Agricultural Development Led Industrialization (ADLI) is the main
strategy of Ethiopian Government towards achieving accelerated growth
and poverty reduction. This study examines the role of agriculture in the
overall economic growth, demand creation and poverty reduction using a
2005/06 Ethiopian Social Accounting Matrix (SAM). A SAM based
Multiplier Analysis technique is used in deriving sectoral multipliers.
The main findings of this analysis reveal that exogenous injection such
as increase in government spending, increase in export demand and
increase in transfer from the Rest of the world will produce greater
demand, overall economic growth and poverty reduction when the
injection is taken place on agriculture.