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Assessment of Public Agricultural Research Investment Trends and Policy Perspectives in Ethiopia

Received: 15 November 2023     Accepted: 31 January 2024     Published: 31 January 2024
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Abstract

The study examines financial investment trends in public agricultural research in Ethiopia. The budget data from Ethiopian institute of agricultural research (EIAR) and seven regional agricultural research institutes (RARI’s) which is supplemented by national agricultural GDP and inflation data were used for this study. Data were analyzed using descriptive statistics. The study revealed that, agricultural research in Ethiopia is still predominantly funded by the government (77 percent) and total public agricultural research expenditure had increased by 57 percent from birr 0.8 billion in 2015 to birr 1.8 billion in 2020. The total expenditure by EIAR constitutes about 46 and 52 percent of the total agricultural research expenditure in Ethiopia in 2015 and 2020, respectively. Agricultural research intensity ratio dropped below 0.3 percent which is below the investment target of 1 percent or more of agriculture GDP into agricultural research. This intensity gap is related to accelerated growth of AgGDP in Ethiopia, rather than to a slowdown in research investment. To have met this lower target in 2019, Ethiopia would need to have invested birr 6.5 billion or an additional birr 4.93 billion (current prices). Volatility analysis conducted on the agricultural research spending over the period 2015-2020 revealed some degree of volatility in research spending from one year to the other with a volatility coefficient of 0.08 which signifies low volatility. The drastic decline in investment and delay in disbursement were the major challenges confronting the EIAR. Increasing government investment in agricultural and changing the budget calendar, are recommended to address this investment challenge.

Published in Research & Development (Volume 5, Issue 1)
DOI 10.11648/rd.20240501.12
Page(s) 5-9
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Public Investment, Agricultural Research, Research Spending, Trend, Policy, Ethiopia

References
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[2] Benin, S., L. McBride, and T. Mogues. (2016). “Why Do African Countries Underinvest in Agricultural R&D?” Chapter 5 in Agricultural Research in Africa: Investing in Future Harvests, edited by J. Lynam, N. Beintema, J. Roseboom, and O. Badiane. Washington, DC: International Food Policy Research Institute.
[3] CAADP. (2009). A Review of the Comprehensive Africa Agricultural Development Programme (CAADP): a focus on achievements. Presentation by Prof. Richard Mkandawire. www.nepad.caadp.net.
[4] Fan, S. (2000). “Research investment and the economic returns to Chinese agricultural research”, Journal of Production Analysis 14 (2): 163–82.
[5] Fan, S., and N. Rao. (2003). “Public spending in developing countries: Trends, determination, and impact”, EPTD Discussion Paper no. 99, International Food Policy Research Institute, Washington, D. C.
[6] Fuglie, Keith O., and Paul W. Heisey (2007). Economic Returns to Public Agricultural Research. EB-10, U.S. Dept. of Agriculture, Economic Research Service.
[7] Hazell, P. and L. Haddad, (2001). “Agricultural research and poverty reduction”, IFPRI 2020 Discussion Paper, International Food Policy Research Institute, Washington, D. C.
[8] Huffman, W. E. (2016). "New Insights on the Impacts of Public Agricultural Research and Extension." Choices. Quarter 2. Available online: http://www.choicesmagazine.org/.
[9] Nienke Beintema and Howard Elliott (2009). Setting Meaningful Investment Targets in Agricultural Research and Development: Challenges, Opportunities and Fiscal Realities. Expert Meeting on How to feed the World in 2050 Food and Agriculture Organization of the United Nations, Economic and Social Development Department.
[10] Stads, G. J. and Beintema, N. (2015). Agricultural R&D Expenditure in Africa: Analysis of Growth and Volatility. European Journal of Development Research, 27, 391-406. http://dx.doi.org/10.1057/ejdr.2015.25.
[11] United Nations Department of Economic and Social Affairs, Population Division (2022). World Population Prospects 2022: Summary of Results. UN DESA/POP/2022/TR/NO. 3.
[12] Danso-Abbeam, G., Ehiakpor, D. S. & Aidoo, R. (2018). Agricultural extension and its effects on farm productivity and income: insight from Northern Ghana. Agric & Food Secur 7, 74 (2018). https://doi.org/10.1186/s40066-018-0225-x.
[13] Chayot Gatdet (2022) The Ethiopian agricultural extension services: A mixed perspective, Cogent Food & Agriculture, 8: 1, DOI: 10.1080/23311932.2022.2132848.
[14] Annie S. Wesley and Merle Faminow (2014). Background Paper: Research and Development and Extension Services in Agriculture and Food Security. adb economics working paper series. No. 425.
[15] Julian M. Alston, William J. Martin, Philip G. Pardey (2015). Agricultural R&D Policy and Long-Run Food Security, Chapter 15 -Editor(s): Arsenio M. Balisacan, Ujjayant Chakravorty, Majah-Leah V. Ravago, Sustainable Economic Development, Academic Press, 2015, Pages 247-260.
[16] Paul Heisey and Keith Fuglie (2019). Agricultural Research in High-Income Countries Faces New Challenges as Public Funding Stalls. Economic Research Service. U.S. DEPARTMENT OF AGRICULTURE.
[17] J. Piesse and C. Thirtle (2010). Agricultural R&D, technology and productivity. Phil. Trans. R. Soc. B. Available at http://dx.doi.org/10.1098/rstb.2010.0140 or via http://rstb.royalsocietypublishing.org.
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    Hailu, D. (2024). Assessment of Public Agricultural Research Investment Trends and Policy Perspectives in Ethiopia. Research & Development, 5(1), 5-9. https://doi.org/10.11648/rd.20240501.12

