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on Agricultural Economics |
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Issue of 2006‒09‒23
seventeen papers chosen by |
| By: | Palaniswamy, Nethra; Birner, Regina |
| Abstract: | Acknowledging that the agricultural sector can play an important role as an engine of pro-poor growth in Sub-Saharan Africa, the purpose of this paper is to identify the factors that influence the “political will” of governments to support this sector. The concept of “political resources” from the political science literature is used to guide the analysis, as it combines the insights from state-centered and society-centered approaches to explain agricultural policies. Drawing on panel data covering 14 Sub-Saharan African countries over the period 1980-2001, we present empirical evidence showing that political factors play an important role in determining government’s commitment to supporting agricultural development. We use a measure of democracy that varies both across countries and within countries over time. Estimates are presented for separate samples of democracies and non-democracies, and for a pooled sample of all countries and years irrespective of the democratic status. Our results suggest that the rural poor do exercise electoral leverage in democracies; larger rural population shares are associated with higher spending on agriculture in democracies but not in authoritarian regimes. We also find evidence consistent with the theoretical prior that larger farmers tend to be better organized in interest groups. Specifically, we find that the share of traditional agricultural exports such as coffee and cocoa in the total value of exports, which may be an indicator for the ability of farmers’ to organize themselves as interest groups, induces greater spending on agriculture. This result holds true for both democracies and nondemocracies. |
| JEL: | H3 H5 O13 Q18 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:gdec06:4727&r=agr |
| By: | Witt, Rudolf; Waibel, Hermann; Pemsl, Diemuth E. |
| Abstract: | Recent research on the Farmer Field School (FFS) approach in agriculture in developing countries has raised some doubts on the economic impacts of this concept and especially the knowledge diffusion effects from trained to non-trained farmers. Based on a study in Senegal this paper hypothesizes that the question of the project placement strategy is vital when analyzing knowledge diffusion effects of FFS in Africa. Results show that the share of trained farmers in a community is a decisive factor for adoption behavior and knowledge diffusion. It is concluded that when introducing an FFS, a critical mass of trained farmers is important to attain effective dissemination of information and to generate positive stimuli for adoption and learning among non-participants. |
| Keywords: | Africa, Senegal, agricultural extension, Farmer Field School, diffusion |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:gdec06:4753&r=agr |
| By: | McCulloch, Neil; Weisbrod, Julian; Timmer, Peter |
| Abstract: | Since most poor live in rural areas, primarily engaged in low productivity farm activity, the pathway out of poverty must be strongly connected to productivity increases, whether they are realised in farming, rural non-farm enterprises or via urban migration. By utilizing the IFLS panel dataset for 1993 and 2000 from Indonesia, this paper shows, using empirical techniques, which pathways out of poverty were most successful in Indonesia’s past. Our findings suggest that the increased engagement of rural farmers in rural non-farm enterprises is a key way to alleviate rural poverty. |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:gdec06:4752&r=agr |
| By: | Mithöfer, Dagmar; Waibel, Hermann; Akinnifesi, Festus |
| Abstract: | Vulnerability to poverty is a major problem in the rural areas of Sub Saharan Africa. Rural Households are confronted with various covariate and idiosyncratic shocks and are often severely constrained in coping with such events. They frequently resort to food from natural resources such as indigenous fruits during times of crisis. The availability of such food sources is increasingly at risk due to deforestation and biodiversity loss. The objective of this paper is to quantify the contribution of indigenous fruit trees towards reducing vulnerability to food insecurity and poverty. The methodology used is a multi-period stochastic household income model. The data were collected in a case study in Zimbabwe using detailed monthly income and expenditure records of a sample of 39 rural households in two areas. The two regions differ in their agricultural system. In one area horticulture, off-farm activities and exotic fruits are a major source of income while in the other area indigenous fruits are a more important source of income. This paper concentrates on the latter area. Model calculations show that rural households in Zimbabwe are highly vulnerable to seasonal fluctuations in income and therefore a critical period where households run high risk of being food insecure can be identified. While indigenous fruits, as a low cost natural resource, can facilitate income smoothing, the role of other sources of income must not be neglected. The paper concludes that diversified season-specific income generating portfolios must be designed of which indigenous fruit trees have a role to play. |
