Search results

1 – 10 of over 4000
To view the access options for this content please click here
Article
Publication date: 17 April 2020

Haruna Issahaku, Ishaque Mahama and Reginald Addy–Morton

The purpose of this study is to assess the impact of credit constraints on agricultural labour productivity as well as the impact of credit constraints and agricultural…

Abstract

Purpose

The purpose of this study is to assess the impact of credit constraints on agricultural labour productivity as well as the impact of credit constraints and agricultural labour productivity on rural households' consumption in Ghana.

Design/methodology/approach

This study uses the Ghana Living Standard Survey round six (GLSS 6) as the main source of data, which happens to be one of the most comprehensive household datasets in Ghana. Quantitative estimation techniques (namely: Endogenous Switching Regression and Two Stage Least Squares) are used to address possible endogeneity and selection into credit markets.

Findings

First, large households are prone to credit constraints while age (experience) and compliance with extension advice reduce credit constraints. Second, the determinants of agricultural labour productivity for both constrained and unconstrained households are age, sex, farm equipment, herbicide and farm size. Third, household size, education and livestock rearing influence agricultural labour productivity of constrained households. Fourth, credit constraints, irrespective of how they are measured, impede agricultural labour productivity while access to credit fosters labour productivity. Lastly, credit constraints robustly reduce consumption while agricultural labour productivity strongly enhances rural households' consumption.

Originality/value

The first contribution is that, unlike most previous studies, we do not focus on the widely used measure of productivity – output per unit land, but on agriculture labour productivity in particular. Secondly, unlike most previous studies which examine the effect of credit constraints either on productivity alone or consumption alone, our study examines the impact of credit constraints on both. Thirdly, unlike the existing literature which uses one or two measures of credit constraints, we use a wide range of measures of credit constraints – seven different measures of credit constraints. Lastly, our empirical strategy solves at least two critical econometric problems – sample selection bias and endogeneity.

Details

African Journal of Economic and Management Studies, vol. 11 no. 2
Type: Research Article
ISSN: 2040-0705

Keywords

To view the access options for this content please click here
Book part
Publication date: 12 January 2016

Ayuba Seidu and Gulcan Onel

We analyze the food security implications of off-farm labor reallocation decisions of rural farm households in transitional Albania. We accomplish this by examining local…

Abstract

Purpose

We analyze the food security implications of off-farm labor reallocation decisions of rural farm households in transitional Albania. We accomplish this by examining local and nonlocal off-farm incomes for at-home food consumption expenditures.

Methodology/approach

An instrumental variable approach is employed to correct for endogeneity and censorship biases of off-farm income variables in a two-stage estimation of the food consumption expenditures.

Findings

We find that local off-farm income exerts a positive and significant effect on per capita food consumption expenditures of farm households, while private remittances from nonlocal off-farm income has the opposite effect on food consumption expenditures. In terms of regional heterogeneity, we discover that the mountain region spends significantly less on annual per capita food consumption compared to the central region. This confirms anecdotal evidence that food and nutrition insecurity in rural Albania is predominant in the mountain region.

Social implications

Our findings suggest the need for policy makers to promote a development agenda that enables farm households to exploit the synergies among the various income-generating activities in the rural economy. This spectrum of income-generating activities forms complex livelihood strategies adopted by rural farm households to improve and maintain their food security.

Originality/value

We distinguish between local and nonlocal sources of off-farm income. Knowing which off-farm income source(s) has the largest impact on household welfare through improved food security status should be of interest to policy makers.

Details

Food Security in a Food Abundant World
Type: Book
ISBN: 978-1-78560-215-3

Keywords

Content available
Book part
Publication date: 4 May 2018

Martina, Nurasih Shamadiyah and Riyandhi Praza

Purpose – This study aims to analyze the contribution of revenue and consumption cost of soybean farmers.Design/Methodology/Approach – Data analysis was done by…

Abstract

Purpose – This study aims to analyze the contribution of revenue and consumption cost of soybean farmers.

Design/Methodology/Approach – Data analysis was done by quantitative descriptive analysis. Data were obtained in the form of numbers then the results of the obtained data were presented in the form of a systematic description. The sample in this study is the entire population of soybean farmers in Muara Batu, Aceh Utara by using census method as much as 50 farmers.

