Kombolcha Wereda, East Shoa, Oromia Regional State.
(Addis Ababa University, 2008-06) Yadete Tadesse; Demeke Mulat
This study reports both theoretical and empirical findings on the impact of productive safety net in Adami Tulu Jido Kombolcha wereda, East Shoa Zone of Oromia regional state. The main objective of this study is to assess the impacts of Productive safety net transfers on household welfare. The analysis was made using the household data collected from three kebeles (Chetu Getu, Werja Weshgula and Hurufa Lole). The study looked at the household characteristics and the descriptive result shows that there are interesting differences in the composition of PSNP beneficiary and non-beneficiary households, which suggest that certain demographic criteria might have been used in targeting households for the PSNP. Thus, female-headed and older-headed households are generally more vulnerable and more likely to need support than male-headed households. The probit regression analysis result shows that among other variables included in the study household labour, beneficiary dummy, education dummy, ox holding, number of oxen and age have been significant in determining household welfare. As it was hypostasized beneficiary, ox holding and household labour are positively related to the probability of increase in welfare. Age, education dummy and number of oxen negatively and strongly related to changes in welfare over the last year. Therefore, the probability of improving welfare of the respondents is significantly affected by households being beneficiary of safety net program.
Determinants of Rural Poverty in an Agro-Pastoral System in Gambella with Special Reference to Jiokow District
(A.A.U, 2001-06) Ruey Chuol; Demeke Mulat
Addressing the issue of rural poverty in agro-pastoral areas of Nuer should be at the heart of any development strategy for Gambella region. The main objectives are: ( I) to measure the level of poverty, (2) to single out major determinants of poverty in an agro-pastoralists areas and (3) to point out some possible measures that need to be taken in order to alleviate poverty in the areas. The empirical findings also show that land size, total livestock owned ( TLU), income ratio ( IRA TO), sex, number of women married to a man, hunting and fishing practices significantly explain household poverty. The major policy recommendations in alleviating poverty in rural jiokow are to improve the quality of land through micro-irrigation schemes and promote management of conflict related to land issues, upgrade the productivity of local cows through crossbreeding schemes and veterinary compaign, and making a policy for gender equality by increasing the economic value of women's work through skill training for productive, profitable employment and through increased women's access to credit and technology.
Determinants of Household Decision to Adopt Fuel Efficient Technology: Evidence from Improved ("MIRT") Stove Technology a Case in Adea Woreda, East Shoa Zone
(A.A.U, 2007-03) Woubishet Dawit; Demeke Mulat
Energy is vital for economic development for both developed and developing countries. The need for energy in developed nations is a question of comfort but for developing nations it is a question of survival and poverty. The needs' for energy in developing countries meet from biomass resource. these resources are heavily utilized and it has adverse effect on the environment and natural resource. And it is directly used by inefficient stoves; this direct burning of biomass has impact on the health of the poor (especially women and children) , income, household environment and resource Improvement was made but success of many interventions in dissemination of efficient improved stoves in both rural and urban settings are not successful due to top down and supply nature of the programs, technology centered and lack (if compatibility with the beneficiary groups. Therefore, those factors indicate the need for existing research to start from the target group not on the technology. The main objective of this study is to analyze the determinant factors that affect household decision to adopt fuel efficient improved stove technology and to acquire information about the technology. Evidence taken from improved (‘Mirt ") stove technology in Adea" wereda, both in rural and urban settings. The study take in to consideration the socioeconomic,demographic, dwelling characteristic, information diffusion and attitudinal variables of the households in the study area.The increasing scarcity of biomass and the increment of the number of people who use biomass,particularly fire wood, threaten the capability of the country even to maintain the already existing low income and living standard (if the people. therefore, the need for adopting improved ‘mirt" stove not only enables the households to use fuel efficiently, but also enable them to curb the problems caused by using traditional and open fire stoves as well as biomass energy related problems. [I can also mitigate the impacts on the users' health. and the overall environment and natural resources brought by using those traditional and open fire stoves. With two conditional equations, that is information and adoption equation. This study result reveals that improvement in socio economic conditions of the people have positive impact in acquisition and access information in urban and rural households. Moreover, the result supports the "energy Ladder" hypothesis as theoretical and functional useful framework to explain the fuel use and improved technology adoption in the study area. The finding also reveals socioeconomic improvements also have direct and Significant impact on adoption decision. This .finding also reinforce the role of government and non government organization to playa major role in provision and diffusion of information and enhal1ce the adoption decision of the people to protect the country natural resource and to resolve environmental problems that arise du e to excessive utilization (if biomass resources.
