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Article
Publication date: 1 February 2011

Tsai‐Yu Chang

The purpose of this paper is to focus on labor movement in the agricultural sector of Taiwan to clarify the relationship between agricultural policy and the agricultural

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Abstract

Purpose

The purpose of this paper is to focus on labor movement in the agricultural sector of Taiwan to clarify the relationship between agricultural policy and the agricultural adjustment problem by estimating the labor movement function.

Design/methodology/approach

The relationship between agricultural policy and the adjustment process of agricultural labor in Taiwan was analyzed by modeling labor movement between the agricultural sector and other sectors. Through empirical analysis of labor migration function, it is clear that the following policy factors, affect the incentive for labor migration, and obstruct off‐farm labor migration: the price support policy; the incomplete farmland conversion regulations, which increase farmers' farmland possession motive; and government agricultural expenditure, which includes direct transfers to the agricultural sector.

Findings

The study confirms that after the late 1980s the factors that obstruct agricultural adjustment much more than the price support policy are the incomplete farmland conversion regulations and increasing government agricultural payments, from the result of the simulation with the influence of the policy eliminated.

Research limitations/implications

The implication of this paper is that even though Taiwan has been participating in World Trade Organization from 2002 and consented to cut the tariff on agricultural products and reduce agriculture support policies not linked to production, a delay in labor adjustment between the agricultural sector and other sectors may not necessarily be eliminated if there are other policy factors that affect the incentive for off‐farm migration by farmers.

Originality/value

Many studies use the labor migration function for empirical analysis, but most of them estimated the function by a simple single regression which shows that the labor movement from the agricultural sector to the other sectors increases as a result of an expanding wage gap. However, off‐farm labor movement reduces the wage gap between sectors adversely. Therefore, a reverse causal relation exists between labor movement and the wage gap between sectors. The endogeneity problem was considered as analyzing the measurement of the labor migration function.

Details

China Agricultural Economic Review, vol. 3 no. 1
Type: Research Article
ISSN: 1756-137X

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Article
Publication date: 8 March 2018

Frank Gyimah Sackey

The purpose of this paper is to examine if credit rationing persists even in the era of financial liberalization, the extent to which individual, firm and loan…

Abstract

Purpose

The purpose of this paper is to examine if credit rationing persists even in the era of financial liberalization, the extent to which individual, firm and loan characteristics influence the rationing behavior of commercial banks and whether the agricultural sector is discriminated against in the commercial bank credit market.

Design/methodology/approach

The study employed a probit model with marginal effects and a generalized Blinder-Oaxaca decomposition estimation on a randomly selected data of 1,239 entrepreneurs from eight commercial banks’ credit records about their individual, firm and loan characteristics.

Findings

The study revealed that credit rationing persists and that applying for a relatively longer payment period, providing collateral and guarantor, being illiterate, being relatively older and being in the agricultural sector increases the likelihood of being credit rationed, while having some relationship with the bank, having non-mandatory savings and applying from a bank with relatively high interest rates reduce the likelihood of being credit rationed. The study also revealed a credit gap of 17.77 percent and a positive discrimination against borrowers in the agricultural sector as the gap was largely being influenced by unexplained factors.

Research limitations/implications

The research was intended to cover a large number of commercial banks in Ghana. However, most of the banks were unwilling to provide such information about their borrowers; hence, the research was limited to only eight commercial banks who provided the author with the information needed for the study.

Practical implications

The study concludes that policies that enhance human capital, women, and older access to credit and agricultural-oriented financial services and others, will go a long way to reduce rationing and increase access to credit, especially to the agricultural sector.

Social implications

The research proposes the use of group lending as a form of collateral and monitoring to ease risks and default, and hence supports sustainable funding to increase access and outreach.

Originality/value

The paper looks at the comprehensive way about the various factors determining credit rationing in that it considers not only the individual, economic/firm and loan characteristics but also the extent to which discrimination toward the agricultural sector exists in the commercial banks credit market.

Details

Agricultural Finance Review, vol. 78 no. 3
Type: Research Article
ISSN: 0002-1466

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Article
Publication date: 26 June 2021

Purbayu BudI S., Wiludjeng Roessali, Tri Wahyu R., Darwanto Darwanto and Mulyo Hendarto

This study aims to analyze the productivity improvement strategies of the agricultural sector based on the problems faced by the agricultural sector in Central Java, Indonesia.

