The Impact of Agricultural Extension and Roads on Poverty and Consumption Growth in Fifteen Ethiopian Villages

35 Pages Posted: 27 Aug 2008

See all articles by Stefan Dercon

Stefan Dercon

University of Oxford - Department of Economics

Daniel O. Gilligan

International Food Policy Research Institute (IFPRI)

John Hoddinott

Cornell University, Dyson School of Applied Economics and Management, Students

Tassew Woldehanna

Addis Ababa University

Multiple version iconThere are 3 versions of this paper

Date Written: April 23, 2008

Abstract

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.

Keywords: poverty, Ethiopia, consumption growth, roads, extension

JEL Classification: O12

Suggested Citation

Dercon, Stefan and Gilligan, Daniel O. and Hoddinott, John and Woldehanna, Tassew, The Impact of Agricultural Extension and Roads on Poverty and Consumption Growth in Fifteen Ethiopian Villages (April 23, 2008). Available at SSRN: https://ssrn.com/abstract=1259336 or http://dx.doi.org/10.2139/ssrn.1259336

Stefan Dercon

University of Oxford - Department of Economics ( email )

Manor Road Building
Manor Road
Oxford, OX1 3BJ
United Kingdom
44 1865 271084 (Phone)
44 1865 271094 (Fax)

Daniel O. Gilligan

International Food Policy Research Institute (IFPRI) ( email )

2033 K St., NW
Washington, DC 20006-1002
United States
202-862-8146 (Phone)
202-467-4439 (Fax)

John Hoddinott (Contact Author)

Cornell University, Dyson School of Applied Economics and Management, Students ( email )

Ithaca, NY
United States

Tassew Woldehanna

Addis Ababa University

King George VI St
Addis Ababa, 1000
Ethiopia

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
145
Abstract Views
1,258
rank
233,892
PlumX Metrics