@article{Ademe:343263,
      recid = {343263},
      author = {Ademe, Alelign and Mehare, Abule },
      title = {Agricultural Transformation Performance and Inter-Sectoral  Linkages in Ethiopia},
      journal = {Ethiopian Journal of Economics},
      address = {2023-04-01},
      number = {683-2024-3055},
      month = {Apr},
      year = {2023},
      abstract = {The motivation for agricultural transformation is  basically linked with structural relationships among  sectors of the economy; transforming one sector cannot be  successful without the corresponding transformation of the  other. Therefore, this study assessed the performance of  agricultural transformation and analyzed the linkage  between agricultural and other sectors of the economy in  Ethiopia using time-series data retrieved from the World  Bank (WB) and FAOSTAT databases (1981-2019). The study  employed trend analysis and the Vector Error Correction  Model (VECM) which incorporated inter-sectoral linkages in  the Ethiopian economy. In the trend analysis, though  positive changes have been observed, agricultural  transformation did not achieve the intended outcomes in  terms of sustainability, productivity technical change,  food self-sufficiency, and expansion of agro-industries,  which calls government attention to a swift shift to  market-oriented commercial farming involving mechanization.  The model result illustrates how the linkages across  different sectors vary in the short-run and long-run. In  the short-run, the industrial sector has a negative effect  on the performance of the agricultural sector, whereas the  agricultural sector in turn affects the value added in the  industrial sector positively. In the longrun, there was  exhibited a positive and significant linkage between  industrial and agricultural sectors. Thus, it needs to  strengthen the effective use and adoption of new  agricultural technologies in Ethiopia due to the existing  negative short-run agriculture-industry relationship. The  macroeconomic policy should also take into account the  possible long-run interdependencies between agriculture and  other sectors of the economy by giving emphasis to the  problem of transferring resources from agriculture to other  sectors and vice versa.},
      url = {http://ageconsearch.umn.edu/record/343263},
      doi = {https://doi.org/10.22004/ag.econ.343263},
}