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The Legacy of State Farms on Ethiopia’s Spatial Structural Transformation
Young, Henry Larkin
Young, Henry Larkin
Abstract
This paper analyzes the determinants of Ethiopian commercial farm and agroprocessing agglomeration patterns. State farm investments during the Derg regime (1974-1991) altered the geospatial distribution of commercial farmland, and concurrently agroprocessing production. Agglomeration patterns have stronger relationships with horticulture state farms due to infrastructure investments implemented by state farm planners. Agroprocessing firms also gain productivity advantages by sourcing inputs domestically, but recent value added growth in the agroprocessing sector was not attributed to commercial farm production growth. Finally, without the government acting as the main coordinating agency to develop commercial farm infrastructure within low-lying regions, high-value cash crop and agro-processing production will be constrained by historic state farm determinants.
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Date
2020-05-01
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Economics