Market Access

Collective action and property rights are two institutions that can significantly contribute to poverty reduction. Collective action aids in the efficient use and protection of natural resources and helps the poor secure land rights by advocating for themselves and their best interests. Secure individual or communal property rights to natural resources, such as land, water, trees, livestock, fish, and genetic resources, are vital to rural people’s livelihoods because they ensure income and provide incentives to invest in productive technologies and sustainably manage resources.

The livestock sector is a large contributor to the Ethiopian economy as well as a mainstay in the livelihoods of many Ethiopians. It comprised 11 percent of national GDP and 24 percent of agricultural GDP between the years of 1995/96 and 2005/06 (NBE 2005/06). Livestock production and markets vary substantially across space in Ethiopia due to a variety of reasons including topographical variations, market access, water availability, and population characteristics.

This study examines the relationship between transport infrastructure and agriculture in Sub-Saharan Africa using new data obtained from geographic information systems (GIS). First, the authors analyze the impact of road connectivity on crop production and choice of technology. Second, they explore the impact of investments that reduce road travel times. Finally, they show how this type of analysis can be used to compare cost-benefit ratios for alternative road investments in terms of agricultural output per dollar invested.