Research Repository :: Browsing by Author "Kidane, Asmerom W."

Browsing by Author "Kidane, Asmerom W."

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A Comparative Analysis of Technical Efficiency of Smallholder Tobacco and Maize Farmers in Tabora, Tanzania
(2015) Kidane, Asmerom W.; Tingum, Ernest T.
The study presented here considers the relative efficiency of planting tobacco and maize in the tobacco-producing Tabora region of Tanzania. The study used a 2013 survey that was conducted among smallholder farmers in the Tabora region. The aim was to investigate whether farmers are better off planting tobacco or maize. The paper briefly reviews the importance of agriculture in general and tobacco planting in particular on the Tanzanian economy. The paper then reviews the methodology used in the analysis, The Frontier Production Function. The findings show relative inefficiency in both tobacco and maize production. When the two are compared, one finds a statistically significant higher efficiency in the production of maize compared to tobacco. In other words, maize farmers can produce the same output utilizing 76.83% of the current input, while the corresponding value for tobacco is 73.89 percent. After generating the efficiency index of each farmer and for each crop, a multiple linear regression was estimated to identify significant determinants of efficiency. For the production of maize, five significant explanatory variables were identified (gender, age, education, household size, and farm size). For tobacco production, five explanatory variables including the variable “feeling sick while curing tobacco” were significant. In other words, the efficiency equation for maize has significantly better fit. In general, the efficiency indicators suggest that Tanzanian small scale farmers are more productive planting maize than tobacco.
The Demand for Cigarettes in Tanzania and Implications for Tobacco Taxation Policy
(2015) Kidane, Asmerom W.; Mduma, John K.; Naho, Alexis; Tingum, Ernest N.; Hu, Teh W.
The study attempts to estimate the demand for cigarettes in Tanzania and presents simulation results on the effect of the cigarette excise tax on smoking participation, government revenue, and related topics. After briefly summarizing the magnitude and spread of cigarette consumption in the country, the paper reviews some empirical estimates from African and other countries. The 2008 Tanzanian household budget survey was used to estimate the demand for cigarettes in Tanzania. The descriptive statistics suggest that the smoking prevalence for Tanzania is 15.35 percent with low variability across expenditure (income) groups. Smoking intensity and per capita consumption were estimated at 7.08 cigarettes and 1.33 cigarettes, respectively, a relatively low value. A two-part demand equation model was used to estimate various elasticities. For the overall equation, the price elasticities of smoking participation, smoking intensity, and total elasticity were estimated at -0.879, -0.853, and -1.732, respectively. Compared to similar results in other developing countries, the estimates appear quite high. When estimated by expenditure (income) groups, the magnitude of the elasticity appears higher among high expenditure groups than among low expenditure groups. Two simulation exercises were undertaken. First, the effect of different excise rates on smoking participation rate, cigarette consumption, tax revenue, and related responses was estimated and highlighted. Second, the same exercise was undertaken to determine the effect of a given increase in the cigarette excise tax on various expenditure groups. The overall results suggest that an increase in the excise tax on cigarettes in Tanzania would reduce cigarette consumption and increase government tax revenue.
Demand for Energy in Rural and Urban Centres of Ethiopia: An Econometric Analysis
(1991-04) Kidane, Asmerom W.
The paper starts by briefly discussing the current energy situation in Ethiopia. The major source of energy in Ethiopia is traditional and the major consumer is the household. A simple model of household utility function where energy consumption is the major variable is developed and a reduced form is derived. To make the model operational a simultaneous equation system describing the demand for and supply of traditional and modern energy sources has been specified. The model is closed by equating the demand for energy with the supply. Data from the national energy survey were used to estimate the model. The major finding of the study is that price of traditional energy plays an important role in the consumption of fuelwood and other traditional energy sources. By manipulating the price variable the government may be ale to control the high rate of depletion offorest resources.
Demographic Consequences of the 1984-1985 Ethiopian Famine
(Springer Link, 1989) Kidane, Asmerom W.
This article analyzes demographic responses to the 1984–1985 Ethiopian famine and compares them with Bongaarts and Cain’s (1982) hypothesized responses. After briefly describing the data collection, I estimate the age distribution and the age-specific mortality and fertility rates of Ethiopian famine victims in a resettlement area and compare these with mortality estimates for the 1972–1973 Bangladesh famine and with fertility estimates from the 1981 Ethiopian demographic survey. The results show that the mortality rate among Ethiopian famine victims was about seven times higher than the rate among the Bangladesh victims and that the Ethiopian famine-related mortality was general and not a function of household socioeconomic variables. The data also show a 26 percent lower total fertility rate among famine victims.
