The purpose of this paper is used to document the different steps followed to construct the 2010/11 Social Accounting Matrix for Ethiopia. The SAM is an extension of the Standard Nexus Structure. It consists of 63 activity sectors, 67 commodity sectors, three types of factors of production: labor (rural and urban disaggregated by level of education), land, and capital (disaggregated by crops, livestock, mining and other sectors). The household sector is divided spatially into urban and rural households. Rural households are further disaggregated into households that earn crop and/or livestock incomes (i.e., farm households) and those that do no earn incomes from either source (i.e., nonfarm households). Households are further disaggregated into per capita expenditure quintiles. This SAM allows analyzing issues at the detailed level and to better understand the potential impacts of policy changes for both better off and more vulnerable households.

The study developed a results framework to analyze Ethiopia’s progress towards selected CAADP/Malabo, SDGs and Agenda 2063 goals. A Computable General Equilibrium model linked to an income distribution Micro-Simulation model were used to identify priority investment areas for accelerated agricultural growth, poverty and inequality reduction. Simulation results indicate that the current investment trend and composition would leave Ethiopia off-track to meet these objectives. The analysis of alternative agricultural investment scenarios shows that the public sector has still a great role to play in promoting agricultural growth in Ethiopia. Past expenditure levels have been high, though not sufficient, and would need to increase substantially with an emphasis on the quality of public agricultural spending. Productivity remains one of the major challenges but also one of the most effective solutions for accelerated agricultural growth in Ethiopia. Agricultural investments should be designed considering the agricultural value-chain. While social protection programs are important for the poor, rural non-agricultural development could provide a more sustainable source of income.

Climate and weather shocks pose significant threats to crop-livestock systems, leading to economic losses and humanitarian crises. Utilizing a modeling framework that innovatively integrates the crop and livestock systems, this study examines the interactions and dynamic adjustments within these systems following weather shocks, using Ethiopia as a case study. We also evaluate the effectiveness of various adaptation strategies in sustaining farm incomes, food security, and welfare. Results show unique effects on the crop and livestock sectors resulting from a joint shock on the two systems. While food crops experience a strong and immediate growth effect that fades quickly, the livestock sector faces the full impact of the shock a year later, with the effect persisting to some degree. We also find diverging economic and livestock system adjustment trajectories from the separate shocks to the crop and livestock systems. Further, the intervention options analyzed show contrasting impacts on various outcome indications, with only the resilient crop intervention causing sector-indifferent impacts. Our findings emphasize the importance of proactive measures to enhance the resilience of crop-livestock systems, with implications for policy and practice aimed at safeguarding food security and livelihoods in semi-subsistence economies.

This paper uses an economy-wide model to identify agricultural activities and value-chains in Ethiopia whose expansion would be most effective at generating economic growth, reducing national and rural poverty, creating jobs, and diversifying diets. Results indicate that expanding cereals production would continue to contribute positively to national pro-poor growth. However, the analysis suggests that there is no single value-chain that can achieve all policy objectives. Instead, a more balanced portfolio of valuechains would not only enhance agriculture’s future contribution to poverty reduction and economic growth, but also promote faster rural transformation and dietary diversification, both of which are needed to create job opportunities and improve nutrition outcomes over the longer-term. After considering alternative weighting schemes for competing policy goals, the final analysis suggests that vegetables and fruits/tree crops should be considered “priority” value-chains, because these are among the most effective at achieving multiple policy objectives. Other highly-ranked value-chains include oilseeds, tobacco/cotton/tea, and milk/dairy.

The purpose of this paper is used to document the different steps followed to construct the 2010/11 Social Accounting Matrix for Ethiopia. The SAM is an extension of the Standard Nexus Structure. It consists of 63 activity sectors, 67 commodity sectors, three types of factors of production: labor (rural and urban disaggregated by level of education), land, and capital (disaggregated by crops, livestock, mining and other sectors). The household sector is divided spatially into urban and rural households. Rural households are further disaggregated into households that earn crop and/or livestock incomes (i.e., farm households) and those that do no earn incomes from either source (i.e., nonfarm households). Households are further disaggregated into per capita expenditure quintiles. This SAM allows analyzing issues at the detailed level and to better understand the potential impacts of policy changes for both better off and more vulnerable households.

The purpose of this paper is used to document the different steps followed to construct the 2010/11 Social Accounting Matrix for Ethiopia. The SAM is an extension of the Standard Nexus Structure. It consists of 63 activity sectors, 67 commodity sectors, three types of factors of production: labor (rural and urban disaggregated by level of education), land, and capital (disaggregated by crops, livestock, mining and other sectors). The household sector is divided spatially into urban and rural households. Rural households are further disaggregated into households that earn crop and/or livestock incomes (i.e., farm households) and those that do no earn incomes from either source (i.e., nonfarm households). Households are further disaggregated into per capita expenditure quintiles. This SAM allows analyzing issues at the detailed level and to better understand the potential impacts of policy changes for both better off and more vulnerable households.