Working Paper 288 - Return to Investment in Agricultural Cooperatives in Ethiopia

Dambala Gelo, Edwin Muchapondwa and Abebe Abebe

Working Paper Series from African Development Bank

Abstract: In an effort to increase smallholder participation in commodity markets, the World Food Program (WFP) recently implemented five-year Purchase for Progress (P4P) pilot projects in 20 countries. The projects involved investing in physical and human capacities of Farmer Organizations (FOs) to aggregate commodities and add value as well as locally purchasing food aid from the same, the combination of which provided smallholders with value-added forward markets for their staple crop. In this study, using the Ethiopian survey data, we estimated a causal income and distributive effects of the Ethiopian P4P intervention among smallholders. Using a semi-parametric difference-in-difference (DID) model, which relaxes the parallel trend assumption, we show that the P4P intervention has raised per capita consumption of smallholders. Estimates of the treatment effect from alternative specifications of our preferred models ranged between Ethiopian Birr (ETB) 188.3 and ETB 248.6 (15.10% and 19.93%). Moreover, our analysis suggests heterogeneous treatment effects related to elite capture within Farmer Organizations. Policy implications are discussed.

Date: 2017-10-04
New Economics Papers: this item is included in nep-agr and nep-cta
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.afdb.org/fileadmin/uploads/afdb/Docume ... ives_in_Ethiopia.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:adb:adbwps:2406

Access Statistics for this paper

More papers in Working Paper Series from African Development Bank African Development Bank Group, Avenue Joseph Anoma, 01 BP 1387 Abidjan 01, Côte d'Ivoire. Contact information at EDIRC.
Bibliographic data for series maintained by Adeleke Oluwole Salami ().