Economic Performance of Ethiopia (1972-1995): Growth Determinants and Implications
(A.A.U, 1996-05) Chane Seyoum; Demeke Mulat
An assessment of the Ethiopian economy indicates poor performance of the commodity producing sector most notably agriculture, low domestic sayings, weak private investment, extremely low foreign investment inflow, deterioration of living standards, unemployment and poor social and physical infrastructure. This paper looks into the performance of the Ethiopian economy over the period 1971172- 1994/95. Looking into the empirical determinants of the Ethiopian economic growth (or the likely causes of the inadequate long term record growth) during 1968-1995 the result indicates that growth of population, share of government consumption to GDP, and growth in money supply affect GDP per capita growth negatively. Variables as lagged ratio of agricultural output to real GDP, real export growth, percentage change in real effective exchange rate, and share of real trade balance in real GDP on economic growth are found to be a significant contributing factors for the economic growth. In contrast growth of capital formation (substantially dominated by government investment), and human capital showed no evidence that explains at least the poor growth performance, which may be attributed to the measurement problems. The paper further concludes that the specification for testing the possible export growth nexus through its direct and beneficial externality effects on the rest of the economy has shown no evidence and has no satisfactory explanatory power. It follows that policies that favorably affect the agricultural sector; reduce government consumption (with out reducing government investment); maintain external competitiveness; improve real effective exchange rate; create conducive environment for private sector investment, foreign capital inflow, and export diversification; slow population growth, and encourage human capital development are found to be important
Education, Training and Agricultural Technology Adoption in Resource Poor Areas of North Wollo: The Case of Meket Woreda
(A.A.U, 1999-06) Tassew Mulugeta; Demeke Mulat
Inspite of its important contribution to the Ethiopian economy at large, the performance of agriculture was disappointing for decades. Cognizant of this fact, Ethiopia is now implementing Agricultural Development-Led Industrialization (ADLI) strategy which concentrates on accelerating growth through disseminating better performing crop and livestock technologies to farm households. Differences on how quickly producers adopt such technologies can be explained by differences in human capital and differences in knowledge of the new technology. Having this idea in mind, a field survey was conducted in one of the resource poor areas of north wollo (Meket Woreda) to identify the factors that influence the use of improved crop technologies and ownership of livestock particularly cow and sheep among farmers in the woreda. This being the general aim of the Study, the chief objective was to see the impact of human capital variables on the adoption of these technologies. To this end, the probit model was fitted on primary cross sectional data collected from 144 farm households. An attempt is also made to see whether or not crop technologies are profitable or not by calculating the so called value cost ratio. The result obtained from the estimated models showed that the education level of household head, family size, participation in agricultural training programs and farm income significantly affect the adoption of fertilizer and/or improved seeds (Crop technologies). On the other hand, cow ownership is found to be influenced by total cultivated land, farm income and access to livestock credit. Similarly, sheep ownership is influenced by total cultivated land, age of household head, distance from main road and agro-climatic condition. The calculated value cost ratio indicated that income from barley production can be tripled if farmers apply the recommended rate of fertilizer on a hectar of land sawn with local variety of barley. Similarly, wheat production can be doubled if improved seed is mixed with fertilizer. Policies recommended from the findings of the study include infrastructual development dealing with education, strengthening agricultural training programmes and research activities and provision of livestock credit particularly to resource poor farmers. It is hoped that, such types of government action would improve agricultural production of the country in general and of the study area in particular.