| Keywords: | Vulnerability, poverty, food security, seasonal fluctuations, wild food resources, Zimbabwe |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:gdec06:4751&r=agr |
| By: | Morley, Samuel |
| Abstract: | "This paper is a description and an analysis of trade liberalization under CAFTA. It shows that in the short run the impact of the agreement is likely to be small... Since the U.S. already grants tariff-free access under the CBI, trade liberalization in the CAFTA treaty appears to be asymmetric, with most of the tariff reductions being granted by the Central American countries. That is misleading for two reasons. First there really were some significant tariff barriers in the United States for agricultural commodities under the CBI. Many of these are removed under CAFTA. Second, the current favorable special treatment of the five Central American countries under the CBTPA and the CBI will expire in 2008 if CAFTA is not implemented. CAFTA makes permanent the tariff concessions of the CBI and the liberalized rules of origin of the CBTPA... The fact that the tariff reductions and TRQs granted by the Central American countries under CAFTA will not cause significant price reductions does not mean that domestic producers will be unaffected by the agreement. In the long run the level of protection of many important commodities such as rice, pork and poultry will be significantly lower. But the tariff reductions in these sectors are gradual. That gives farmers time to adjust and to become more competitive. What will be critical from a policy perspective is that this time is used wisely to increase productivity, switch to more profitable crops and take advantage of the new opportunities opened up by CAFTA.." Authors' Abstract |
| Keywords: | trade liberalization, Agriculture, Smallholders, Tariff on farm produce, Prices, Crops Economic aspects, Central America Free Trade Agreement (CAFTA), Caribbean Basin Initiative (CBI), |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:dsgddp:33&r=agr |
| By: | Diao, Xinshen; Hazell, Peter; Resnick, Danielle; Thurlow, James |
| Abstract: | "This paper provides a nuanced perspective on debates about the potential for Africa's smallholder agriculture to stimulate growth and alleviate poverty in an increasingly integrated world. In particular, the paper synthesizes both the traditional theoretical literature on agriculture's role in the development process and discusses more recent literature that remains skeptical about agriculture's development potential for Africa. In order to examine in greater detail the relevance for Africa of both the “old” and “new” literatures on agriculture, the paper provides a typology of African countries based on their stage of development, agricultural conditions, natural resources, and geographic location... More broadly, the paper demonstrates that conventional theory on the role of agriculture in the early stage of development remains relevant to Africa. While the continent does face new and different challenges than those encountered by Asian and Latin American countries during their successful transformations, most African countries cannot significantly reduce poverty, increase per capita incomes, and transform into modern economies without focusing on agricultural development." from Authors' Abstract |
| Keywords: | Growth-poverty linkages, Smallholders, Poverty alleviation, Agricultural development Africa, Agriculture Economic aspects, Ethiopia, Ghana, Rwanda, Uganda, Zambia, |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:dsgddp:29&r=agr |
| By: | Ersado, Lire |
| Abstract: | In the presence of risk and uncertainty, measures such as poverty rates are inadequate to analyze the well-being of poor households. The poor are not only concerned about the current low levels of their income or consumption, but also the likelihood of experiencing stressful declines in these levels in the future. Risks to livelihood are particularly important in rural areas where there is generally high dependence on agriculture and the environment. In this study, the author analyzes the nature, extent, and causes of rural vulnerability in Serbia using panel national household data from the 2002 and 2003 Serbia Living Standard Surveys. He measures rural vulnerability as a function of nonstochastic determinants of poverty as well as exposure to risk. While low levels of consumption (poverty) explain about 70 percent of vulnerability, the author identifies risk and uncertainty as crucial dimensions of rural life in accounting for the remaining 30 percent of household vulnerability. Households and regions with a greater share of their livelihood depending on agricultural activities are more at risk of vulnerability than those with a significantly higher share of their income coming from nonagricultural sources. Dependence on agricultural income is directly associated with higher aggregate risk, underscoring the agricultural sector’s lopsided exposure to covariate shocks in general, and the negative impact of the 2003 drought in particular. Rural vulnerability to poverty and risk is also strongly associated with asset ownership and access to markets to mobilize them in time of need. |
