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Nonfarm Enterprises in Ethiopia : Are they Really Smoothing Consumption (English)

In developing countries highly dependent on agriculture, non-farm enterprises (NFEs) are often lauded as income diversification opportunities, helping to smooth income in the farming off-seasons. Using data from the first wave of the Ethiopia socioeconomic survey (ESS), this brief explores the role NFEs play in seasonal income generation, consumption smoothing, and risk mitigation. The authors find that NFEs are pro-cyclical with agriculture and do not appear to help households’ smooth consumption or mitigate spells of food insecurity.

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Nonfarm Enterprises in Ethiopia : Are they Really Smoothing Consumption (English). LSMS Integrated Surveys on Agriculture Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/935031587117727735/Nonfarm-Enterprises-in-Ethiopia-Are-they-Really-Smoothing-Consumption