Female-Headed Households and Poverty in Urban Ethiopia
(Addis Ababa University, 2003-06) Assefa Meron; Demeke Mulat
The study has tried to examine the extent of poverty and vulnerability of female–headed households by way of making comparisons with their male counterparts in urban Ethiopia. It further looks through the determinants of their welfare and poverty. It is based on the 1999/2000 Household Income, Consumption and Expenditure Survey (HICES) and Welfare Monitoring Survey (WMS) from Central Statistical Authority (CSA). Using the Foster, Greer and Thorbecke (FGT) poverty indices, the descriptive analysis of poverty indices revealed that female-headed households are poorer and more vulnerable to poverty than male-headed households. To further investigate this, micro level regression models (OLS, probit, ordered probit and tobit models) have been estimated. And as to the results, the variable indicating gender suggests that female headship has no significant direct impact on the welfare or poverty level of households. Rather, other variables such as educational attainment of the head, household size (especially higher number of children in a family), location of residence in the region, and to some extent employment status of the head are found to be the key determinants of poverty. However, since FHHs are more illiterate and unemployed with most of them concentrating in informal sector activities, by implication the fact that they are female heads has an impact on the welfare or poverty status of the households indirectly through affecting their level of education and employment status. Hence, there is an evidence to suggest that poverty alleviation programs should use FHHs as proxy variables for targeting the poor. With that, gender-sensitive poverty alleviation policies that enhance endowments such as those that increase education level, employment and ability to control fertility should be the key ingredients of a poverty reduction strategy in the region. Besides, the variable indicating region of residence suggests that for the government to eradicate poverty anti-poverty policy should be drawn on regional basis. Key Words: Welfare and Poverty, Vulnerability, Female-headed households, Urban Ethiopia, FGT poverty indices, OLS, Probit, Ordered Probit and Tobit models
Government Support and Export: A DID Approach
(2008-06) Regassa Eyerusalem; Demeke Mulat
The government of Ethiopia have been trying to create a good environment for investors and exporters of non-traditional product by providing different export and investment incentives. Among these are the Export Trade Duty Incentives and Export Credit Guarantee Scheme. This study investigates the impact of these schemes on export. A Difference -in-Difference methodology was used to estimate effects of the two export incentives adopted in Ethiopia. With data for individual exporters of the year 2000and 2002 , the DID estimation shows significant impact of export incentives on export .But this should not be over emphasised ,one has to look at the costs for the government either in terms of foreign exchange or opportunity cost of the funds to the country. The government have been providing substantial amount of support to exporter up on their demand to hit the intended target with out no cross checking of whether the subsidy have been used properly or not as long as the firm export the targeted amount. Hence thinking of what this funds could do in other sector or areas of investment. As well thinking of how little variation of export is explained by subsidy as it shown in the DID methodology. The government should consider the cost of subsidy hand in hand with the gain from this subsidy.
Government Support and Export: a Did Approach
(A.A.U, 2008-06) Regassa Eyerusalem; Demeke Mulat
The government of Ethiopia have been trying to create a good environment for investors and exporters of non-traditional product by providing different export and investment incentives . Among these are the Export Trade Duty Incentives and Export Credit Guarantee Scheme. This study investigates the impact of these schemes on export. A Difference -in-Difference methodology was used to estimate effects of the two export incentives adopted in Ethiopia. With data for individual exporters of the year 2000 and 2002, the DID estimation shows significant impact of export incentives on export . But this should not be over emphasised ,one has to look at the costs for the government either in terms of foreign exchange or opportunity cost of the funds to the country . The government have been providing substantial amount of support to exporter up on their demand to hit the intended target with out no cross checking of whether the subsidy have been used properly or not as long as the firm export the targeted amount. Hence thinking of what this funds could do in other sector or areas of investment. As well thinking of how little variation of export is explained by subsidy as it shown in the DID methodology. The government should consider the cost of subsidy hand in hand with the gain from this subsidy.
