Show Less
Restricted access

The Impact of Policy Reform and Institutional Transformation on Agricultural Performance

An Economic Study of Ethiopian Agriculture

Series:

Beyene Tadesse Ferenji

Inspired by the World Bank and the International Monetary Fund, many less developed countries have carried out economic policy reforms and institutional changes. However, it has become increasingly clear that due to lags in institutional and infrastructure development results of policy reforms are unsatisfactory. This study focuses on assessing the impact of policy reform on agricultural production in Ethiopia. It investigates components of output growth, input use, technical efficiency and technological progress by applying a Stochastic Production Frontier model on a detailed rural household database. It also examines the degree of product price instability and its impacts on modern input use and food supply using a Vector Error Correction model on time series data. The study concludes by pointing out the prospects and constraints of agricultural transformation in Ethiopia.
Contents: Synopsis of Development Theories: The Significance of Agricultural Transformation and Its Roles in the Dynamics of Economic Growth – Review of Ethiopian Development Policies, the Position of Agriculture in the Economy and the Challenges – Analysis of Dynamics in Sources of Agricultural Output Growth at Farm Household Level – Constraints to Technical Efficiency Improvement in Maize Producing Farmers – Market Liberalization, Price Instability and Its Impacts on Modern Input Use and Food Production.