The panel data set

The panel data set comes from a sub-sample of a bigger household survey that initially covered 100 villages7 _{in Tigray. Four of the five administrative zones - Southern, Eastern,} Central, and Northwestern- that cover most of the highlands of Tigray are included in this study8. This comprises eleven Woredas (districts) (see table 2.1 and Figure 2.1) where a DECSI branch is located to serve the villages in its premises. Sixteen villages are sampled from each zone. The survey was conducted in five rounds (1997, 2000, 2003, 2005, and 2006). Efforts were made to keep the seasonal comparability among rounds. To achieve better representation, sampling was done at two stages. First, stratified by altitude (mainly highlands), agricultural potential, population density, and access to infrastructure (mainly market, credit, and irrigation), four Tabias were selected from each zone. A tabia contains a group of villages. One village is selected from each sample Tabia.

Second, a total of 400 borrower and non-borrower households, 25 from each village were randomly selected from the village list. Table 2.1 presents a list of sample villages and their key characteristics by zone. A standardized household questionnaire that assesses household on-farm and off-farm income, consumption expenditure, housing and assets, credit and saving information and access to infrastructure was administered.

7_{The bigger survey was designed by a collaborative research project between Mekelle university, Ethiopia,} the International Food Policy Research Institute (IFPRI), the International Livestock Research Institute (ILRI), funded by Norwegian Research Council, Norway. Building on this, follow-up surveys were run by author of this thesis as well as other researchers from Mekelle university and Norwegian University of life sciences.

8_{During the survey design, the present Northwestern and Western zones comprised one zone, and were} represented by the four villages currently in Northwestern.

Table 2.1 Sample zones, villages and their key characteristics Zone Village (Tabia) (Woreda) Branch name (see Figure 2.1) Access to Woreda town/ market (yes if <10 km) Access to irrigation

Southern Hintalo Hintalo-Wajerat No Yes

May-alem Enderta Yes No

Mahbere-genet Enderta Yes Yes

Samre Samre Yes No

Eastern Kihen Wukro No No

Genfel Wukro Yes Yes

Embasmena Wukro Yes No

Hagere-selam Gulo-mekeda No No

Central Seret Degua-tembien No No

Dibdibo Werie_leke (Enticho) Yes No

May-keyahti Ahferom No No

Addis-alem Mereb-lekhe No No

North Western Hadegti Laelay-Adiabo Yes No

Tsaéda-ambora Laelay-Adiabo No No

May-adrasha Tahtay-koraro Yes Yes

Adi-menabir Tahtay-koraro No No

Geographically, this sampling covers most of the densely populated highlands (1500 meters above sea level) and hence credit provision is widely distributed (See Figure 2A) parts of the region. The western and southern lowlands that are less densely populated but are endowed with relatively better land resources and have unique climate are not included in this study. Note that the 2005 data is used only in chapter 3, because it lacked some information required in the rest of the chapters. In addition to the standardized questions, the 2006 survey included additional questions on the household relationship with DECSI and other sources of credit.

2.4.2 The cross-sectional data set

The cross-sectional survey was conducted in the summer of 2003 to study9, specifically, the process and outcomes of group formation in chapter four. Again, sampling was done at two levels. First, based on their proximity to town markets, roads, and agro-ecology, six out of the

96 sub-branches of DECSI were selected from five woredas. This distribution roughly

represents the sub-branches in the highlands with relatively immobile and more densely populated compared to the low lands. These are two important elements in group formation.

Source: Extracted from the International Livestock Research Institute (ILRI, 2007) GIS data (shape file) for Ethiopia

The sample woredas also represent the relatively active economic activity areas in the region. Second, a total of 201 households that make up 57 randomly selected groups were surveyed. The number of households surveyed by sub-branch, Woreda and zones are given in table 2.2. A specialized structured household questionnaire that included household characteristics, main sources of income, assets, credit and saving history, group formation (e.g., screening, monitoring and enforcement) and social ties was administered. Besides, respondents were asked if they participated in local networks (e.g., Equb, Iddier, and religious gatherings) before and after the credit group formation. Open ended questions were included to accommodate unanticipated and broader responses. Moreover, discussion with key (client) informants, branch and sub-branch officers of DECSI was part of the survey, which gave useful insights into the overall social processes related to credit group formation. Summary statistics of key household characteristics are presented in chapter four.

Table 2.2 Distribution of sample households by DECSI sub-branch Zone Woreda Sub-branch name (see Figure 2.1) Number of households

Mekelle Debub Mekelle Mekelle 21

Southern Hintalo Wajerat Adi-gudom 26

Hiwane 41

Samre Samre 34

Eastern Wukro Agulae (close to Wukro) 39 Central Degua Tembien Hagereselam 40

Appendix 2A

Source: Extracted from the International Livestock Research Institute (ILRI, 2007) GIS data (shape file) for Ethiopia