The Behaviours and Dynamics of the Real Exchange Rates of the "Birr" (1960-1991)
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Date
1996-06
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A.A.U
Abstract
Based on ERHS data, the study used two-step dynamic nonlinear panel data model to
analyze poverty dynamics, the implication of shocks and informal risk sharing strategies
on poverty dynamics. The model better explains the dynamic process of rural poverty in
Ethiopia, which reveals the existence of true state dependence. Size of land owned,
number of oxen, male headship and higher educational attainments reduces the risk of poverty.
Only drought s’= Ock and death experienced betweenI977-1983 E.C. have long-term
impact on poverty dynamics, whereas the impact of idiosyncratic shocks is wiped-out
shortly. Many of informal risk sharing strategies significantly reduce current poverty.
But in the long-tem receiving remittance and food gift prolongs poverty. While lending to
others and membership in Eqqub have poverty reducing impact both currently and in the
long-tem.
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Keywords
Behaviours and Dynamics, Real Exchange Rates