| Keywords: | Rural Poverty Reduction,Population Policies,Pro-Poor Growth and Inequality,Services & Transfers to Poor |
| Date: | 2006–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4010&r=agr |
| By: | Levy, Stephanie |
| Abstract: | "This paper studies the relevance of agricultural policies for avoiding Dutch Disease, which affects many less developed countries experiencing a resource boom. Using a computable general equilibrium model calibrated for Chad, we study the impact of using this country's annual oil revenue for public investment, particularly in the development of road and irrigation infrastructure. Our model takes into account the integration of markets and migration processes. We find that improving water access would reduce Chad's dependence on food aid and entail a substantial improvement in rural household welfare." Author's Abstract |
| Keywords: | Agricultural policies, Computable general equilibrium (CGE), infrastructure, Public investment, Rural households, Market integration, trade, Road construction Economic aspects, |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:dsgddp:35&r=agr |
| By: | Ronchi, Loraine |
| Abstract: | This paper concerns an NGO intervention in agricultural commodity markets known as Fairtrade. Fairtrade pays producers a minimum unit price and provides capacity building support to member cooperative organizations. Fairtrade ' s organizational capacity support targets those factors believed to reduce the commodity producer ' s share of returns. Specifically, Fairtrade justifies its intervention in markets like coffee by claiming that market power and a lack of capacity in producer organizations ' marks down ' the prices producers receive. As the market share of Fairtrade coffee grows in importance, its intervention in commodity markets is of increasing interest. Using an original data set collected from fieldwork in Costa Rica, this paper assesses the role of Fairtrade in overcoming the market factors it claims limits producer returns. Features of the Costa Rican input market for coffee permit a generalization of the results. The empirical results find that market power is a limiting factor in the Costa Rican market and that Fairtrade does improve the efficiency of cooperatives, thereby increasing the returns to producers. These results do not depend on the minimum price policy of Fairtrade and therefore can inform on its organizational support activities. Finally, the results also suggest that producers selling to vertically integrated, multinational coffee mills face lower producer price ' mark-downs ' compared with domestically owned non-cooperative mills. This result contradicts the popular view that the increasing concentration of vertically integrated multinational firms accounts for a decline in producers ' share of coffee returns. |
| Keywords: | Markets and Market Access,Crops & Crop Management Systems,Access to Markets,Commodities,Economic Theory & Research |
| Date: | 2006–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4011&r=agr |
| By: | Birner, Regina; Davis, Kristin; Pender, John; Nkonya, Ephraim; Anandajayasekeram, Ponniah; Ekboir, Javier; Mbabu, Adiel; Spielman, David; Horna, Daniela; Benin, Samuel; Cohen, Marc J. |
| Abstract: | "The paper develops a framework for the design and analysis of pluralistic agricultural advisory services and reviews research methods from different disciplines that can be used when applying the framework. Agricultural advisory services are defined in the paper as the entire set of organizations that support and facilitate people engaged in agricultural production to solve problems and to obtain information, skills and technologies to improve their livelihoods and well-being... To classify pluralistic agricultural advisory services, the paper distinguishes between organizations from the public, the private and the third sector that can be involved in (a) providing and (b) financing of agricultural advisory services. The framework for analyzing pluralistic agricultural advisory services presented in the paper addresses the need for analytical approaches that help policy-makers to identify those reform options that best fit country-specific frame conditions. Thus, the paper supports a shift from a “one-size-fits-all” to a “best fit” approach in the reform of public services... Based on a review of the literature, the paper presents a variety of quantitative and qualitative methodological approaches derived from different disciplines that can be applied when using the framework in empirical research projects. The disciplines include agricultural and institutional economics, communication theory, adult education, and public administration and management. The paper intends to inform researchers as well as practitioners, policy-makers and development partners who are interested in supporting evidence-based reform of agricultural advisory services. from Authors' Abstract |
| Keywords: | Agricultural extension work, Pro-poor growth, Capacity strengthening, |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:dsgddp:37&r=agr |
| By: | Messer, Ellen; Cohen, Marc J. |
