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The Impact of Location on Crop Choice and Rural Income: Evidences from Villages in Wollo, Ethiopia


This paper attempts to demonstrate how location of an agricultural economic activity in relation to urban centers determines households' decision to allot their agricultural land to the production of either staple crop or a high value but risky cash crop. By applying fractional logit estimation technique on data collected from villages in Wollo of the Amhara Regional State in 2006, it has been found that proximity to urban centers, access to road, and education along with other factors determine the crop choice in favor of the production of high value crops. While the purely liquid wealth positively affects the allocation of land for the production of cash crops, the direction of the impact of livestock on crop choice is found to depend on the particular location of the activities in relation to urban (market) centers. The pattern of crop choice has been translated into a variation in the level of per capita income across villages where the farthest with no access to road are the poorest.

Corporate Author: 
Worku Gebeyehu & Demirew Getachew (Editors); Ethiopian Economic Association. Bahir Dar Chapter
Ethiopia Economics Association (EEA)
Primary Descriptors: 

Agricultural land

Secondary Descriptor: 

Cash crop

Geographic Descriptors: 
Ethiopia (Wollo), Ama?ra kelel
Broad Subject heading: 
Agricultural economic
Call Number: 
330.963 PRO 2012
Serial Key Title: 
Proceedings of the Third Regional Conference of the Amhara Regional State Economic Development
Publication catagory: 
Content type: 
Forum or Discussion date: 
2013-02-27 00:00:00
Conference Place: 
Bahir Dar, Ethiopia
Place of publication: 
Addis Ababa, Ethiopia
Type of material: 
Current frequency: 
Thematic area: 
Regional Conference of the Amhara Regional State Economic Development
Chapter conference: 
Conference date: