Welfare Effect and Elite Capture in Agricultural Cooperatives Intervention: Evidence from Ethiopian Villages

Arbeitspapier

This paper evaluates the impact of the Purchase 4 Progress (P4P) intervention implemented by World Food Program in Ethiopia on per capita income as well as across sub-social groups. The intervention is intended to improve the market power of smallholder farmers through cooperatives that has the potential to increase the relative farm gate price of agricultural produce, particularly staple crops. Using a semi-parametric difference-in-difference (DID) model, which relaxes the parallel trend assumption, we show that the P4P intervention has raised per capita consumption of smallholders. Estimates of the treatment effect from alternative specifications of our preferred models ranged between Ethiopian Birr (ETB) 188.3 and ETB 248.6 (15.10% and 19.93%). Moreover, our analysis suggests heterogeneous treatment effects related to elite capture within Farmer Organizations. Policy implications are discussed.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 12495

Classification and Topics

• Classification: Wirtschaft ; Organizational Behavior; Transaction Costs; Property Rights ; Commodity Markets ; Institutions: Design, Formation, Operations, and Impact
• Subject: P4P ; welfare effect ; distributional bias ; semi-parametric DID

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gelo, Dambala ; Muchapondwa, Edwin ; Shimeles, Abebe ; Dikgang, Johane
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2019

Further information

• Handle: http://hdl.handle.net/10419/207321
• Last update: 10.03.2025, 11:41 AM CET