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    Hailu, D. Assessment of Public Agricultural Research Investment Trends and Policy Perspectives in Ethiopia. Res. Dev. 2024, 5(1), 5-9. doi: 10.11648/rd.20240501.12

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    AMA Style

    Hailu D. Assessment of Public Agricultural Research Investment Trends and Policy Perspectives in Ethiopia. Res Dev. 2024;5(1):5-9. doi: 10.11648/rd.20240501.12

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  • @article{10.11648/rd.20240501.12,
      author = {Daniel Hailu},
      title = {Assessment of Public Agricultural Research Investment Trends and Policy Perspectives in Ethiopia},
      journal = {Research & Development},
      volume = {5},
      number = {1},
      pages = {5-9},
      doi = {10.11648/rd.20240501.12},
      url = {https://doi.org/10.11648/rd.20240501.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.rd.20240501.12},
      abstract = {The study examines financial investment trends in public agricultural research in Ethiopia. The budget data from Ethiopian institute of agricultural research (EIAR) and seven regional agricultural research institutes (RARI’s) which is supplemented by national agricultural GDP and inflation data were used for this study. Data were analyzed using descriptive statistics. The study revealed that, agricultural research in Ethiopia is still predominantly funded by the government (77 percent) and total public agricultural research expenditure had increased by 57 percent from birr 0.8 billion in 2015 to birr 1.8 billion in 2020. The total expenditure by EIAR constitutes about 46 and 52 percent of the total agricultural research expenditure in Ethiopia in 2015 and 2020, respectively. Agricultural research intensity ratio dropped below 0.3 percent which is below the investment target of 1 percent or more of agriculture GDP into agricultural research. This intensity gap is related to accelerated growth of AgGDP in Ethiopia, rather than to a slowdown in research investment. To have met this lower target in 2019, Ethiopia would need to have invested birr 6.5 billion or an additional birr 4.93 billion (current prices). Volatility analysis conducted on the agricultural research spending over the period 2015-2020 revealed some degree of volatility in research spending from one year to the other with a volatility coefficient of 0.08 which signifies low volatility. The drastic decline in investment and delay in disbursement were the major challenges confronting the EIAR. Increasing government investment in agricultural and changing the budget calendar, are recommended to address this investment challenge.
    },
     year = {2024}
    }
    

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  • TY  - JOUR
    T1  - Assessment of Public Agricultural Research Investment Trends and Policy Perspectives in Ethiopia
    AU  - Daniel Hailu
    Y1  - 2024/01/31
    PY  - 2024
    N1  - https://doi.org/10.11648/rd.20240501.12
    DO  - 10.11648/rd.20240501.12
    T2  - Research & Development
    JF  - Research & Development
    JO  - Research & Development
    SP  - 5
    EP  - 9
    PB  - Science Publishing Group
    SN  - 2994-7057
    UR  - https://doi.org/10.11648/rd.20240501.12
    AB  - The study examines financial investment trends in public agricultural research in Ethiopia. The budget data from Ethiopian institute of agricultural research (EIAR) and seven regional agricultural research institutes (RARI’s) which is supplemented by national agricultural GDP and inflation data were used for this study. Data were analyzed using descriptive statistics. The study revealed that, agricultural research in Ethiopia is still predominantly funded by the government (77 percent) and total public agricultural research expenditure had increased by 57 percent from birr 0.8 billion in 2015 to birr 1.8 billion in 2020. The total expenditure by EIAR constitutes about 46 and 52 percent of the total agricultural research expenditure in Ethiopia in 2015 and 2020, respectively. Agricultural research intensity ratio dropped below 0.3 percent which is below the investment target of 1 percent or more of agriculture GDP into agricultural research. This intensity gap is related to accelerated growth of AgGDP in Ethiopia, rather than to a slowdown in research investment. To have met this lower target in 2019, Ethiopia would need to have invested birr 6.5 billion or an additional birr 4.93 billion (current prices). Volatility analysis conducted on the agricultural research spending over the period 2015-2020 revealed some degree of volatility in research spending from one year to the other with a volatility coefficient of 0.08 which signifies low volatility. The drastic decline in investment and delay in disbursement were the major challenges confronting the EIAR. Increasing government investment in agricultural and changing the budget calendar, are recommended to address this investment challenge.
    
    VL  - 5
    IS  - 1
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Author Information
  • Department of Agricultural Economics, Ethiopian Institute of Agricultural Research (EIAR), Addis Ababa, Ethiopia

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