The Impact of Kinship Networks on the Adoption of Risk-Mitigating Strategies in Ethiopia

S. Di Falco, E.H. Bulte

Research output: Contribution to journalArticleAcademicpeer-review

45 Citations (Scopus)

Abstract

The adoption of certain farm management practices, such as tree planting and soil and water conservation, can reduce exposure to weather shocks. However, in many countries the adoption of such risk mitigating measures is far from complete. We explore how risk-sharing networks in the form of kinship, characterized by the moral imperative of within-group sharing, affects the adoption of risk mitigating activities in rural Ethiopia. We find suggestive evidence that compulsory sharing invites free riding and attenuates incentives for self-protection against weather shocks. We also find evidence of the existence of a possible substitution effect between credit and social networks.
Original languageEnglish
Pages (from-to)100-110
JournalWorld Development
Volume43
Issue number3
DOIs
Publication statusPublished - 2013

Fingerprint

kinship
Ethiopia
weather
civil defense
tree planting
social network
soil conservation
substitution
evidence
management practice
incentive
credit
farm
conservation
water
management
Weather
Kinship
Group
Incentives

Keywords

  • sharing networks
  • tenure security
  • rural-areas
  • insurance
  • ghana
  • arrangements
  • reciprocity
  • incentives
  • commitment
  • solidarity

Cite this

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The Impact of Kinship Networks on the Adoption of Risk-Mitigating Strategies in Ethiopia. / Di Falco, S.; Bulte, E.H.

In: World Development, Vol. 43, No. 3, 2013, p. 100-110.

Research output: Contribution to journalArticleAcademicpeer-review

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AB - The adoption of certain farm management practices, such as tree planting and soil and water conservation, can reduce exposure to weather shocks. However, in many countries the adoption of such risk mitigating measures is far from complete. We explore how risk-sharing networks in the form of kinship, characterized by the moral imperative of within-group sharing, affects the adoption of risk mitigating activities in rural Ethiopia. We find suggestive evidence that compulsory sharing invites free riding and attenuates incentives for self-protection against weather shocks. We also find evidence of the existence of a possible substitution effect between credit and social networks.

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KW - tenure security

KW - rural-areas

KW - insurance

KW - ghana

KW - arrangements

KW - reciprocity

KW - incentives

KW - commitment

KW - solidarity

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