Findings – The results showed that the contribution of soybean farm revenue amounted to 6.94%, non-soybean farming amounted to 48.12%, and out farm activities amounted to 44.94%. This indicates that soybean farming activities are enough to contribute to increase the family revenue. Meanwhile, the average amount of household cost for food is 16,696,800 IDR/Year and for non-food is 8,397,500 IDR/Year. The analysis shows that although the contribution of soybean farming revenue is the lowest than the other farms’ revenue, it is very helpful to the farmers for fulfilling the needs of family consumption cost every year.

Research Limitations/Implications – The object of this research is to study all the farmers who utilize the land for soybean farming in Muara Batu. The research limitations are income contribution and consumption cost of soybean farmers.

Practical Implications – The amount of soybean production produced by farmers is much lower. However, the farmers can still increase their income if the amount of production can be increased by more intensification of soybean farming as tough as the use of superior varieties of soil processing, organic fertilizer on soil, balanced and integrated pest control, and harvesting and post-harvesting to reduce food loses.

Originality/Value – The farmers earned revenue not only from soybeans, but also from non-soybean farm and out farm. Soybean farming activities aim to increase revenues in order to meet the needs of the family that consist of food and non–food consumptions.

Details

Proceedings of MICoMS 2017
Type: Book
ISBN:

Keywords

To view the access options for this content please click here
Article
Publication date: 4 September 2018

Jianyun Hou, Xuexi Huo and Runsheng Yin

The purpose of this paper is to explore the impact of using computers to obtain information on the farm household’s production and consumption based on a field survey of…

Abstract

Purpose

The purpose of this paper is to explore the impact of using computers to obtain information on the farm household’s production and consumption based on a field survey of farm households in the northern China.

Design/methodology/approach

The most important methods applied are instrumental variable (IV) method and propensity score matching (PSM) method. Estimators of IV, PSM and nearest neighborhood matching approaches are considered together to check the robustness of empirical results.

Findings

This paper careful impact evaluation results suggest that the use of computer not only improves the size of arable land rented in but also reduces family labor input intensity and the probability of selling agricultural outputs at farm-gate markets. Moreover, it also stimulates transportation, garment, housing and insurance expenditures per capita.

Research limitations/implications

The database of this research comprises cross-section data, which does not support a cross-time comparison.

Practical implications

These results imply that it is vital to expand the coverage of computer use in rural areas. This may suggest that the importance of improving computer access is crucial for stimulating rural consumption increase. Furthermore, the need for the expansion of internet network coverage in western areas is also of importance.

Originality/value

First, the authors directly estimate computer usage impacts on a broader range of production and consumption indicators by including land-relative investments, variable investments, labor input and household’s expenditure and provide rigorous impact evaluations on the impact of access to computer. Second, the authors use IV and PSM methods to correct self-selection bias, going beyond the single equation approach in other studies. This enables us to identify the causal relationship between computer usage and farmer’s production and consumption decisions.

Details

China Agricultural Economic Review, vol. 11 no. 2
Type: Research Article
ISSN: 1756-137X

Keywords

To view the access options for this content please click here
Article
Publication date: 6 November 2009

Ashok K. Mishra and Hung‐Hao Chang

The purpose of this paper is to empirically investigate the effects of farm income variability, farm size, and other socio‐demographic characteristics on the precautionary…

Abstract

Purpose

The purpose of this paper is to empirically investigate the effects of farm income variability, farm size, and other socio‐demographic characteristics on the precautionary saving behavior of farm households and to estimate the influences of the identified factors on the amount of savings by self‐employed farm households.

Design/methodology/approach

Using 2003 Agricultural Resource Management Survey (ARMS) data and a Double‐Hurdle procedure, the likelihood and the amount of savings by farm households are estimated.

Findings

An important empirical finding of this study is that variability in income plays an important role in explaining precautionary savings of US farm households. Findings suggest that farm households facing higher income risk save more and accumulate more wealth. It is indicated that several farm, operator, household, and demographic attributes contribute to the precautionary savings of farm households. In particular, results show that educational attainment by operator and spouses have positive impact on the decision to save. In addition, results from this study show that farms that specialize in cash grain are likely to have precautionary savings.