| Abstract: | "We explore how globalization, broadly conceived to include international humanrights norms, humanitarianism, and alternative trade, might influence peaceful and foodsecure outlooks and outcomes. The paper draws on our previous work on conflict as a cause and effect of hunger and also looks at agricultural exports as war commodities. We review studies on the relationships between (1) conflict and food insecurity, (2) conflict and globalization, and (3) globalization and food insecurity. Next, we analyze countrylevel, historical contexts where export crops, such as coffee and cotton, have been implicated in triggering and perpetuating conflict. These cases suggest that it is not export cropping per se, but production and trade structures and food and financial policy contexts that determine peaceful or belligerent outcomes. Export cropping appears to contribute to conflict when fluctuating prices destabilize household and national incomes and when revenues fund hostilities. Also, in these scenarios, governments have not taken steps to progressively realize the right to adequate food or to reduce hunger and poverty. We conclude by exploring implications for agricultural development, trade, and human rights policies." Authors' Abstract |
| Keywords: | Hunger, Conflict, war, Globalization, Crops, exports, coffee, Cotton, Human rights, Right to food, Fair trade, |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:fcnddp:206&r=agr |
| By: | Benson, Todd |
| Abstract: | "Poverty mapping applies models of household welfare developed from detailed household consumption and expenditure surveys to the extensive but less detailed data from national censuses. A poverty map for Malawi, developed by drawing upon information from the 1997–98 Malawi Integrated Household Survey with the 1998 Malawi Population and Housing Census, provides aggregate estimates of household welfare and poverty at a highly disaggregated level—down to the level of local government wards. Given the close association between welfare and food security in most Malawi households, such a detailed poverty map can be of considerable value to development and relief organizations, as they plan and target activities to improve the ability of poor households to cope with food scarcity. This paper assesses the value of the Malawi poverty map with reference to two activities of the World Food Programme (WFP) in Malawi: the Food for Assets and Development (FFASD) public works program and the Vulnerability Analysis and Mapping (VAM) food insecurity information generation system. First, the poverty targeting efficiency of the FFASD program is evaluated using the poverty map to determine whether the FFASD projects are preferentially located in areas where disproportionate numbers of the poor are found. This is done in part by comparing the poverty targeting efficiency of the WFP program to that of the Malawi Social Action Fund Public Works Programme projects. Second, WFP employs the VAM methodology to determine how and where to employ its resources from year to year. The potential value of the poverty map as a component of the VAM process in Malawi is then considered. The results indicate that the poverty map is an effective and objective way to geographically target projects and programs on a poverty basis in Malawi. In assessing household vulnerability to food insecurity, the poverty map serves as a useful proxy indicator of spatial variability in the ability of the population to cope with food scarcity. Poverty maps, in those countries were they are available, should be a privileged data source for undertaking any national vulnerability analyses. However, the poverty map needs to be used with complementary data to better understand the risks households face that might result in food scarcity and the actual mechanisms households use to cope with such stresses." Authors' Abstract |
| Keywords: | Poverty mapping, food security, Malawi, Food relief, Targeting, |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:fcnddp:205&r=agr |
| By: | Xing, Li; Fan, Shenggen; Luo, Xiaopeng; Zhang, Xiaobo |
| Abstract: | "Increased regional inequality has been a major concern in many emerging economies like China, India, Vietnam and Thailand. However, even a large inequality is observed within the lagging regions. The objective of this paper is to look into what are the sources of within region inequality using the community surveys and a census type of households in Western China. This snapshot view of inequality within and between rural villages in western China is based on a census-type household survey in three administrative villages and a sampling survey of 286 natural villages in the poor province of Guizhou in 2004. In contrast to coastal regions, nonfarm income is distributed unevenly in this inland western region. This accounts for the largest share of overall income inequality. But agriculture is still the rural people's major source of livelihood in this particular location. On the expenditure side, health care is one of the most important sources of inequality. Because rural income is strongly related to human capital, the uneven access to health care will translate into a larger income gap in the long run. The analysis based on the natural village survey indicates that income varies widely across villages. Access to infrastructure and markets, education, and political participation explain most of this variation. These findings have important implications on the future development strategy in promoting lagging regions development and poverty reduction. While the overall economic development will be the main instrument to bring the majority poor out of poverty, a targeted approach has become increasingly crucial in helping the poor villages and households. It is critical to understand why these villages and households can not participate in the growth process and how development programs and various transfer programs help them to overcome the constraints they face." Authors' Abstract |
