Emerta Aragie

Modeling crop-livestock interactions in semi-subsistence economies

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.

The impact of large-scale agricultural investments in low-income economies

Recent years have witnessed an increasing interest in large-scale agricultural land acquisitions in developing countries. The accompanying socio-economic implications have been areas of debate among politicians, policymakers and development agents. This paper argues that the traditional way of simulating the impacts of these investments in developing countries is misleading as the approach implies that the new investments are identical to the semi-subsistence way of farming that dominates agricultural practices in the host countries. In this study, we incorporate the peculiarity of large-scale agro-investments into an existing database for economy-wide models, i.e., social accounting matrix (SAM), and capture welfare and distributional outcomes properly. SAM-based multiplier models applied to Ethiopian data justify the need to account for the peculiarity of the investments in terms of production technology and their geographic distribution.

The effect of price support policies under productivity shocks: Evidence from an economywide model