New Journal Paper on impact of membership on rural income and poverty in Tigray

  • Friankincense forest during rainy season, tapping of frankincense in dry season and frankincese white resin at tapping, and dried frankincense from Northern Ethiopia
    Mesfin Tilahun

The paper "Impact of membership in frankincense cooperative firms on rural income and poverty in Tigray, Northern Ethiopia" written by Mesfin Tilahun, Miet Maertens, Jozef Deckers, Bart Muys and Erik Mathijs been published in Forest Policy and Economics.

New Journal Paper on impact of membership on rural income and poverty in Tigray

The paper is published as a New Journal Paper and can be downloaded here.

Abstract of the paper
Rural households in northern Ethiopia had no access to frankincense production and trading. However, following the recent devolution of forest use-rights, rural communities in norther Ethiopia are getting access through organizing frankincense cooperatives.

This study examines the effects of membership in the rural frankincense firms on income and poverty by applying instrumental variable, propensity score matching and Rosenbaum bounds methods on survey data from five rural villages in frankincense woodland areas of Northern Ethiopia.

Results indicate that both membership and amount of households' investment in shares in the frankincense cooperative firms have statistically significant positive welfare impacts. The average treatment effect on the treated from matching methods for the welfare indicator variables (log-transformed household per adult equivalent income, poverty head count, poverty gap, and poverty severity) are robust against hidden bias arising from unobserved confounding variables that simultaneously affect assignment into frankincense forest cooperative firm membership and each of the welfare indicator variables.

Published 12. October 2015 - 13:09 - Updated 23. May 2017 - 19:17