Search results

The purpose of this paper is to analyze the impact of farmers’ agricultural production mode transformation, from the perspective of agricultural division of labor and cooperation, on their agricultural production efficiency including technical efficiency, pure technical efficiency and scale efficiency.

This paper analyzes the impact of the agricultural production mode’s transformation on farmers’ agricultural production efficiency, based on the classical theory of division of labor and specialization, transaction costs and cooperation. It uses 2013 survey data from 396 farms in 15 Chinese provinces to explore the contributing factors of agricultural production efficiency using a double selection model (DSM), which can correct the endogenous selection bias in farmers’ decisions.

Farmers that participate in agricultural division of labor and cooperation means transform their agricultural production from a traditional self-sufficient mode to one that is specialized and intensive. Agricultural division of labor measured by farmers’ participation in an agricultural division of labor in the production stages, or in agricultural products, and agricultural cooperation measured by farmers’ participation in farmers’ cooperatives significantly and positively influence their agricultural production efficiency after correcting farmers’ endogenous selection bias.

This paper proposes a unified framework to analyze the impact of farmers’ agricultural production mode transformation on their production efficiency. Further, it builds a DSM for an empirical analysis to avoid the endogenous biases in farmers’ self-selection behavior. This paper also provides ways for policy makers to improve farmers’ agricultural production efficiency from the modern agricultural production perspective.

We show that in sorting cross-sectional data, the endogeneity of a variable may be successfully detected by graphically examining the cumulative sum of the recursive residuals. Moreover, the sign of the bias implied by the endogeneity may be deducible through such graphs. In general, instrumental variables are needed to implement the graphical test. However, when a continuous or ordered (e.g. years of schooling) variable is suspected to be endogenous, a graphical test for misspecification due to endogeneity (e.g. self-selection) can be obtained without instrumental variables.

The purpose of this paper is to provide empirical evidence on the presence of gender-based discrimination in formal credit markets during the global financial crisis. Specifically, the study tests for gender differences in the probability of being credit-rationed, in the likelihood of being a discouraged borrower and in the price conditions of bank financing.

This paper uses the fifth wave of the Business Environment and Enterprise Performance Survey (BEEPS), which provides detailed micro data on firms from 26 transition economies in Europe and Central Asia. The empirical analysis employs linear and non-linear sample selection regression models and extended Blinder-Oaxaca decomposition techniques to assess gender differences in access to credit.

Controlling for a large set of observable firm characteristics and for endogenous selectivity, we find that female-led firms are more likely to face financing constraints and to be discouraged from applying for credit than their male counterparts. Conditional on having obtained a loan, female-led firms also face significantly higher interest rates. Furthermore, the observed gender gaps are mainly due to unexplained factors, supporting the hypothesis that banks discriminate against women-led firms in their credit-granting decision.

This study provides new insights on gender discrimination in formal credit markets, highlighting that gender differentials in access to credit significantly vary across countries and strongly depend upon the definition of the firm's gender structure. From a policy perspective, the evidence obtained stresses the need for policies aimed at promoting the role of women in the economic environment in order to reduce discrimination and raise competition in credit markets. Moreover, public interventions should support lending to creditworthy female enterprises in order to improve their perceptions about banks' willingness to grant credit and reduce their propensity to be discouraged from applying.

The objective of this study is to investigate the simultaneity between farm couples’ decisions on labor allocation and production efficiency. Using an unbalanced panel data set of Norwegian farm households (1989–2008), we estimate off-farm labor supply of married farm couples and farm efficiency in a three-equation system of jointly determined endogenous variables. We address the issue of latent heterogeneity between households. We solve the problem by two-stage OLS and GLS estimation where state dependence is accounted for in the reduced form equations. We compare the results against simpler model specifications where we suppress censoring of off-farm labor hours and endogeneity of regressors, respectively. In the reduced form specification, a considerably large number of parameters are statistically significant. Davidson–McKinnon test of exogeneity confirms that both operator and spouse's off-farm labor supply should be treated as endogenous in estimating farming efficiency. The parameter estimates seem robust across model specifications. Off-farm labor supply of farm operators and spouses is jointly determined. Off-farm work by farm operator and spouses positively affects farming efficiency. Farming efficiency increases with operator's age, farm size, agricultural subsidises, and share of current investment to total farm capital stock.

The purpose of this paper is to explore the factors that influence Chinese apple farmers’ willingness to adopt organic farming, paying a special attention to the role of information acquisition.

Given that the selection bias may occur when farmers themselves decide whether or not to acquire the information to understand the essence of organic farming, this study employs a recursive bivariate probit model to address the issue of the selection bias.

The empirical results indicate that farmers’ decision to acquire information is positively affected by farmers’ environmental awareness, access to credit and access to information. In particular, information acquisition appears to increase the likelihood of farmers’ willingness to adopt organic farming by 35.9 percentage points on average.

The findings suggest that measures increasing farmers’ information exposure can be promising policy interventions to induce adoption of organic farming.

While considerable evidence indicates that organic farming provides more benefits than conventional production practice, little is known about farmers’ willingness to adopt in China. This paper provides a first attempt by examining the role of information acquisition in determining Chinese apple farmers’ willingness to adopt.

We provide a comprehensive synthesis and extension of the real option (RO) literature on joint ventures (JVs), contributing in three main areas. First, we examine major alternative theoretical perspectives on JVs – learning, bargaining, transaction cost and agency theory – to elaborate how they complement or contradict RO predictions. Second, we compare arguments and variables used to explain different JV stages – initial RO explicitness and equity shares, JV stability, and performance consequences – and highlight research opportunities. Third, we discuss and extend research about behavioral aspects of making RO (JV) investments. Overall, we offer new predictions and suggestions for a better integration within the RO literature, and between RO and related literatures on JVs.