Abstract

Purpose

This study aims to analyze the productivity improvement strategies of the agricultural sector based on the problems faced by the agricultural sector in Central Java, Indonesia.

Design/methodology/approach

The analysis is done through interviews, literature studies and analytical hierarchy process data processing aids.

Findings

The results show that the strategy for developing the agricultural sector in Central Java needs to be focused on institutional factors to organize the field agricultural sector institutions. The ideal institution for the development of the agricultural sector in Central Java is cooperatives that can be accompanied by the Islamic Microfinance Institutions (LKMS).

Originality/value

This paper will contribute new knowledge specifically about the productivity improvement strategy through the cooperative institution.

Details

International Journal of Ethics and Systems, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2514-9369

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Book part
Publication date: 4 November 2021

Stathis Klonaris

Since Greece became a member of the EU and after the implementation of plethora of structural funds programs regarding the agricultural sector, the situation has remained…

Abstract

Since Greece became a member of the EU and after the implementation of plethora of structural funds programs regarding the agricultural sector, the situation has remained more or less the same as far as the structural characteristics of the agricultural sector is concerned.

The agricultural sector in Greece accounts for €6.67 billion and contributes 4.3% to the total GVA which is double compared with the average European one (1.6%). The Agricultural Factor income per annual work unit (AWU) has reached 94% of the EU average. During the economic crisis (2009–2013) the value of this index decreased 22% while in the next years an upward trend followed and in 2019 reached the same level as before the economic crisis. During the period 2005–2018, productivity in Greece showed moderate and negative TFP growth numbers while in the same period, the TFP growth was stronger in the EU presenting an increase of 10%. The trade balance of agri-food products in Greece is negative, although recently this trade deficit has been reduced following an improvement in the agri-food sector's export performance. The value of agri-food products exports amount to €6.04 billion, which are the third largest category of exported goods. Also, the value of exports of manufactured products rose 70% during the period 2009–2019 against the exports of commodities, which also rose with a lower rate (25%), something that it is positive for the Greek economy, given the higher added value of manufactured products. Under the current Common Agricultural Policy Action Plan (2014–2020), Greece has a guaranteed flow of around €20 billion for direct support of agricultural income through direct payments (Pillar I) and has earmarked €15 billion and the remaining €5 billion under the Rural Development Program, (Pillar II). However, the direct payments are not allocated fairly.

The COVID-19 pandemic crisis hit the entire Greek economy and the agri-food sector which has just recovered from the recent economic crisis. However, during this crisis, the Greek agro-food chain has demonstrated great resilience to guarantee the supply of food to consumers. In the era of COVID-19, the key factors that can be employed by agri-food industry as a strategy for penetrating in global markets, are (1) Focus on developed markets, (2) Marketing in branded form (not bulk), and ideally emphasis on the uniqueness of the raw material, and (3) Sufficient volume of products to gain a leading share in the premium segment of the market. In addition, knowledge and innovation have a key role to play in helping farmers and rural communities meet future challenges. Finally, the only way in order to achieve economies of scale in the agri-food sector is to increase the level of cooperation at all levels by any available means.

Details

Modeling Economic Growth in Contemporary Greece
Type: Book
ISBN: 978-1-80071-123-5

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Article
Publication date: 10 December 2019

Isiaka Akande Raifu and Alarudeen Aminu

The centrality of agricultural sector to the economy, particularly in developing countries, has drawn the attention of researchers to critically examine different factors…

Abstract

Purpose

The centrality of agricultural sector to the economy, particularly in developing countries, has drawn the attention of researchers to critically examine different factors determining the performance of the sector. Given that massive investment is required to ensure maximum productivity in the sector, one of the factors identified is the issue of financing. However, financing agricultural sector in a poor institutional environment can be depressing. In the light of this, the purpose of this paper is to examine the nexus between financial development and agricultural performance in Nigeria with a view to investigating the role of institutions.

Design/methodology/approach

The study employed annual data spanning the period from 1981 to 2016. Three indicators of financial development and five institutional variables were used. Besides, for robust analysis, the study also computed an aggregate measure of financial development and institutions using principal component method. Autoregressive distributed lag method of estimation was used to examine the short-run and long-run effects of financial development on agricultural performance in Nigeria.

Findings

The findings showed that financial development has a positive impact on agricultural performance in Nigeria. However, this positive impact is being undermined by institutional variables.

Originality/value

To the best of the authors’ knowledge, this is the only study that examines the mediating role of institutional factors such as the rule of law, control of corruption, etc., in the financial development–agricultural performance nexus in Nigeria.

