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Assessing the Impacts of Productive Safety Net Programme on Smallholder Farmers Expenditure in West Hararghe Zone, Oromia Region, Ethiopia

Published in Economics (Volume 11, Issue 4)
Received: 20 October 2022     Accepted: 12 November 2022     Published: 29 November 2022
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Abstract

Productive Safety Net Program is implementing smoothing consumption and protecting asset depletion in the study areas. Thus, the purpose of this study were to assess the impact of productive safety net program on smallholder farmer’s expenditure and analyze factors affecting participation of smallholder farmers in productive safety net program in the study area. For this study both primary and secondary data were used. Primary data were collected from 264 households (114 users and 150 non-users) and supported by secondary data. To address the aforementioned objectives descriptive statistics and econometric models (Propensity score matching (PSM) and Logit model) were employed. The econometric result of Logit model indicated that the likelihood of participating in the program was positively affected by age and marital status, while income obtained from farm, food aid and extension service accessibility was affected negatively the participation of household in PSNP. The PSM estimation results revealed that participation in PSNP had brought significant impact on household expenditures. Those households participated in PSNP in the study area uses the PSNP income mainly for home expenditure purpose. It can be recommended that policy makers should have to give attention in designing and implementing PSNP through giving care for youth age participants, strength extension services and availing fund timely.

Published in Economics (Volume 11, Issue 4)
DOI 10.11648/j.eco.20221104.13
Page(s) 190-199
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

Expenditure, Logit Model, PSM, PSNP, Impact

References
[1] Alemayehu Seyoum, Hoddinott Jone, and O, Daniel Gilligan. (2008). An analysis of Ethiopia’s Productive Safety Net Program and its linkages. International Food Policy Research Institute. Washington, D. C.
[2] Andersson, Camilla Alemu Mekonnen, and Stage, Jesper. 2009. Impacts of the Productive Safety Net Program in Ethiopia on Livestock and Tree Holdings of Rural Households. Environment for Development; Discussion Paper Series.
[3] Bryson, A., Dorsett, R. and Purdon, S. 2002. The Use of Propensity Score Matching in the Evaluation of Labour Market Policies, Working Paper No. 4, Department for Work and Pensions.
[4] DDAO (Doba District Office of Agriculture). 2019. Agricultural Office Annual Report, 2019: Doba, West Hararghe zone, Oromia region, Ethiopia.
[5] Dehejia, R. H. and Wahba, S. 2002. Propensity Score-matching Methods for non-experimental Causal Studies. The Review of Economics and Statistics, 84 (1): 151–161.
[6] Gashaw Desalegn and Seid Nuru (2018). Review of the impact of Productive Safety Net Program (PSNP) on rural welfare in Ethiopia, ZEF Working Paper Series, No. 173, University of Bonn, Center for Development Research (ZEF), Bonn.
[7] GDAO (Gemechis District Office of Agriculture). 2019. Agricultural Office Annual Report, 2019: Gemechis, West Hararghe zone, Oromia region, Ethiopia.
[8] Gillingan, O., Hodddinot, J., Seyoum, T., and Alemeyehu (2009). The Impact of Productive Safety Net Program and its linkages. Journal of development studies, 45 (10), 1684- 1706.
[9] Hayalu Godefey. 2014. Assessment of Factors Affecting Household Level Graduation from Productive Safety Net Program (PSNP): Evidence from Emba Alaje District of Southern Tigray, Northern Ethiopia. MSc. Thesis, Mekele University, Mekele, Ethiopia.
[10] Heckman, H. and Todd, P. 1998. Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Program. Review of Economic Studies, 64: 605-654.
[11] Lane, F. C., To, Y. M., Shelley, K. and Henson, R. K. 2012. An Illustrative Example of Propensity Score Matching with Education Research; Career and Technical Education Research, 37 (3): 187-212.
[12] MDAO (Mieso District Office of Agriculture). 2019. Annual Report, 2019: Gemechis, West Hararghe zone, Oromia region, Ethiopia.
[13] Ministry of Agriculture and Rural Development (MoARD). 2006. Productive Safety Net Program: Program Implementation Manual. Addis Ababa.
[14] Pradhan, M. and Rawlings, L. B. 2002. The Impact and Targeting of Social Infrastructure Investments: Lessons from the Nicaraguan Social Fund. The World Bank Economic Review, 16 (2): 275-295.
[15] Tadele Mamo. 2011. Impact of Productive Safety Net Program on Asset Accumulation and Sustainable Land Management Practices in The Central Rift Valley: The Case of Adami tulu Jido Kombolcha and Meskan Districts. MSc. Thesis Haramaya University, Haramaya, Ethiopia.
[16] WHAO (West Hararghe Zone Office of Agriculture), 2019. Annual report. Chiro. Ethiopia.
[17] World Bank Group. 2019. Ethiopia’a Steady Economic Growth Leads to Poverty Reduction. Group Report.
[18] Yitagesu Fikadu. 2014. Impact of Productive Safety Net Program (PSNP) on Food Security in Ethiopian Somali Region: The Case of Keberibeyah Woreda. MSc. Thesis Addis Ababa University, Addis Ababa, Ethiopia.
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  • APA Style