Impact of Adoption of Soil Bund on Grain Production: The Case of Kilie Water Shed Area, Lume Woreda Ethiopia
(A.A.U, 2007-07) Sefere Yohannes; Demeke Mulat
This study is undertaken in Kilie watershed area found in Lume woreda, Oromia Regional State.The paper focused on analyzing the factors that influence the adoption of soil bund on grain production using cross-sectional data collected in 2007 on randomly selected 141 households having 520 plots. The data included in the analysis comprises both socio-economic factors at household level and biophysical variables atfarm plot level. Probity and impact evaluation econometric models were used to determine the factors affecting the adoption decision behavior of the farm household and the impact of adoption on grain production respectively. The result of the probit model showed that sex of the household head, farming experience, training on soil and water conservation practices, land size, plot slope, labour-land ratio, size of livestock, person-land ratio and distance of plot from residence found to be significant. In the second model, the regression analysis was run by classifying the crops grown by the farmers into three categories: for the whole crops, for the main crop (tejj) and other crops (excluding teff). The result indicated that in all of the three cases the impact of adoption of soil bund on crop production has positive sign, however, it was significant (at 5% level of significance) only for teff. In the case of whole crops and other crops, the variable soil and water conservation practice is not significantly different from zero. The other variables that have significant influence on the value of crop production include: sex of the household's head and the major factors of production (fertilizer, land size, family labor and draught power). Two main policy implications can be emerged from the study. To expand the adoption of the conservation practice the government should strengthen the program in the area. To encourage the probability of adoption and intensity of use, research on improved soil and water conservation techniques should play attention to the provision of tangible short term benefits. The second is to stimulate the adoption of soil and water conservation practices farmers should be provided with short term training. The training will help them to use the technology effectively and in sustainable way.
Impact of Soil Conservation on Crop Productivity in the Southern Ethiopian Highlands.
(A.A.U, 2007-03) Teshale Dawit; Demeke Mulat
Land degradation, especially soil erosion, nutrient depletion and soil moisture stress are severe problems in Ethiopia. Land management, therefore, becomes a key problem area in addressing land degradation and achieving sustainable agricultural development in the country. This research gives emphasis to identify the determinant factors of Soil and Water Conservation (SWC) adoption. In addition, the impact of SWC on crop productivity is also addressed .The study is based on a primary data collected at plot level from 151 randomly selected households operating on 331 plots in Damot Gali Woreda.The binary probit approach is used for the analysis of the adoption decision, and a separate OLS regression is run based on a chow test to assess the impact of SWC on crop productivity for both sub samples. Heckman approach is also part of the analysis. Variables such as sex, age, access to credit, livestock ownership, distance to town market,slope and soil fertility were found to have a statistical significant impact on the adoption model.Moreover, agricultural inputs application (fertilizer & seed), sex of the household head and soil water conservation have a positive impact on crop productivity. The predicted mean yield difference also shows the positive impact of SWC on crop productivity.
Macroeconomic Policies and the Agricultural Sector in the Sudan, with Specific Reference to the Export Sub-Sector (1970-1995)
(A.A.U, 1996-06) Ahmed Fatima; Demeke Mulat
This paper seeks to address the effect of government intervention on the agricultural sector with particular reference to the export sub-sector at the aggregate and crop levels in the Sudan. In the study 5 major export crops were examined. The intervention was analyzed through sector specific and macroeconomic policies. From the analyses it was quite evident that agricultural exports have been taxed directly through trade policies, export regulations, price and market controls; and indirectly through unfavorable exchange rates on export and import tariffs and quotas on non-agricultural goods. Exchange rate was overvalued during the period of the study, this overvaluation has been relaxed in recent years due to trade liberalization and flexible exchange rate system. The implicit tax on agricultural exports is extensively more higher than the direct one. Further analysis was done using Ordinary Least Square estimates. Most of the data were non-stationary and the variables of interest were co-integrated and therefore, Engle Granger methods of error correction model was used. Agricultural export share on current GDP respond positively to the relative prices of agricultural goods, the response at crop level is stronger than at aggregate level. Labour force has a positive effect in some cases and negative in others. Export share adjusts with terms of trade shocks in the short-run but inefficient policies caused disequilibrium in the long-run. The protection rates have a negative effect on the export share, and this share was declining through time.