Details

Agricultural Finance Review, vol. 80 no. 2
Type: Research Article
ISSN: 0002-1466

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Article
Publication date: 2 February 2010

Houssem Eddine Chebbi

The purpose of this paper is to assess the role of agriculture in economic growth and its interactions with other sectors of the Tunisian economy.

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12971

Abstract

Purpose

The purpose of this paper is to assess the role of agriculture in economic growth and its interactions with other sectors of the Tunisian economy.

Design/methodology/approach

Johansen's multivariate approach is used to study the cointegration of the different sectors of the Tunisian economy and overcome the problem of spurious regression. Special attention is paid to investigate non‐causality between agriculture and other economic sectors.

Findings

Empirical results suggest that all Tunisian economic sectors cointegrate and tend to move together. In addition, weak exogeneity for the agricultural sector is rejected and this underlines the fact that the agricultural sector should be considered by policymakers in the analysis of intersector growth. However, in the short run, agriculture in Tunisia seems to have a partial role as a driving force in the growth of other non‐agricultural sectors and agricultural growth may be conducive only to the agro‐food industry sub‐sector. In addition, while Tunisia started improving quality of services and restructuring the banking sector to make it “internationally” viable, this paper's statistical results indicate that the agricultural sector does not fully benefit from the development of the commerce and services sector and the presence of credit market constraints continue to hamper growth of agricultural output in Tunisia.

Originality/value

Although high importance is placed on the agricultural sector, in the context of the Tunisian economy, the issue of agricultural contribution to the economic growth has often been raised by policymakers but rarely examined empirically.

Details

China Agricultural Economic Review, vol. 2 no. 1
Type: Research Article
ISSN: 1756-137X

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Article
Publication date: 22 September 2021

Seyed Reza Zeytoonnejad Mousavian, Seyyed Mehdi Mirdamadi, Seyed Jamal Farajallah Hosseini and Maryam Omidi NajafAbadi

Foreign Direct Investment (FDI) is an important means of boosting the agricultural sectors of developing economies. The first necessary step to formulate effective public…

Abstract

Purpose

Foreign Direct Investment (FDI) is an important means of boosting the agricultural sectors of developing economies. The first necessary step to formulate effective public policies to encourage agricultural FDI inflow to a host country is to develop a comprehensive understanding of the main determinants of FDI inflow to the agricultural sector, which is the main objective of the present study.

Design/methodology/approach

In view of this, we take a comprehensive approach to exploring the macroeconomic and institutional determinants of FDI inflow to the agricultural sector by examining a large panel data set on agricultural FDI inflows of 37 countries, investigating both groups of developed and developing countries, incorporating a large list of potentially relevant macroeconomic and institutional variables, and applying panel-data econometric models and estimation structures, including pooled, fixed-effects and random-effects regression models.

Findings

The general pattern of our findings implies that the degree of openness of an economy has a negative effect on FDI inflows to agricultural sectors, suggesting that the higher the degree of openness in an economy, the lower the level of agricultural protection against foreign trade and imports, and thus the less incentive for FDI to inflow to the agricultural sector of the economy. Additionally, our results show that economic growth (as an indicator of the rate of market-size growth in the host economy) and per-capita real GDP (as an indicator of the standard of living in the host country) are both positively related to FDI inflows to agricultural sectors. Our other results suggest that agricultural FDI tends to flow more to developing countries in general and more to those with higher standards of living and income levels in particular.

Originality/value

FDI inflow has not received much attention with respect to the identification of its main determinants in the context of agricultural sectors. Additionally, there are very few panel-data studies on the determinants of FDI, and even more surprisingly, there are no such studies on the main determinants of FDI inflow to the agricultural sector. We have taken a comprehensive approach by studying FDI inflow variations across countries as well as over time.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

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Article
Publication date: 16 March 2020

Michael Oluwaseun Olomu, Moses Clinton Ekperiware and Taiwo Akinlo

This paper systematically reviewed the contributions of the recent Nigerian government agricultural policies and the impacts on the agricultural value chain system in line…

Abstract

Purpose

This paper systematically reviewed the contributions of the recent Nigerian government agricultural policies and the impacts on the agricultural value chain system in line with the structural transformation of the sector and the Nigeria's vision 20:2020. The study also suggest strategies to upgrading various segments of the agricultural value chain and argue that Nigeria's agricultural sector requires huge investments and innovative ideas to increase production and create value addition across the most profitable areas of the value chain.

