1. Finance and Poverty in Ethiopia: A Household Level Analysis
- Author:
- Alemayehu Geda, Daniel Zerfu, and Abebe Shimeles
- Publication Date:
- 05-2006
- Content Type:
- Working Paper
- Institution:
- United Nations University
- Abstract:
- In this paper, using the rich household panel data of urban and rural Ethiopia that covers the period from 1994 to 2000, we attempted to establish the link between finance and poverty in Ethiopia. Our results show that access to finance is an important factor in consumption smoothing and hence poverty reduction. We also found evidence for a poverty trap due to liquidity constraints that limits the ability of the rural households from consumption smoothing. The empirical findings from this study could inform finance policies aimed at addressing issues of poverty reduction.
- Topic:
- Development, Economics, and Poverty
- Political Geography:
- Africa and Ethiopia