EDRI Working Paper 016:   



Subjective Wellbeing and Institutions: The Case of Rural Ethiopia


This study focuses on the role of religiosity, general and political trust, local participation, and welfare metrics on wellbeing in rural areas using the Ethiopian Rural Household Survey. Ordered probit methods that account for Heteroscedasticity reveal distinctive correlates of overall life satisfaction and momentary happiness. Broader socio-economic factors such as religiosity and political governance strongly predict life satisfaction, while largely welfare metrics drive momentary happiness. The differential role of institutions on life satisfaction and momentary happiness is in comport with Deaton’s (2008) and Stevenson and Wolfers’s (2008) proposition that life satisfaction and happiness are not synonymous.


Tsegay Gebrekidan Tekleselassie



EDRI Working Paper 015:   



Coffee Income, Food Security and Diet Diversity of Smallholder Coffee Growers in Ethiopia


A large primary survey was conducted to understand the status of food security and diet diversity of smallholder coffee farmers from within major commercial coffee producing zones in the country. We relied on data from almost 1,600 households that were randomly selected and then interviewed using a multi-stage sampling technique. The study applied both descriptive and econometric methods to analyse data from the household survey. As core findings indicate, income from coffee sales was found to be positively and significantly related to food security while better diet diversity is found to be associated with total household wealth. However, diet diversity has no positive or negative association with the share of coffee in total household income. In both cases of food security and diet diversity, land size, the total value of household assets and the value of livestock are found to have a positive contribution as predicted. This implies that cash crop production of coffee can help to assure improved food security in the country, although other additional measures are needed to obtain improved diet diversity of smallholder coffee growers.


Tadesse Kuma Worako, Mekdim Dereje and Bart Minten



EDRI Working Paper 014:   



An Economic Inquiry into Ethiopian Exports: Pattern, Characteristics, Dynamics and Survival


Using both aggregate and firm-level Customs data, this paper examines Ethiopia’s export performance and dynamics over the period 1995/1996 – 2014/2015 from various dimensions. Specifically, we attempt to address the following issues:

(i) How concentrated/diversified are Ethiopia’s exports in terms of exporters, products, and markets? Or, over the past decade or so, has Ethiopia added economically significant numbers of new products and markets to its export portfolio.

(ii) To what extent do Ethiopian exporters survive beyond their first year of entry to the export market?

(iii) And finally we decompose export growth/contraction into intensive and extensive margins to see what drives export change in Ethiopia.

Berihu Assefa and Kiflu Gedefe


EDRI Working Paper 013:   



State-inducement Versus Self-initiation: A Comparative Study of Micro and Small Enterprises in Ethiopia


The promotion of micro and small enterprises has been a centerpiece of the Ethiopian government’s strategy to alleviate urban unemployment among the youth since 2004. Since this time, the government has adopted twin strategies of creating a business environment conducive to start and operate MSEs while at the same time actively triggering the establishment of new MSEs. In this research, using a large dataset collected from 13 major cities in Ethiopia, we explore whether government-induced enterprises (cooperatives) differ from self-initiated enterprises (non-cooperatives) in various aspects of business productivity, business practices and performance. 

Girum Abebe



EDRI Working Paper 012:   



The case for industrial policy and its application in the Ethiopian cut flower sector


The floriculture industry has been one of the most spectacular growth successes in Ethiopia. It has been driven by a dynamic mixture of government action, foreign investment, and local entrepreneurship. We build the case for the use of innovate industrial policy regimes to support processes of structural transformation in low income countries. Further to this, we demonstrate how a complex array of state institutions helped support private-sector engagement and success in floriculture. 

Girum Abebe  and Florian Schaefer


EDRI Working Paper 011:  



High Hopes and Limited Successes:

Experimenting with Industrial Polices in the Leather Industry in Ethiopia Downloads


As early as the 1950s the Nobel Laureate economist Arthur Lewis (1955) claimed that ‘No country has made economic progress without positive stimulus from intelligent government’. The roles governments assume in the economy have since been the source of heated debates among academics and policy makers alike.

Girum Abebe and Florian Schaefer



EDRI Working Paper 010:  

Total Factor Productivity and Technical Efficiency in the Ethiopian Manufacturing Sector


Economic growth is largely dependent on the availability of reliable sources of energy. As an importer of oil and petroleum products, Ethiopia’s economy is potentially vulnerable to fluctuations in the world price of crude oil. The recent oil price shocks adversely affected oil-importing developing countries such as Ethiopia.

Melaku Abegaz


EDRI Working Paper 009:  

Ownership, Management Practices, Upgrading, and Productivity in the Metalworking sector: Evidence from Ethiopia

Girum Abebe



EDRI Working Paper 008:  

Implications of Oil Price Shocks and Subsidizing Oil Prices to the Ethiopian Economy: A CGE Analysis

Birouke Tefera, Frehiwot Fantaw and Zewdu Ayalew



EDRI Working Paper 007:  

Environmental Resource Collection versus Children’s Schooling: Evidence from Tigray, Northern Ethiopia

Bahre Gebru and Sosina Bezu




EDRI Working Paper 006:  

Does Electricity Supply Strategy Matter? Shortage and Investment: Reflections based on CGE Analysis

Ermias Engida, Eyasu Tsehaye and Seneshaw Tamru


EDRI Working Paper 005:  

Economic and Environmental Benefits of Forage Legume-Cereal Intercropping in the Mixed Farming System: A Case Study in West Gojam, Ethiopia

Menale Kassie


EDRI Working Paper 004:  

Road Sector Development and Economic Growth in Ethiopia

Ibrahim Worku


EDRI Working Paper 003:  

Fertilizer Consumption and Agricultural Productivity in Ethiopia

Kefyalew Endale


EDRI Working Paper 002:  

Analysis of Changes in Food Consumption Patterns in Urban Ethiopia

Tadesse Kuma


EDRI Working Paper 001:  

Tourist Flows and its Determinants in Ethiopia

Yabibal Mulualem Walle