Digit Preference in African Survey Data and Their Impact on Parametric Estimates
(2009) Kidane, Asmerom W.
Most microeconomic and demographic variables in African countries are collected from sample surveys. Some are comprehensive and cover the whole country while others are region or area specific. In many large scale surveys an appropriate scientific method of sampling (usually multistage stratified cluster sampling) is adopted. However the responses may not be accurate. There are many reasons for wrong reporting such as memory lapse or deliberate attempt to underestimate (such as income) or overestimate (such as expenditure). The most common source of error is the tendency to provide numerical responses that end with certain digits, especially those that end with integer “zero”, followed by the integer “five”. A typical case is “age heaping” where individuals give their ages with umbers ending with these digits. The types of digit preference are not only limited to age reporting. When farmers are asked about acreage planted, amount harvested, number of cattle owned, output consumed and sold , distance from home to the nearest market etc., they appear to give numerical values that end with “zero” or “five”
Healthcare Cost of Smoking Induced Cardiovascular Disease in Tanzania
(2015) Kidane, Asmerom W.; Hepelwa, Aloyce; Tingum, Ernest N.; Hu, Teh W.
The study presented here estimates the total health care cost attributable to smoking induced cardiovascular disease in Tanzania. The study based on a survey conducted at a referral university hospital in Dar es Salaam in 2014. Assuming a 2% prevalence rate of cardiovascular disease and a population of 47.2 million, it was estimated that there are 943,800 cardiovascular patients in Tanzania. The proportion of ever smokers among the surveyed patients was found to be 25 percent yielding 240,400 patients who suffer from smoking induced cardiovascular diseases. Per capita annual expenditure per patient is estimated to be 566.6 US dollars and total annual expenditure for the country was estimated to be 136.1 million US dollars. On a per capita basis more direct and indirect cost is incurred on males compared to females; more is spent on the elderly (40 or more years) compared to the youth (less than 20 years). When compared with the mean annual household income of the surveyed population, the smoking induced per capita expenditure constitutes 35% of household income.
Impact of Smoking on Nutrition and the Food Poverty Level in Tanzania
(2015) Kidane, Asmerom W.; Mduma, John K.; Naho, Alexis; Hu, Teh W.
This study considers the effect of household cigarette expenditure on food poverty indicators in Tanzania. We first compare expenditure patterns as well as the household size of non-smokers and smokers. We find that the majority of non-smokers and smokers have low incomes, and that the mean total per capita expenditure (proxy for income) of non-smokers is slightly higher than those of smokers. On the other hand, the mean household size of non-smokers was smaller compared to that of smokers suggesting that smokers should have spent more on food. Next, we estimate and compare daily calorie intake between both groups. Almost 19 percent of non-smokers were found to be below the poverty line. The corresponding value for smokers was almost 24 percent. Estimates from a multiple linear regression on the determinants of per capita daily calorie intake reveal that per capita cigarette consumption appears to negatively affect daily calorie intake significantly. Given that the majority of all respondents belong to a low income group, this suggests that expenditure on cigarettes may be at the expense of calorie intake.
A Macroeconomic-Demographic Model for Ethiopia: Specification, Estimation and Simulation
(Initiatives Publishers, 1991) Kidane, Asmerom W.
The population variable was not given due attention by classical and development economists until the early 1950s. The earliest "economic demographer", Malthus, tried to show that a high rate of population growth would eventually lead to a negative marginal product of labour and that this would, in turn, lead to a high mortality rate. Malthus stated that the equilibrium between man, capital and land would be retained through what he called positive and preventive checks
Mortality Estimates of the 1984–1985 Ethiopian Famine
(1990) Kidane, Asmerom W.
A brief summary of famine and drought from a historical perspective is given. In an attempt to estimate the magnitude of deaths due to the 1984-85 famine in Ethiopia, a survey was conducted among the resettled famine victims. The results show that the expected life at birth among the male and female famine victims was 6.2 and 5.7 years, respectively. When compared with the highest mortality rates ever recorded (that is Coale-Demeny, West Model Life Table level 1), the Ethiopian famine induced rate seems to be considerably higher. Regional variations between the two famine affected regions show that mortality in Tigrai was slightly higher than that of Wello. Also prefamine socio-economic differentials between households did not seem to have an effect on mortality. The results suggest that as much as 700,000 excess deaths might have occurred during the 1984-85 famine period in Ethiopia.