    Birhanu Angasu, Nimona Sime, Gosa Alemu. (2022). Assessing the Impacts of Productive Safety Net Programme on Smallholder Farmers Expenditure in West Hararghe Zone, Oromia Region, Ethiopia. Economics, 11(4), 190-199. https://doi.org/10.11648/j.eco.20221104.13

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    ACS Style

    Birhanu Angasu; Nimona Sime; Gosa Alemu. Assessing the Impacts of Productive Safety Net Programme on Smallholder Farmers Expenditure in West Hararghe Zone, Oromia Region, Ethiopia. Economics. 2022, 11(4), 190-199. doi: 10.11648/j.eco.20221104.13

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    AMA Style

    Birhanu Angasu, Nimona Sime, Gosa Alemu. Assessing the Impacts of Productive Safety Net Programme on Smallholder Farmers Expenditure in West Hararghe Zone, Oromia Region, Ethiopia. Economics. 2022;11(4):190-199. doi: 10.11648/j.eco.20221104.13

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  • @article{10.11648/j.eco.20221104.13,
      author = {Birhanu Angasu and Nimona Sime and Gosa Alemu},
      title = {Assessing the Impacts of Productive Safety Net Programme on Smallholder Farmers Expenditure in West Hararghe Zone, Oromia Region, Ethiopia},
      journal = {Economics},
      volume = {11},
      number = {4},
      pages = {190-199},
      doi = {10.11648/j.eco.20221104.13},
      url = {https://doi.org/10.11648/j.eco.20221104.13},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20221104.13},
      abstract = {Productive Safety Net Program is implementing smoothing consumption and protecting asset depletion in the study areas. Thus, the purpose of this study were to assess the impact of productive safety net program on smallholder farmer’s expenditure and analyze factors affecting participation of smallholder farmers in productive safety net program in the study area. For this study both primary and secondary data were used. Primary data were collected from 264 households (114 users and 150 non-users) and supported by secondary data. To address the aforementioned objectives descriptive statistics and econometric models (Propensity score matching (PSM) and Logit model) were employed. The econometric result of Logit model indicated that the likelihood of participating in the program was positively affected by age and marital status, while income obtained from farm, food aid and extension service accessibility was affected negatively the participation of household in PSNP. The PSM estimation results revealed that participation in PSNP had brought significant impact on household expenditures. Those households participated in PSNP in the study area uses the PSNP income mainly for home expenditure purpose. It can be recommended that policy makers should have to give attention in designing and implementing PSNP through giving care for youth age participants, strength extension services and availing fund timely.},
     year = {2022}
    }
    

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    AU  - Birhanu Angasu
    AU  - Nimona Sime
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    DO  - 10.11648/j.eco.20221104.13
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    AB  - Productive Safety Net Program is implementing smoothing consumption and protecting asset depletion in the study areas. Thus, the purpose of this study were to assess the impact of productive safety net program on smallholder farmer’s expenditure and analyze factors affecting participation of smallholder farmers in productive safety net program in the study area. For this study both primary and secondary data were used. Primary data were collected from 264 households (114 users and 150 non-users) and supported by secondary data. To address the aforementioned objectives descriptive statistics and econometric models (Propensity score matching (PSM) and Logit model) were employed. The econometric result of Logit model indicated that the likelihood of participating in the program was positively affected by age and marital status, while income obtained from farm, food aid and extension service accessibility was affected negatively the participation of household in PSNP. The PSM estimation results revealed that participation in PSNP had brought significant impact on household expenditures. Those households participated in PSNP in the study area uses the PSNP income mainly for home expenditure purpose. It can be recommended that policy makers should have to give attention in designing and implementing PSNP through giving care for youth age participants, strength extension services and availing fund timely.
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Author Information
  • Oromia Agricultural Research Institute, Mechara Agricultural Research Center, Mechara, Ethiopia

  • Oromia Agricultural Research Institute, Mechara Agricultural Research Center, Mechara, Ethiopia

  • Oromia Agricultural Research Institute, Mechara Agricultural Research Center, Mechara, Ethiopia

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