Practical implications

Farm households today are virtually indistinguishable from non‐farm households in their levels of income and diversity of employment. As a result, government policies that influence general economic conditions have much more profound impacts on farm families. Federal support of farm income warrants continued scrutiny. This paper shows that greater income uncertainty increases savings and wealth of farm households. Therefore, farm policies that reduce income variability or uncertainty will have an impact on precautionary savings and wealth of farm households.

Originality/value

Several studies have investigated savings of households; however, these studies are limited to entire US population, older Americans, or non‐self‐employed individuals in the USA. Little is known about the savings behavior of self‐employed US farm households owing to a lack of household survey data and because of the complex relationship between the farm household and farm business in terms of resource allocation (both capital and labor).

Details

Agricultural Finance Review, vol. 69 no. 3
Type: Research Article
ISSN: 0002-1466

Keywords

To view the access options for this content please click here
Article
Publication date: 5 May 2000

Abdullahi O. Abdulkadri and Michael R. Langemeier

A farm household consumption model based on the life‐cycle permanent income hypothesis (LPIH) has been specified and the Euler equations derived in this analysis…

Abstract

A farm household consumption model based on the life‐cycle permanent income hypothesis (LPIH) has been specified and the Euler equations derived in this analysis. Estimation of the of the Euler equations using farm household consumption data provided estimates for the intertemporal elasticity of substitution and the coefficient of relative risk aversion. These parameters differ among the farm enterprises in which the households were engaged. Estimates for the intertemporal elasticity of substitution and the coefficient of relative risk aversion ranged from 0.158 to 0.351 and from 2.849 to 6.329, respectively. Results also provide further evidence that the LPIH is valid for modeling farm household consumption.

To view the access options for this content please click here
Article
Publication date: 3 June 2019

Yuying Liu, Alan Renwick and Xinhong Fu

The purpose of this paper is to examine the impact of off-farm income on food expenditure, using survey data of 493 rural households from Gansu, Henan and Shandong…

Abstract

Purpose

The purpose of this paper is to examine the impact of off-farm income on food expenditure, using survey data of 493 rural households from Gansu, Henan and Shandong provinces in China.

Design/methodology/approach

A two-stage least squares estimator is used to jointly estimate the determinants of off-farm income and the direct impact of off-farm income on food expenditure while controlling for the endogeneity issue associated with off-farm income variable.

Findings

The empirical results show that gender, education of household head, household size, farm size, the presence of children, smartphone use and asset ownership mainly determine off-farm income, and the off-farm income affects food expenditure of rural households significantly. In particular, the results show that a 1,000 yuan increase in per capita off-farm income increases per capita food expenditure by 61 yuan. Further estimations reveal that off-farm income has a larger effect on food expenditure of high-income rural households relative to their low-income counterparts.

Originality/value

Although poverty implications of off-farm income have been well documented, few studies have analysed the effects of off-farm income on food expenditure of rural households. To the best of the authors’ knowledge, there are no studies on this issue that focus on rural China. Therefore, the present study attempts to provide a first insight into the association between off-farm income and food expenditure of rural households in China, with the aim of providing useful evidence for policymakers in their efforts to reduce rural and urban food consumption gap and further increase social welfare.

Details

British Food Journal, vol. 121 no. 5
Type: Research Article
ISSN: 0007-070X

Keywords

To view the access options for this content please click here
Article
Publication date: 13 August 2020

Ayuba Seidu, Gulcan Onel and Charles B. Moss

A major policy issue facing leaders in the developing world is whether international migration, through remittances, contributes to the development process in…

Abstract

Purpose

A major policy issue facing leaders in the developing world is whether international migration, through remittances, contributes to the development process in migrant-sending communities or impedes the efficient allocation of labor and human capital at the origin countries. This study examines the impact of remittance inflows on out-farm migration of farm labor toward the nonfarm sector. Specifically, this study shows how international migrant remittances may alter the predictions of out-farm migration models by Harris–Todaro.

