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Ethiopia's Economic Transformation: The Power of Agricultural Policy

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Description

Agriculture-led development has been a topic of controversy among economists and policymakers for decades. While some argue that development in agriculture emphasizing smallholder farming is a condition for industrialization, others strongly reject this idea and struggle for a different path. However, there are many success stories of agriculture serving as a motor of growth, poverty reduction, and precursor to industrialization, despite its failure in SSA, particularly when contrasted with the green revolution of Asia. Ethiopia has followed the agriculture-led growth pattern formally by adopting ADLI since the late 1990s, underscoring investments to increase agricultural productivity, its strong linkages with the rest of the economy, its aspirations to achieve accelerated growth, and setting a concrete basis for industrial development. Given the remarkable growth, it has followed patterns different from its policy directions and its learning from East Asian experiences. As a result, there are growing controversies and concerns about the effectiveness of ADLI. Some argue that ADLI is not achieving its goal, citing the stagnancy of manufacturing and linking its constraining factors to the inadequacy of ADLI policy instruments. Others link the problem with failure in policy adoption and implementation. But neither of those studies showed the drivers of sectoral growth and evolution of the sectoral composition of output, nor the extent of labor mobility, productivity, and the relative effects of ADLI on economic restructuring. Hence, this book intends to examine the effects of ADLI on sectoral output, economic growth, and structural transformation. Also, assess the main stakeholders’ perception of the effectiveness of ADLI in fostering structural change & economic enhancement of Ethiopia to realize whether the policy contents, instruments, and practices of ADLI align with the dominant perception of key stakeholders. Furthermore, it evaluates whether agriculture could have played a dynamic role and could serve as an engine of growth in Ethiopia. It contributes, allowing policymakers and planners to base their decisions and subsequent actions on a solid foundation and documents empirical evidence in attaining structural economic transformation under ADLI's guidance. The book relies on the traditional growth theories and the neoclassical growth models. It combines various methods, including a mix of descriptive and qualitative analysis and binary logistic regression based on 1367 sample surveys, ARDL-ECT estimators, sectoral decomposition models, dynamic two-step system GMM, and PMG panel estimators.

Product Specifications

Format
paperback
Domain
Amazon UK
Release Date
17 February 2025
Listed Since
18 February 2025

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