Recent micro level data from East Africa is used to benchmark aggregate data and assess the role of agricultural inputs in explaining variation in crop yields on smallholding plots. Fertilizer, improved seeds, protection against erosion and pesticides improve crop yields in Rwanda and Ethiopia, but not Uganda, possibly associated with lack of use there. With all positive yield determinants in place, wheat and maize yields could increase fourfold.
The data hints at the negative effect of climate change on yields and the benefits of accompanying measures to mitigate its adverse impact (access to finance and protection against erosion). The adverse effect of crop damage on yields varies between 12/13 percent (Rwanda, Uganda) to 36 percent (Ethiopia). Protection against erosion and investment financing mitigate these effects considerably.
This paper analyzes how the leverage of financial institutions affects their demand for
assets and the resulting value of transactions between financial institutions. The results
show a positive relationship between buyer capital and the likelihood of buying assets,
and between buyer capital and the value of the deal. That is, those institutions that are
the least constrained in their ability to raise funding are those that demand assets and
pay more for them. This result does not hold, however, for deposit-taking institutions
that had access to several government programs designed to improve their liquidity
position during the crisis of 2008.