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Impact of Wheat Cluster Farming Practice on Smallholder’s Asset Building in Arsi Zone of Ethiopia
Getachew Nigussie Tefera,
Mengistu Ketema Aredo,
Zekariyas Shumeta Nejo,
Kedir Jemal Ibrahim
Issue:
Volume 8, Issue 1, March 2023
Pages:
1-11
Received:
17 February 2023
Accepted:
3 April 2023
Published:
20 April 2023
Abstract: Agriculture is the main focus of Ethiopia's economic development. It accounts for about 32.7% of the country’s GDP (NBE, 2020). Wheat is one of the major cereal crops produced by smallholder farmers in Ethiopia. Wheat demand is rising quickly in Ethiopia despite efforts to improve wheat production. Recently, to curb this problem, the government of Ethiopia has set up a cluster farming system for high-potential crops like wheat as a means of improving productivity and maximizing the income of smallholder farmers. In light of the problems and the research gaps identified, this study seeks to address the impact of wheat cluster farming practices on stallholder’s asset building in the Arsi Zone of Ethiopia. Data was collected from 383 sample wheat-producing households. The data was analyzed using descriptive statistics and propensity score matching model. The propensity score matching model of the average treatment effect on the treated result revealed that wheat cluster farming participation had a significant impact on the smallholders’ asset building. It has been found that, on average, participation in wheat cluster farming has increased smallholders' asset building by ETB 8014.13 (148.69$) for wheat cluster participants as compared to non-participants. Hence it was concluded that cluster farming has improve wheat production which is the major source of income to build asset of the study areas smallholders. Therefore, stakeholders should develop strategies to promote and scale up cluster farming practices. As a result, smallholder farmers will use the extra wheat produced by cluster farming to accumulate more assets and thus raise their standard of living.
Abstract: Agriculture is the main focus of Ethiopia's economic development. It accounts for about 32.7% of the country’s GDP (NBE, 2020). Wheat is one of the major cereal crops produced by smallholder farmers in Ethiopia. Wheat demand is rising quickly in Ethiopia despite efforts to improve wheat production. Recently, to curb this problem, the government of ...
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The Upgraded Complex of Payment Methods Following Expansion of Contract Manufacturing in International Trade
Andrius Jarzemskis,
Ilona Jarzemskiene
Issue:
Volume 8, Issue 1, March 2023
Pages:
12-21
Received:
17 March 2023
Accepted:
6 April 2023
Published:
10 May 2023
Abstract: The problem of payment for goods in international trade is associated with the risk experienced by both the seller and the buyer. Various scholars have been conducting research in this area for five decades, and the business literature and literature for university students include a complex of methods in which payers operate in international trade transactions. On one side of the block-shape complex, it is customary to display the payment methods that pose the greatest risk to an exporter, and on the other side of the block-shape complex, the methods that pose the least risk to an exporter. The same methods, in reverse order, have the lowest risk for an exporter on the first side of the block-shape complex and the highest risk for an importer on the right side of the block-shape complex. In principle, such a block-shape complex is represented by many authors by stylizing graphically and describing the advantages and disadvantages of each method. According to the classic block-shape complex, the lowest risk for an exporter is to receive money in advance, the higher risk is to sell under a letter of credit - a letter of credit, the medium risk is to sell under the documentary collection method, and the highest risk is for the open account method and consignment. From an importer's point of view, these risks are in reverse order. The lowest risk for an importer is the consignment method, the following methods are arranged in order of increasing risk as follows: open account, document collection, letter of credit and prepayment. All these methods are represented in the classical complex, not reflecting the contractual case of production. The authors of the article conducted a qualitative study among the contract manufacturers of goods operating in Eastern Europe and importers of their products - brand owners. The conducted research allows to include the method of payment before production into the classic complex of five payment methods.
Abstract: The problem of payment for goods in international trade is associated with the risk experienced by both the seller and the buyer. Various scholars have been conducting research in this area for five decades, and the business literature and literature for university students include a complex of methods in which payers operate in international trade...
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The Effect of Inflation on Economic Growth in Tanzania for the Period of 1970-2020
Goodluck Sanga,
Mukole Kongolo,
Rosemary Mnongya
Issue:
Volume 8, Issue 1, March 2023
Pages:
22-31
Received:
16 October 2022
Accepted:
31 October 2022
Published:
22 May 2023
Abstract: The research examines the effect of inflation on economic growth in Tanzania. The study employs the secondary time series data from 1970 to 2020 taken from the Bank of Tanzania, and the VECM is used to find the cointegration between variables to show the short-run and long-run dynamics. Graphical analysis and Augmented Dickey-Fuller tests are conducted to find the unit root in the model. All variables are stationary and integrated in the same order I(1). The results show that the error correction is significantly negative. That is, the annual rate of adjustment required to achieve long-run equilibrium is 28.31 percent. Based on the findings in the short-run, the extended money supply and interest rates have negative and insignificant effects on GDP, while the exchange rate has an inversely significant effect on GDP. Inflation targeting has a favourable insignificant effect on GDP. Long-run results show that extended money supply, exchange rates, and interest rates have positive significant effects on economic growth, whereas inflation targetinghas negative significant effects on GDP. It is recommended that the government, policymakers, and financial institutions focus on managing inflation by the prudent implementation of fiscal and monetary policies and maintaining a regulation of interest rates, the extended money supply, and real exchange rates also inflation targeting should be emphasised by improving the central bank's communication, transparency, and accountability to avoid inflation volatility and stimulate economic growth.
Abstract: The research examines the effect of inflation on economic growth in Tanzania. The study employs the secondary time series data from 1970 to 2020 taken from the Bank of Tanzania, and the VECM is used to find the cointegration between variables to show the short-run and long-run dynamics. Graphical analysis and Augmented Dickey-Fuller tests are condu...
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