Measuring and Assessing Distortions in Coffee Commodity System: The Case of Jimma, Ethiopia
(A.A.U, 1997-06) Yadeta Taye; Demeke Mulat
The main objective of this study is to measure and assess distortions in coffee commodity system. To meet this end, both cross-sectional and time series data were collected and analyzed. Both dynamic and static analysis indicated that there have been some distortions in coffee commodity system which inhibit coffee producers from maximizing profit from coffee production. The time series analysis revealed that although there is a tendency for farmgate prices to move toward its border prices, the speed of adjustment is very low. High share of coffee in agricultural GDP contributed to this slow adjustment rate by inviting extensive government intervention into the sector. on the other hand overvaluation of the exchange rate and high share of coffee in total export adversely affected the short run transmission of the border price to farmgate price and long run rate of price protection respectively. PAM as a method of quantifying distortions and their effects on private and social profitability uncovered that coffee producers were making a meagre profit in 1988189 while exporters were receiving high profit. These situations were reversed in 1995196 owing to the policy reform. Coffee farmers have responded to the increased price (coffee) by planting more coffee, more use of hired labour etc. on the other hand devaluation and removal of subsidies caused the price of imported inputs to increase to unaffordable level. As the result farmers stopped spraying against CBD which might be the cause for insignificant coffee yield difference between the periods before and after there form . land, labour, extension services. and education were investigated to be the important determinants of coffee production in our study area. As to the allocation of these inputs are concerned the farmers of the study area have allocated their land efficiently while labor was not. Shortage of labor and risk aversion behavior of the farmers may result in sub-optimal use this input. Lastly based on the empirical result of the study , we recommend that the government should make a necessary effort to reduce direct tax from coffee, diversify export, reduce cost of fungicides, improve labor market and give premium for good quality coffee.
The Micro and Macroeconomic Determinants of Private Investment in the Manufacturing Sector in Kenya
(A.A.U, 2000-06) Kamau Timothy; Demeke Mulat
Kenya continues to record low levels of growth in private investment. This is despite the new paradigm that recognizes market mechanism and private enterprise as more efficient in generating the economic dynamism that leads to growth. This study set out to find the macro and micro economic factors that affect investment particularly in the manufacturing sector in Kenya. Econometric techniques of time series and also a survey were employed to analyze this phenomenon. High on the list of the macroeconomic factors negatively determining private investment is the high and unstable interest rates, increasing public debt, dilapidated infrastructure, insufficient expenditure on education development, low levels of credit to the private sector, the low level of GOP and generally, a harsh macroeconomic environment. These factors not only affect the manufacturers but also the Agriculture and the Service sectors. On the micro level, the macro factors also playa role coupled with other numerous socio-political and economic factors e.g. insecurity, corruption and contraband trade. If Kenya is to rid herself from the current economic quagmire and achieve her stated goal of becoming a Newly Industrialized Country (NIC) by the year 2020, then it needs to borrow a leaf from the "Asian Tigers" and tackle these issues urgently.
Price Response of Rural Households in Ethiopia: Case of Bako, Yetmen, Tiyo/Eteya
(2007-10) Yimer Feiruz; Demeke Mulat
The study is conducted to assess price response of Ethiopian farm households. For this purpose, a sample of 217 households selected from food crop growing areas is used. The households are modeled using the nonseparable farm household framework for the reason that the households are assumed to face incomplete labor market. The SNQ profit function is estimated to capture the production side of the households where as AIDS function for consumption side. Elasticities are derived from this function and utilized in calculating non-separable household model price elaticities. In addition, to examine the implication of market imperfection, the separable farm household price elasticities are calculated for comparison purpose. The findings show that price response of agricultural production activities are negatively affected by the rise in price of agricultural goods under non-separable framework unlike the separable one. On the other hand, change of fertilizer price in downward direction has positive impact on production and input use. So, the rise in price of agricultural goods is not the right incentive for increasing production. Hence, a more appropriate incentive for production would be a reduction in the price of fertilizer than a rise in price of agricultural goods. The possible policy implication which could be inferred form the analysis is that governments need to have the discretion to provide support in input use, particularly fertilizer, in the form of subsidy so as to initiate rural households to produce more.
