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17Th IC Proceedings Ethiopian Economics Association (EEA) and Ethiopian Strategy Support Program (ESSP) of IFPRI PROCEEDINGS OF THE SEVENTEENTH INTERNATIONAL CONFERENCE ON THE ETHIOPIAN ECONOMY Edited by Mengistu Ketema Published: July 2020 © Ethiopian Economics Association (EEA) All rights reserved ISBN – 978-99944-54-75-4 Text layout: Rahel Yilma Partners of all activities of EEA are Friedrich Ebert Stiftung of Germany (FES), Think Tank Initiative of the International Development Research Center (IDRC) of Canada, and Civil Society Support Program (CSSP) The 17th International Conference was co-organized by the Ethiopian Strategy Support Program (ESSP) – the collaborative program of the International food Policy Research Institute (IFPRI) and the Ethiopian Development Research Institute (EDRI). The 17th International Conference was co-sponsored by IFPRI/ESSP, Initiative Africa, Friedrich Ebert Stiftung of Germany, UNECA, the World Bank, International Growth Center (IGC), APRA/IDS, CEPHEUS/Growth Capital Partners, and Frontieri. ii FOREWORD The Ethiopian Economics Association (EEA) is happy to issue the proceedings of the 17th International Conference (the 28th Annual Conference) on the Ethiopian Economy that was held from July 18 to 20, 2019 at EEA Multi-purpose Building Conference Hall. EEA has been organizing annual conferences on the Ethiopian Economy every year as part of its overall objectives of promoting the development of economics profession in Ethiopia and contributing to the policy formulation and implementation process of our country through research, training, public dialogue forums and publications and dissemination activities. EEA had launched its international conference series in June 2003, after organizing 11 annual national conferences. This series has proved to be an excellent forum at which not only resident Ethiopian researchers, but also Ethiopian researchers based abroad as well as non-Ethiopian researchers throughout the world conducting research on Ethiopia, or more widely, present and discuss research findings. This year’s conference, as was last eight years, has been co-organized by the Ethiopian Strategy Support Program (ESSP) – the collaborative program of the International food Policy Research Institute (IFPRI) and the Ethiopian Development Research Institute (EDRI). It was also co-sponsored by IFPRI/ESSP, Initiative Africa, Friedrich Ebert Stiftung of Germany, UNECA, the World Bank, International Growth Center (IGC), APRA/IDS, CEPHEUS/Growth Capital Partners, Frontieri, etc. The Association well recognized the support of sponsors and partners institutions during the opening and closing time of the conference and by displaying the support at the conference program, which has been distributed to all participants and medias; and banners at different corners of the venue. At the conference about 50 presentations were made in four plenary, three parallel sessions and two panel discussions with the attendance of about 950 persons in three days. In addition, one key note speech was also organized. Out of the total 50 presentations, about 26 were presented by partner institutions like IFPRI- ESSP, International Growth Centre (IGC), United Nation Economic Commision for Africa (UNECA), the World Bank, etc. The rest 24 papers were presented by individual researchers. iii The 17th International Conference on the Ethiopian Economy was opened by H.E. Dr. Eyob Tekalgn Tolina, State Minster of the Ministry of Finance of the Federal Democratic Republic of Ethiopia at the presence of higher dignitaries and invited guests. The presence of H.E. Dr. Eyob Tekalgn, who greatly honored us by opening officially the conference and explaining the Government direction of the Economic Reform Program demonstrate the value of the conference to the economic policy making process of the country. H.E. Dr. Eyob Tekalgn not only graced the conference by officially opened the conference, but also by attending all events of the conference up to coffee break that include Presidential Address by Dr. Abebe Aemro Selassie, African Director of IMF, delivering Honoring Certificates to key partner institutions and attending the Launching of Oxford Handbook of the Ethiopian Economy. The participants of the conferences were drawn from different international organizations, Federal and Regional Government Offices, Universities and Colleges across the country, Civil Society Organizations, local and international Research institutes and scholars from universities across Europe and Africa. The editorial committee reviewed papers that were presented for the publication of the proceedings of the conference and communicated its comments and suggestions including editorial comments to authors. After passing all these process and language editing, the editorial