Transformation and Vulnerability in Ethiopia Symposium 2016

1. ETHIOPIAN DEVELOPMENT
RESEARCH INSTITUTE
Rural roads, welfare and nutrition
David Stifel (Lafayette College) and Bart Minten (IFPRI)
IFPRI ESSP
Transformation and vulnerability in Ethiopia: New evidence to inform policy and
investments
Getfam Hotel, Addis Ababa
May 27, 2016
1

2. 2
The Question:
What are the impacts of
improved market access on
household well-being and
nutrition?
To what can we attribute
these impacts?

3. 3
Data
• Sample area selected purposefully
o Homogeneous region
o Except for transport costs
o Without a road
• Households’ circumstances differ because of
different transport costs…
…not because of land characteristics, etc.

4. 4

5. 5
Market Access – Transport Costs
• Donkey costs (Birr/kg)
o Cost of renting donkey
o Weight donkey can carry
• Economic transport costs
o Include the opportunity
cost of time

6. 6
Household Per Capita Consumption &
Market Access
0
500
1000150020002500
Birr/person
0 20 40 60 80
Transport Cost (Birr/kg)
Per Capita Household Consumption Food
Non-Food

7. 7
Food Security
0
.1.2.3
Least Remote Quintile 2 Quintile 3 Quintile 4 Most Remote
Worry Not Enough Food in Past 30 Days
1-2 Times 3-10 Times
10+ Times

8. 8
Food Security
0
.1.2.3
Least Remote Quintile 2 Quintile 3 Quintile 4 Most Remote
Ate Fewer Meals in Past 30 Days
1-2 Times 3-10 Times
10+ Times
0
.1.2.3
PercentofHouseholds
Least Remote Quintile 2 Quintile 3 Quintile 4 Most Remote
Ate Smaller Meals in Past 30 Days
1-2 Times 3-10 Times
10+ Times

9. 9
Dietary Diversity
0123456
0 20 40 60 80
Transport Cost (Birr/kg)
All Household Members Chldren under age 5
Average Number of Food Groups in Household Diet

10. 10
Child Stunting-6-2
026
0 20 40 60 80
Transport Costs (Birr/Quintal)
bandwidth = .8
Stunting: HAZ < -2
• 36 percent stunted
• Statistically not
different by
remoteness

11. 11
What can explain the relationship between
market access and wellbeing?
1. Agricultural Production
2. Terms of trade
o Marketed surplus
o Purchased consumption items

12. 12
Value of HH Agric Production
0
200040006000
Birr
0 20 40 60 80
Transport Cost (Birr/kg)
Total Production Cereals
Oilseeds Vegetables
Despite similarities in
land productivity…

13. 13
Household Marketed Surplus
0
200040006000
Birr
0 20 40 60 80
Transport Cost (Birr/kg)
Total Production Marketed Surplus
Own Consumption

14. 14
Household Food Consumption & Market
Access
0
500
1000150020002500
Birr/person
0 20 40 60 80
Transport Cost (Birr/kg)
Per Capita Food Consumption Purchased
Own-Consumption

15. 15
Household Food Purchases
0
10002000300040005000
Birr
0 20 40 60 80
Transport Cost (Birr/kg)
Total Food Purchases Meat
Beverages Cereals
Spices (incl salt & sugar)

16. 16
Conclusions
Households with greater
market access have…
• Greater consumption
• More food security
• Greater dietary
diversity

17. 17
Conclusions
These differences may be
attributed to…
• Greater agricultural
production
• Improved terms of trade
that result in increased…
o Marketed agricultural
surplus
o Purchased consumption
goods

18. 18
Conclusions
• But, no discernable effects on nutrition outcomes
• Why?
o Number of food groups low for all households
o Food consumption alone is not enough to affect
nutrition outcomes
o Limited access to clean water, sanitation & healthcare
throughout the survey area