The Impact of Agricultural Extension and Roads on Poverty and Consumption Growth in Fifteen Ethiopian Villages
University of Oxford - Department of Economics
Daniel O. Gilligan
International Food Policy Research Institute (IFPRI)
International Food Policy Research Institute
Addis Ababa University
April 23, 2008
This paper investigates whether public investments that led to improvements in road quality and increased access to agricultural extension services led to faster consumption growth and lower rates of poverty in rural Ethiopia. Estimating an Instrumental Variables model using Generalized Methods of Moments and controlling for household fixed effects, we find evidence of positive impacts with meaningful magnitudes. Receiving at least one extension visit reduces headcount poverty by 9.8 percentage points and increases consumption growth by 7.1 percent. Access to all-weather roads reduces poverty by 6.9 percentage points and increases consumption growth by 16.3 percent. These results are robust to changes in model specification and estimation methods.
Number of Pages in PDF File: 35
Keywords: poverty, Ethiopia, consumption growth, roads, extension
JEL Classification: O12working papers series
Date posted: August 27, 2008
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