Design/methodology/approach

The authors systematically present evidences and data from the Central Bank of Nigeria (the apex monetary authority of Nigeria) and Nigerian Bureau of Statistics (oversees and publishes statistics for Nigeria) to estimate the impact of Government agricultural policies on the value chains system.

Findings

The study discovers that the various recent government policy interventions to tackle the austere challenges in the agricultural sector are yet to yield much significant solution. Given to the dwindling performance of the sector, the Nigerian agricultural value chain is somewhat affected with systemic and services gaps which underpin the market failures (missing markets and weak markets), although the agricultural value chain has the potential of triggering economic growth in a higher scale with a trickle-down effect to other sectors of the Nigerian economy.

Practical implications

Overall, the findings indicate strategies to upgrading the production and processing segments of the agricultural value chain and argues that Nigeria's agricultural sector requires huge investments and innovative ideas to increase production and create value addition across the most profitable areas of the value chain.

Social implications

The study proves that enhancing value addition in the agricultural sector is imperative to achieving triple-benefits of increasing productivity by building resilient systems that leverage on finance opportunities, deepening economic inclusive growth and achieving great milestones.

Originality/value

This study is the first attempt to focus on agricultural value chain system in line with the structural transformation and the Nigeria's vision 20:2020.

Details

African Journal of Economic and Management Studies, vol. 11 no. 3
Type: Research Article
ISSN: 2040-0705

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Article
Publication date: 30 March 2020

Viet Van Hoang

This study aims to (1) identify the agricultural competitiveness of ASEAN countries in the global markets; (2) analyze the dynamics of these indicators for the period…

Abstract

Purpose

This study aims to (1) identify the agricultural competitiveness of ASEAN countries in the global markets; (2) analyze the dynamics of these indicators for the period 1997–2015; and (3) test the consistency between trade indices.

Design/methodology/approach

The study uses RCA, RTA, and NRCA for the first objective; OLS method and Markov matrix for the second objective; and statistic tool for the final purpose.

Findings

The results show that: (1) ASEAN countries achieve the strongest competitiveness in rice, rubber, spices, vegetable fat and oils, wood, fuel wood, fish, and crustacean. Vietnam, Thailand, and Indonesia are the strongest competitive whilst Brunei, Singapore, and Cambodia are the weakest competitive; (2) They have convergent patterns in agricultural competitiveness; (3) They successfully maintain rankings of the strong competitive sectors; and (4) ASEAN countries obtain benefits from the regional integration and the specialization in competitive products.

Research limitations/implications

ASEAN countries with strong competitiveness should specialize in and maintain their rankings to enhance competitiveness and maximize social welfare while the countries with weak agricultural competitiveness should specialize in the processed products and services based on their advantages of economic resources.

Originality/value

Comprehensive results of the static and dynamic agricultural competitiveness of ASEAN countries as a whole are provided. The findings and policy recommendations can be used by policymakers and enterprises to improve competitiveness and benefit. The discussions and findings should be a significant reference for economists.

Details

Journal of Economic Studies, vol. 47 no. 2
Type: Research Article
ISSN: 0144-3585

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Article
Publication date: 6 August 2020

Todd Kuethe and Todd Hubbs

This study examines the relationship between economic fluctuations and financial distress in the US agricultural sector, which is associated with a large degree of…

Abstract

Purpose

This study examines the relationship between economic fluctuations and financial distress in the US agricultural sector, which is associated with a large degree of financial instability.

Design/methodology/approach

The authors developed a parsimonious model of economic fluctuations in the US agricultural sector. The authors used statistical filter methods to identify the co-movement in cyclical fluctuations in real, cumulative growth rates in farm real estate values, farm sector debt and leverage.

Findings

The proposed model closely approximated the financial evolution of the US agricultural sector between 1960 and 2018. In addition, the authors proved that the proposed model is an early warning indicator of farm loan delinquencies and farm bankruptcies.

Originality/value

This study exploits recent advances in economic theory and empirical macroeconomic modeling to develop a model that is a robust predictor of financial distress in the agricultural sector. Further, the authors demonstrate that the policy interventions following the 1980s farm financial crisis demonstrate the likely long-run economic response to the policies enacted following the 2008 financial crisis.

Details

Agricultural Finance Review, vol. 81 no. 1
Type: Research Article
ISSN: 0002-1466

Keywords

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