The purpose of this paper is to clarify the relationship between gang affiliation and criminal thinking.

A sample of 1,354 youth (1,170 males, 184 females) from the Pathways to Desistance Study served as participants in this study, and a causal mediation path analysis was performed on proactive and reactive criminal thinking, gang affiliation and subsequent offending.

Using three waves of data, it was determined that the pathway running from reactive criminal thinking to gang affiliation to proactive criminal thinking was significant, whereas the pathway running from proactive criminal thinking to gang affiliation to reactive criminal thinking was not. A four-wave model, in which violent and income offending were appended to the three-wave model, disclosed similar results.

Two separate targets for intervention with youth at risk for gang involvement: proactive and reactive criminal thinking. The impulsive, irresponsible, reckless and disinhibited nature of reactive criminal thinking may best be managed with a secondary prevention approach and cognitive-behavioral skills training; the planned, cold, calculating and amoral nature of proactive criminal thinking may best be managed with a tertiary prevention approach and moral retraining. Trauma therapy may be of assistance to youth who have been victimized over the course of their gang experience.

These findings reveal evidence of a gang selection effect that is independent of the well-documented peer selection effect, in which reactive criminal thinking led to gang affiliation in youthful offenders, particularly non-White offenders, and a gang influence effect, independent of the frequently observed peer selection effect, in which gang affiliation contributed to a rise in proactive criminal thinking.

The purpose of this paper is to introduce the special issue on “Disadvantaged workers in the labour market” and to draw some policy implications that are common to the studies included in the special issue.

The paper introduces several econometric methodologies adopted in the special issue. Such methodologies represent an excellent overview of the typical approaches developed by applied economists to address the issue under discussion. They include: dynamic probit models allowing for unobserved heterogeneity and endogenous initial conditions; propensity score matching; the non parametric Ñopo decomposition to take into account sample selection bias; endogenous switching models to estimate employment choice; and fixed effects models and Arellano and Bond dynamic panel estimator.

The articles in the special issue highlight several common factors that make the disadvantage at the labor market emerge. The first factor is the recent financial crisis which especially affects young people. Differences in common support – generally due to segregation in low pay jobs – are also important. Several factors favor persistence of the disadvantage, namely the inefficiency of the educational system and the lack of financial support to the weakest groups.

The paper adopts the EU definition of “disadvantaged workers”, namely workers who find it hard to enter the labor market without assistance. The authors show the relevance of the analysis produced in this special issue to design specific policies fine‐tuned to the needs of disadvantaged workers. In addition, institutional reforms, and/or interventions on structural variables are also in order.

The paper introduces a number of articles proposing innovations in the interpretation and application of a wide range of theoretical approaches and econometric methodologies.

After a long observation of the high rate of rice importation and low productivity in Côte d’Ivoire, the certified rice seed was introduced and encouraged to be used by the local farmers. This study evaluates the profitability of rice production and the impact of certified seed usage on the yield and income of farmers in Côte d’Ivoire.

Data were collected from 265 rice farmers. Descriptive statistics were used to identify the challenges faced in using certified seeds. Profitability analysis was used to examine the profitability of rice production. To eliminate bias due to the counterfactuals, the endogenous switching regression was employed to investigate the impact of the certified seeds on income and yield.

The difficulties faced by the rice farmers in the procurement of certified seeds were the unavailability of seeds, the high cost of seeds and poor credit access. Furthermore, rice farmers using certified seeds get a higher net income (USD 263.74/ha) than those using farmers' seeds (USD 212.31/ha). The average treatment on the treated was 1.61 for the yield and 574.75 for the income. The average treatment on the untreated was 1.20 for the yield and 422.59 for the income. These indicate a higher yield and income among adopters of certified rice seed.

Certified rice seed usage is profitable and enhances the output and income of rice farmers. The study advocates the creation of a stronger relationship between the farmers and the extension agents to encourage the use of certified seeds and increase the profit of the farmers.

There is scant information on the profitability of certified rice seed usage and how it affect yield and income. Therefore, this study serves as empirical evidence for policymakers to develop strategies that are required to enhance certified seed usage, boost rice productivity and achieve food security.

The authors examine the factors influencing membership in farmer organizations (FO) and their effects on the decision to adopt farm technologies by rice farmers in Ghana.

This study uses a farm survey of 900 households from Northern Ghana and a recursive bivariate probit (RBP) model that accounts for selection bias and endogeneity.

The results indicate that the household head’s decision to adopt machinery and row planting increases by 38.4 and 25.3%, respectively, upon joining a farmer organization. Membership in farmer organization is positively influenced by off-farm income, asset value, farmer organization location and farmer location in Upper West region but negatively by males, age and total livestock units owned. Machinery adoption is positively influenced by membership in farmer organizations and respondent being male but negatively influenced by the years of schooling, farm size, farm distance and location of a farmer in Ghana's Upper East and West regions. Similarly, row planting adoption is positively influenced by membership in farmers' organization but adversely by farm size, farm distance and a farmer's location in Upper East region of Ghana.

It can be concluded that membership in farmers' organizations significantly impacts farm household head’s decision to adopt machinery and row planting in rice production, which potentially enhance crop productivity.

These results show the importance of agricultural stakeholders in encouraging the formation and strengthening of farmer organizations to support the adoption of modern farming technologies.

Developing literature has demonstrated that farmer organizations promote the adoption of agricultural innovations. However, most of these studies have concentrated on conventional agricultural innovations and have used methods that fail to account for potential selection bias. This paper fills this important gap.