committed selected 15 papers to be included in the proceedings. At this juncture, on behalf of the Ethiopian Economics Association, I would like to thank the Ethiopian Strategic Support Program (ESSP) of the International Food Policy Research Institute (IFPRI), for being a regular co-organizer of the EEA’s International conferences since 2010. My appreciation also goes to the authors of the papers and the conference participants whose active participations made the conference meaningful and dynamic. The many professionals who dedicated their time to the conference and served as chairpersons deserve due thanks for their special contributions. The staffs of the EEA and Executive Committee of the Ethiopian Economics Association deserve a special recognition for their enthusiasm and perseverance in managing the conference from inception to completion. iv I also want to extend my personal gratitude to the members of the Executive Committee of the Ethiopian Economics Association for the dedicated services and the leadership they provided to the Association. Our special thanks go to our partners who have shared our vision and provided us with generous financial support to operationalize the activities of EEA. These include, Think Tank Initiative of the International Development Research Center (IDRC) of Canada and the Friedrich Ebert Stiftung of Germany. I would like also to extend my sincere gratitude to H.E. Dr. Eyob Tekalgn Tolina, and Dr. Abebe Aemro Selassie for their insightful address; and other senior government officials who spared their busy schedule and participated in the conference. Finally, I would like to convey the message that our Association is willing to strengthen its capacity and seek new ways of addressing the economic problems and to be of better service and to meet the expectations of its members and the public at large. Tadele Ferede (PhD) President Ethiopian Economics Association v TABLE OF CONTENTS The Inter-linkage between Institutional Quality and Economic Development in some Selected African Countries: Panel Data Approach ............................................................................................ 1 Wondatir Atinafu Explaining Macroeconomic Fluctuations in Ethiopia: The Role of Monetary and Fiscal Policies.................................................... 29 Alemu Lambamo Evaluating the Relative Importance of the Channels of Monetary Policy Transmission in Ethiopia ......................................................... 63 Abate Yesigat Nexus Between Economic Growth, Unemployment and Inflation in Ethiopia .................................................................................. 85 Adem Feto Bedhaso and Jayamohan M.K. Government Revenue, Expenditure and Fiscal Deficits in Ethiopia: An asymmetric Co-integration Approach .................................... 109 Hussein Oumer and Gollagari Ramakrishna Intertemporal Government Budget Constraint: Debts and Economic Growth in Ethiopia, 1990–2018 .............................................. 137 Jimmy Alani Poverty and Inequality in Ethiopia: How Long Would It Take to Exit Poverty? ............................................................................... 165 Degye Goshu Identifying, Explaining, and Solving Ethiopia’s Development Puzzle: Some exploratory research .................................................... 197 Amdissa Teshome, vi Youth Economic Empowerment for Sustainable Development: Insights from Urban Ethiopia ............................................................. 227 Sinidu W. Kebede and Netsanet Teklehamanot Rural-urban Differentials in Under-Five Child Mortality: Empirical Evidence from Ethiopia ......................................................... 257 Yibrah Hagos Gebresilassie, Phocenah Nyatanga and Mekonen Aregai Gebresilassie Impact of Credit Constraints and Climate Variability on Agricultural Productivity: Panel Data Evidence from Rural Ethiopia ......... 271 Hailu Elias Vulnerability to Drought from Spatial and Temporal Perspectives Using Rainfall and NDVI data: A Case Study from Selected agricultural and pastoral rangelands of Ethiopia ....................................... 301 Feleke Asrat, Mintewab Bezabih, Hailu Elias, Getnet Alemu and Tassew Woldehanna School Readiness: Differences Between Children with Kindergarten and O-Class Background in Selected Pre-primary Schools in Addis Ababa ................................................................................... 319 Fitsum Zewdu Mulugeta and Fitsum Dagmawi Determinants of Commercialization of Maize: Evidence from Smallholder Farmers in Sidama Zone, Southern Ethiopia .......................... 360 Debela Geleta Determinants of Under-Five Child Mortality in Benishangul-Gumuz Regional State of Ethiopia ....................................................
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