The Productivity & Profitability of Wheat and Teff Technologies in Selected Villages of Ethiopia
(A.A.U, 2001-06) Tefera Nigussie; Demeke Mulat
This study examines the productivity and profitability of teff and wheat technologies in selected villages of Ethiopia, namely sribana-Goderi, Eteya, Shashemene and Yetmen using Cobb-Dauglass production function model. The paper indicated improved seed varieties,recommended rate of DAP and Urea, farming management (practices) and environmental factors have a significant positive impact on productivity. In addition, land under new extension system resulted in better yield responses than farmers' practices. The study showed that most farmers did not use improved seed varieties and recommended rate of Urea and DAP which enhance productivity and profitability. High costs of improved seeds and fertilizer, lack of money for down payment, lack of credit and loans etc were reasoned out as the major one.the paper also established that the existing technology package was profitable if land cost was not considered. If land cost was included most of the farmers earned profit less than the market wage rate except Sirbana-Godeti farmers. Thus, hiring-out labor is more preferable than renting-in for landless farmers. This paper concluded that emphasis should be directed towards the transformation of the agricultural sector through application of more productive technologies. agricultural development Unit (CADU, later called Arssi regional development unit, ARDU). It was established in 1967 through a cooperation agreement between Ethiopian government and the swedish international development authority (SIDA). The second was the Wellamo Agricultural Development Unit (WADU) that was .established in 1970 through World Bank assistance. WADU was followed by the Ada district development Project (ADDP), which began operation in 1972 and was assisted by United States Agency for International development (US AID). however, the experience gained from CADU' and to some extent from WADU as early as 1970 proved that the intensive package programs were too costly in terms of manpower and financial resources for large-scale expansion. An alternative strategy, more commensurate with the resources of the nation, had to be Oesigned. This alternative strategy was called the Minimum Package Project (MPP) and was launched in 1971 with technical assistance from SIDA. The MPP was designed to reach a large number of farmers with few "proven" innovations that have been developed or tested by intensive package projects and/or agricultural research institutes of the nation. The proven innovations essentially consisted of fertilizer, improved varieties of cereals, and the accompanying cultural practices i.e. method and rate of application of fertilizer, sowing rate and sowing dates of the improved varieties of seeds. The approach employed in MPP was supposed to be less costly on per farmer bases than CADD, WADU, or ADDP. But evaluation of the project proved that its objectives was not achieved since the expansion of commercial farming seriously constrained the impact of the projects on smallholders agriculture [Mulat, 1989; Dejene 1999].
Relationship between Poverty and Fertility the Case of Households of Ethiopia
(A.A.U, 2008-06) Fitamo Temsgen; Demeke Mulat
In this study the nature and degree of the bi-causality relationship between poverty and fertility is explained. The study used data from demographic and health survey of Ethiopia of the year 2005. Poisson regression approach for multivariate analysis of fertility was employed. Fertility is analyzed by considering the number of children born to a woman with in her life time, and "asset index" was constructed from ownership of durables and housing characteristics as proxy for economic status.!t was found that fertility and poverty have different relations in urban and rural areas. Strong positive relation is observed in urban areas. But it was found that poverty shows J curve causality onto fertility. Fertility is negatively related with both low income and high income levels of household; however it shows strong positive relation with middle income households. Education, age at first marriage of female, employment and contraceptives have a strong reducing impact on fertility. In addition education plays a significant role in curbing poverty by increasing the productiveness, employment opportunity and empowering women. To alleviate high fertility and poverty, one can follow to routes. First, by reducing poverty incidence through better access to education and thus employment opportunity, we can address high fertility through improved accesses for education, as it increases opportunity cost of child bearing, delay marriage, and increases awareness contraceptive usage The second way is, directly targeting high fertility through family planning to reduce poverty in Cadence. Balanced economic growth and population growth will help government to provide nations with better social service and to produce more productive generation through provision of education, better employment opportunity and improved health care service. It needs policy intervention to expand education and family planning programs with better contraceptive access to low income women in both rural and urban areas. Attention should also be given to ways of reducing social factors which encourage early marriage so as to improve the social and economic power of women.

Browsing by Author "Demeke Mulat"

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