The Poverty Demography Trap in Third World Countries: Empirical Evidence from Tanzania
(2010) Kidane, Asmerom W.
This study suggests that reducing fertility should be a primary policy variable used in concert with macroeconomic policies and poverty reduction strategies. It empirically verifies the existence of a poverty demography trap by analyzing survey data from two regions in northern Tanzania. It first summarizes the macro and microeconomic issues of the relationship between GDP and population growth, highlighting poverty and demographic variables in Africa and in Tanzania. The number of children ever born (CEB) and household size in the study area indicate a high rate of population growth. Non-nuclear household members are about 23 percent, indicating heavy population pressure on household resources. The demographic variables were classified with selected poverty indicators (undernutrition and malnutrition; monetary expenditure; and access to land, clean water, sanitary facilities, and energy sources). The results showed moderate undernutrition and acute malnutrition associated with CEB and household size. Large households tend to spend much less on food, compared to smaller households. The mean weekly expenditure among households with six members is a meager US$5. As much as 50 percent of farming households do not own land and depend on wood for energy needs. Access to clean water, modern toilet facilities, and electricity is very poor, especially among large households. Getting out of the poverty trap implies reducing fertility and vice versa.
Production Technologies in Ethiopian Agriculture
(Elsevier, 1994) Kidane, Asmerom W.; Abler, David G.
This article examines the characteristics of and choice among two production technologies in Ethiopian agriculture, one with fertilizer and the other without, using 1989-90 farm-level data. For northwest and central Ethiopia, fertilizer usage determinants are estimated simultaneously with technology-specific production functions. For southern Ethiopia, where fertilizer is rarely used, a single production function is estimated. Three conclusions emerge. First, fertilizer use is not significantly affected by a farm's stocks of capital or land. This is consistent with the fact that fertilizer allocation decisions under the deposed Mengistu regime were politicized to the point where farmers had little control over use. Second, fertilizer is associated with a smaller factor share for cattle and a larger share for land, meaning that those who control land may gain relative to the individual farmers who own cattle as the country develops agriculturally. Third, farms without fertilizer in northwest and central Ethiopia tend to be too small, a problem due to population pressures on the land and communal methods of land allocation. This suggests that land allocation institutions should adjust by distributing land to a smaller but more economically viable number of farmers.
Real Exchange Rate Price and Agricultural Supply Response in Ethiopia: The Case of Perennial Crops
(The African Economic Research Consortium, 1999-11) Kidane, Asmerom W.
In this study the relationship between RER, price and supply response of coffee is described in detail. The objective is to see if devaluation affects RER agricultural price and supply of coffee—a perennial crop that is the major source of foreign exchange of Ethiopia. After developing a model of perennial crop supply, panel data were gathered from small-scale farmers. Both descriptive statistics as well as the econometric estimates (where fixed effect model was applied) showed that there was positive response for both the short run and the long run. In the former farmers were able to increase yield through increased use of labour and fertilizer on existing stock of trees. There was also an increase in the uprooting of old trees and replacing them by new ones, as well as the use of extra acreage at the expense of other perennials and annuals
Trade and Resources: Welfare effects of the Lake Victoria fisheries boom
(Elsevier, 2012-01) Eggert, H.; Greaker, Mads; Kidane, Asmerom W.
In this paper we examine the welfare implications of the Tanzanian fisheries boom following from the increase in quantities and prices of the Lake Victoria Nile perch export during 1993-2008. We use the theoretical model by Brander and Taylor (1997) that we try to test empirically. We have a micro level perspective using data from a 1993 World Bank household survey and our own study from 2008, both containing data from about 520 households in the two regions Mwanza and Mara by the lake. Our results indicate that average income has increased in both rural and urban areas. For the poorest part of the population, rural areas experienced only modestly and non-significantly reductions in the fraction below basic needs, while urban areas had a substantial reduction. However, growth was modest and inequality seems to have increased during the period. Concerning human capital measured as education for the household head we found substantial improvements in educational level and a simple regression model confirmed the significant impact of education on household income. We also found that households on average are better off when situated close to the lake.

Browsing by Author "Kidane, Asmerom W."

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