Understanding Food Security: Perspectives on National Self-Sufficiency

Abstract

The paper provides a nuanced examination of Ethiopia's economic growth trajectory, shedding light on the multifaceted factors driving its expansion since the pivotal year of 1991. By employing sophisticated regression-based growth accounting techniques, the study meticulously dissects the sources of output growth, offering crucial insights into the dynamics of the Ethiopian economy. One of the central findings of the research underscores the significant role of factor accumulation, particularly in the realm of physical capital, as a primary driver of Ethiopia's remarkable economic growth. This revelation not only underscores the importance of investment in tangible assets but also highlights the need for continued efforts to bolster infrastructure development and capital formation. However, amidst the prominence of factor accumulation, the study also unveils the substantial contribution of Total Factor Productivity Growth (TFPG) to Ethiopia's economic expansion. This nuanced understanding challenges conventional wisdom and underscores the importance of not only quantity but also quality in the utilization of factors of production. Building upon these empirical findings, the study offers valuable policy recommendations aimed at further bolstering Ethiopia's economic growth trajectory. Emphasizing the critical role of both public and private investment, the paper advocates for targeted policies to incentivize capital formation and enhance the quality of labor through education and skills development initiatives. Furthermore, the study underscores the significance of fostering an environment conducive to trade and investment, emphasizing the role of political stability and institutional reforms in attracting foreign investment and promoting domestic entrepreneurship. Additionally, it highlights the potential of the industrial sector as a key engine of growth, calling for targeted interventions to stimulate investment and innovation within this vital segment of the economy. This paper serves as a clarion call for policymakers to adopt a holistic approach to economic development, one that prioritizes both quantity and quality in factor accumulation while fostering an enabling environment for investment, innovation, and productivity enhancement. By heeding these recommendations, Ethiopia can chart a course towards sustained and inclusive economic growth, thereby unlocking its full potential and improving the welfare of its citizens.