Do Agricultural Package Programs Improve the Welfare of Rural People? Evidence from Smallholder Farmers in Ethiopia

Araya Teka and Sung-Kyu Lee
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Araya Teka: Tigray Institute of Policy Studies (TIPS), 7000 Tigray, Ethiopia
Sung-Kyu Lee: Department of International Trade, Andong National University, Andong 36729, Korea

Agriculture, 2020, vol. 10, issue 5, 1-20

Abstract: The purpose of this paper is to assess the welfare status and analyze the impact of participation in farm package programs on the welfare of smallholder farmers. We used three round panel data of 789 households from the Eastern zone of Tigray, and the fixed effect instrumental variable method was employed in the estimation. The study found that consumption expenditure, income, and asset per capita of the households increased across the survey years. The participation of households in the integrated package programs has a positive and statistically significant impact on the consumption expenditure and calorie per adult equivalent, but not the income and asset per capita of the households. Also, affects the consumption expenditure per adult equivalent of the married households. To enhance the welfare of the beneficiaries, the provision of the package programs should align with the local resource endowment, focus on youth, widowed and divorced households and the government should prioritize and limit the number of packages that households can participate in.

Keywords: farm package programs; fixed effect instrumental variable; panel data; smallholder farmers; welfare status (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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