Publication: Agricultural Commercialisation & Asset Accumulation on Smallholder Farms in Ethiopia


The transition of farmers from subsistence to market-oriented agriculture is meant to reduce hunger, increase wellbeing and accelerate rural economic progress. While an impressive extant literature has analysed agricultural commercialisation effects on welfare from an income, expenditure and consumption perspective, authors place less attention on the implications on asset holdings, which is a more robust long-term measure of welfare. Using chickpea production in Ethiopia as a case, we assess the effects of chickpea commercialisation on household asset ownership and livestock holdings of smallholder farmers. We employ a household fixed-effects estimator to control for time-invariant unobserved heterogeneity and account for possible endogeneity using an instrumental variable approach. For comparison purposes, we also evaluate the income effects of chickpea and examine impact heterogeneity using quantile regressions. Our results indicate a positive impact of agricultural commercialisation on assets, livestock ownership and income. We found commercialisation to benefit all farmers in terms of impact heterogeneity, though with higher gains for asset-rich households. Despite this rising asset inequality, we conclude that increased agricultural commercialisation can contribute to economic development of households and reduce rural poverty.

Tabe-Ojong, MP, Hauser, M, Mausch, K 2022, ‘Does Agricultural Commercialisation Increase Asset and Livestock Accumulation on Smallholder Farms in Ethiopia?‘, The Journal of Development Studies, DOI.

More CRC News

Cover Image for a website post of a blog entry

Envisioning African Futures: Blog Post by Detlef Müller-Mahn and Eric Kioko

Against the backdrop of recent visits by President Frank-Walter Steinmeier, Chancellor Olaf Scholz and several German ministers to Africa, CRC-TRR Future Rural Africa researchers Detlef ...
Read More »
Dr. Richard Kiaka and his research assistants

Future Rural Africa Researchers Awarded Cologne International Forum Innovative Tandem Project Grant

The University of Cologne’s International Forum is awarding five project grants (€ 15,000 each) annually for project-related innovative tandem collaborations between University of Cologne-based academics ...
Read More »
Cover Image for a Lecture given by David Anderson at the University of Nairobi

Video Lecture: Kiotalel’s Kin – Identity, Autochthony and the Occult in Kenya’s Western Highlands

By Prof. David Anderson (CRC Project A02 Past Futures) In this presentation given at the University in Nairobi in late 2023, David Anderson focuses on ...
Read More »
Cover for a talk between David Anderson and Laleh Khalili

Video: Collective Punishment as Colonial Policing – A Conversation between David Anderson and Laleh Khalili

In this conversation, Prof. Laleh Khalili (Exeter; author of Time in the Shadows) and Prof. David Anderson (Future Rural Africa Project A02 Past Futures) discuss ...
Read More »
Kilombero Valley in Tanzania

Francis Ching’ota and Jonathan Jackson on Broadening Participation in Research Through Building Sustainable Relationships and Disseminating Knowledge

In their latest publication titled “Maono ya Bonde la Kilombero, Tanzania: Historia za Maendeleo Yake”, Francis Ching’ota, an Assistant Lecturer from the National Institute of ...
Read More »
Scroll to Top