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Amplification of agriculture factor productivity, food price and exchange rate on societal welfare spiraling in Ethiopia

The issue of welfare is a widespread issue that any country in the world would love to achieve. However, in Ethiopia, many societies are living in poverty because of high food prices emanating from fragile agricultural productivity and exchange rate devaluation. The aim of this study is to investiga...

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Autor principal: Alemu, Ferede Mengistie
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier 2022
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9508475/
https://www.ncbi.nlm.nih.gov/pubmed/36164512
http://dx.doi.org/10.1016/j.heliyon.2022.e10675
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author Alemu, Ferede Mengistie
author_facet Alemu, Ferede Mengistie
author_sort Alemu, Ferede Mengistie
collection PubMed
description The issue of welfare is a widespread issue that any country in the world would love to achieve. However, in Ethiopia, many societies are living in poverty because of high food prices emanating from fragile agricultural productivity and exchange rate devaluation. The aim of this study is to investigate the effects of agricultural factors productivity, food prices, and exchange rates on household welfare in Ethiopia. Based on the stochastic process of the variables, the autoregressive distributed lag model has been employed. The result of the model revealed that agricultural land productivity in the introduction episode depresses welfare and, latterly, it optimistically improves welfare. Nevertheless, labor productivity in agriculture has a negative impact on welfare. Furthermore, exchange rate depreciation and food price increases in Ethiopia endanger welfare by eroding purchasers' purchasing power and amplifying the divergence of demand and supply in the economy. To improve the welfare of society, the government and society should increase the productive capacity of domestic firms and the agriculture sector to the extent that offsets the exchange rate effects on welfare.
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spelling pubmed-95084752022-09-25 Amplification of agriculture factor productivity, food price and exchange rate on societal welfare spiraling in Ethiopia Alemu, Ferede Mengistie Heliyon Research Article The issue of welfare is a widespread issue that any country in the world would love to achieve. However, in Ethiopia, many societies are living in poverty because of high food prices emanating from fragile agricultural productivity and exchange rate devaluation. The aim of this study is to investigate the effects of agricultural factors productivity, food prices, and exchange rates on household welfare in Ethiopia. Based on the stochastic process of the variables, the autoregressive distributed lag model has been employed. The result of the model revealed that agricultural land productivity in the introduction episode depresses welfare and, latterly, it optimistically improves welfare. Nevertheless, labor productivity in agriculture has a negative impact on welfare. Furthermore, exchange rate depreciation and food price increases in Ethiopia endanger welfare by eroding purchasers' purchasing power and amplifying the divergence of demand and supply in the economy. To improve the welfare of society, the government and society should increase the productive capacity of domestic firms and the agriculture sector to the extent that offsets the exchange rate effects on welfare. Elsevier 2022-09-17 /pmc/articles/PMC9508475/ /pubmed/36164512 http://dx.doi.org/10.1016/j.heliyon.2022.e10675 Text en © 2022 The Author(s) https://creativecommons.org/licenses/by/4.0/This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).
spellingShingle Research Article
Alemu, Ferede Mengistie
Amplification of agriculture factor productivity, food price and exchange rate on societal welfare spiraling in Ethiopia
title Amplification of agriculture factor productivity, food price and exchange rate on societal welfare spiraling in Ethiopia
title_full Amplification of agriculture factor productivity, food price and exchange rate on societal welfare spiraling in Ethiopia
title_fullStr Amplification of agriculture factor productivity, food price and exchange rate on societal welfare spiraling in Ethiopia
title_full_unstemmed Amplification of agriculture factor productivity, food price and exchange rate on societal welfare spiraling in Ethiopia
title_short Amplification of agriculture factor productivity, food price and exchange rate on societal welfare spiraling in Ethiopia
title_sort amplification of agriculture factor productivity, food price and exchange rate on societal welfare spiraling in ethiopia
topic Research Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9508475/
https://www.ncbi.nlm.nih.gov/pubmed/36164512
http://dx.doi.org/10.1016/j.heliyon.2022.e10675
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