Design/methodology/approach

The authors use unbalanced panel time-series data on 77 developing countries between 1991 and 2010 within a dynamic panel time-series framework to estimate the impact of remittances on the out-farm migration rate.

Findings

The authors find two competing effects of remittances on out-farm migration of labor in developing countries. First, remittances decelerate the out-farm migration rates by supplementing farm income and consumption expenditures. Second, remittances provide a source of investment in nonfarm activities that increase the rate of migration out of agriculture over time. Combining these effects, on average, our elasticity estimates indicate that a 10% increase in remittances reduces the migration out of agriculture, on average, by 0.5% in developing countries over time.

Research limitations/implications

The authors findings align with the “developmentalist” or “optimistic” views of international migration. International migration, through remittances, help make the inevitable transition out of the farm sector smoother for developing countries.

Originality/value

To the authors’ knowledge, this is the first study to extend the empirical literature on macro-level determinants of out-farm migration within the Harris–Todaro framework to explicitly account for the impacts of remittances inflows into developing countries that the new economics of labor migration (NELM) theory hypothesizes.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2044-0839

Keywords

To view the access options for this content please click here

Abstract

Purpose

Cassava production surged noticeably in Southeastern Africa beginning in the 1990s. The purpose of this paper is to examine the commercial responses and food security consequences of cassava production growth in the region.

Design/methodology/approach

The paper incorporates a mix of quantitative analysis, based primarily on original analysis of national farm household survey data, together with key informant interviews with value chain participants in the three neighboring countries of Malawi, Mozambique and Zambia.

Findings

In the cassava production zones, cassava's high productivity translates into per kilogram carbohydrate costs 60 per cent to 70 per cent of the cost of cereals such as maize and wheat, thereby opening up a range of profitable opportunities for commercialization of cassava‐based foods, feeds and industrial products. Despite this potential, cassava commercialization in Southeastern Africa remains in its formative stages, with only 10 per cent to 30 per cent of production currently marketed. Unlike West Africa, where cassava commercialization has centered on marketing prepared cassava‐based convenience foods, the emerging cassava markets in Southeastern Africa have centered on fresh cassava, low value‐added cassava flour, and experiments in industrial processing of cassava‐based starches, biofuels and feeds. Strategic investment in a set of key public goods (breeding, training in food sciences and food safety, and research on in‐ground cassava storage) can help to shape this transition in ways that benefit both commercial interests and the food security of vulnerable households.

Originality/value

The paper compares cassava commercialization across differing agro‐climatic zones, policy environments and food staple zones.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 2 no. 1
Type: Research Article
ISSN: 2044-0839

Keywords

To view the access options for this content please click here
Article
Publication date: 7 January 2021

Pei Li, Ye Tian, JunJie Wu and Wenchao Xu

The purpose of this paper evaluates the effects of the Great Western Development (GWD) policy on agricultural intensification, land use, agricultural production and rural…

Abstract

Purpose

The purpose of this paper evaluates the effects of the Great Western Development (GWD) policy on agricultural intensification, land use, agricultural production and rural poverty in western China.

Design/methodology/approach

The authors collect county-level data on land use, input application, grain crop production, income, poverty and geophysical characteristics for 1996–2005 and use a quasi-natural experimental design of difference-in-differences (DD) in the empirical analysis.

Findings

Results suggest that the GWD policy significantly increased the grain crop production in western China. This increase resulted from higher yield, with increased fertilizer use and agricultural electricity consumption per hectare, and more land allocated to grow grain crops. The policy also increased land-use concentration, reduced crop diversity and alleviated rural poverty in western China.

Originality/value

This paper makes three contributions. First, the authors add to the growing literature on the GWD policy by evaluating its effects on farm household decisions and exploring the mechanisms and broad socioeconomic impacts in western China. Second, the authors take advantage of a quasi-natural experimental design to improve the identification strategy where input use, land allocation, production and off-farm labor participation are all endogenous in a farm household. Third, the authors explore a long list of variables within one integrated dataset to present a comprehensive picture of the impact of the GWD policy.

Details

China Agricultural Economic Review, vol. 13 no. 2
Type: Research Article
ISSN: 1756-137X

Keywords

1 – 10 of over 4000