| Keywords: | Rural development, Poverty reduction, Inequality, Public investment, China, Asia, Household surveys, Agriculture, Income Rural areas, |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:dsgddp:31&r=agr |
| By: | John Cawley |
| Abstract: | Several recent surveys have asked Americans whether they support policies to reduce childhood obesity. There is reason for skepticism of such surveys because people are not confronted with the tax costs of such policies when they are asked whether they support them. This paper uses contingent valuation (CV), a method frequently used to estimate people's willingness to pay (WTP) for goods or services not transacted in markets, applied to unique data from New York State, to estimate the willingness to pay to reduce childhood obesity. The willingness to pay data have considerable face validity; they correlate in predictable ways with observed characteristics of respondents. The mean WTP of New Yorkers for a 50% reduction in childhood obesity is $47.25, which implies a total WTP by New York residents of $692.3 million. This vastly exceeds the implied savings in external costs, suggesting that the public supports public health initiatives not only to reduce external costs, but also altruistically. Despite the large WTP relative to the savings in external costs, the WTP estimated using the CV techniques in this paper are somewhat lower than those implied by previous surveys that did not use CV methods. |
| JEL: | I1 I18 |
| Date: | 2006–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:12510&r=agr |
| By: | Russell Kashian (Department of Economics, University of Wisconsin - Whitewater) |
| Abstract: | This study uses the hedonic price model to estimate the effect a change in water level has on the value of real estate on Lake Koshkonong in Wisconsin. Hedonic techniques are employed to show that a 2 inch reduction in the lake’s water level had a significant effect on Lake Koshkonong’s shoreline property values. The body of existing research demonstrates that changes in both the subjective and objective indicators of value is important for estimating the implicit value of water quality in hedonic analyses. This paper provides new evidence on the economic harm created by the reduction of water levels and the concurrent publicity created by the action. |
| Date: | 2006–09 |
| URL: | http://d.repec.org/n?u=RePEc:uww:wpaper:06-02&r=agr |
| By: | Schindler, Kati |
| Abstract: | This paper analyzes the use of informal credit as a coping strategy against risk by market women in the city of Tamale, Ghana. Using qualitative research techniques, the analysis reveals that intra-household structure and allocation decisions determine these market-based coping strategies. Market women invest a considerable amount of working hours in maintaining complex credit networks as a safeguard against extreme risks. As a policy implication, this research suggests to provide market women with access to formal, reliable and long-term microfinance institutions, both to improve their ability to cope with risks and to reduce the risks they face. |
| Keywords: | micro-credit, informal markets, networks, coping strategies, intra-household allocation, women, Ghana |
| JEL: | D13 O12 O17 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:gdec06:4761&r=agr |
| By: | Simon Cowan |
| Abstract: | The paper develops a model of decentralized metering decisions when selective metering is socially optimal. Households choose between two-part tariffs. Decentralization achieves social efficiency when the regulator, who knows household characteristics, gives household-specific compensation (via a reduction in the lump-sum charge on choosing to have a meter), while allowing for the cost of metering. Relative to the status quo of no metering the full-information scheme provides a Pareto improvement. With asymmetric information the first-best allocation of meters can be achieved when only small consumers should have meters. When large consumers alone should be metered it is not possible to separate customers. An exogenous signal that is highly correlated with the unknown type can, however, help to alleviate this problem. The policy of requiring meters to be provided free is problematic because the first-best allocation does not enable all the water supplier`s costs to be recovered. |
| Keywords: | Water Metering, Optional, Two-part Tariffs, Asymmetric Information |
| JEL: | D82 L51 Q25 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:wpaper:273&r=agr |