Search results

The purpose of this paper is to evaluate the relative importance of different sources of finance for agricultural and non-agricultural investments using unique Smallholder Financial Diaries collected by Consultative Group to Assist the Poor (CGAP) in Mozambique, Pakistan and Tanzania at the individual and household level.

Following the analytical framework of variance decomposition developed in Samphantharak and Townsend (2010), this study develops a method to quantify how much each cash deficit associated to investments and expenses of interest co-move with different financing sources.

This paper finds that self-finance, rather than formal or informal finance from external providers, is the main financing source for long-term and short-term smallholder agricultural investments. Further, the paper finds that the main source of self-finance varies depending on the economic opportunities faced by smallholders, with non-agricultural income as the dominant financing source for some, while agricultural income dominating for others.

Given CGAP’s Smallholder Financial Diaries is not nationally representative, research results should be interpreted carefully. However, to the best of the authors’ knowledge, this is the first paper to analyze financing sources for smallholder households making use of high frequency financial data for individuals in developing countries.

These findings imply that financial inclusion policies specifically targeting smallholders and the agricultural sector would benefit from enabling the development of an ecosystem of diverse financial services that respond simultaneously to both agriculture and non-agriculture needs.

This is paper furthers the authors’ knowledge on how smallholder households are financing their agricultural investments. Moreover, it applies methods in new ways to exploit a unique data set.

The purpose of this paper is to examine the relationship between industrial sector growth, inequalities and urban poverty reduction

The paper used static panel data analysis. However, the tests suggest that there are no state-specific effects; hence, the pooled panel regression techniques are used for the analysis.

The findings of the paper suggest that the industrial sector growth exert no significance on urban poverty while the urban wholesale and retail services growth is found to be substantially strong in reducing urban poverty. The results also indicate that there is no statistically significant evidence to conclude that higher incidence of urban poverty was due to the high degree of inequalities.

This paper has provided some helpful results in understanding the heterogeneous effects of sectoral components of growth of urban poverty in the presence of high income inequalities, but the limitation of this study is that there is no disaggregated poverty and growth data on different occupational activity.

There is a need to expand investment in the production and export manufacturing labor-intensive sectors; this will help increase the labor absorption rate of the industry and, thus, reduce poverty in the urban areas.

The paper improves on previous research on poverty in Nigeria by explicitly recognizing the effects of location and inequality.

The purpose of this paper is to focus on investigating labour productivity in the agricultural sector of Sub-Sahara Africa (SSA) countries between the periods of 2010 and 2017.

The study adopted descriptive design. The sample size for this research includes 43 SSA nations. Measuring SSA nation’s agricultural productivity in this study was based on input and output factors relating to the labour resource utilisation between the periods of 2010 and 2017. Data envelopment analysis (DEA) and panel regression analysis were carried out to examine labour productivity within the set periods.

The findings from the study suggest that labour productivity in the agricultural sector of SSA countries can be improved from its presently low state of productivity. The statistical analysis showed that between the periods of 2010 and 2013, only about 34.9 per cent of countries in the region were technically efficient in the utilisation of labour resources for productive use. More disturbing was that, from 2014 to 2017, labour productivity drooped to 11.6 per cent. Meanwhile, employment of labour in the agricultural sector revealed as low as 1.58 percentage to crop production index in the region. Notably, there is the potential of labour employment to derive as high as 80 per cent yield to the gross domestic product of economies in the SSA region.

Considering the strategic role of labour to the agricultural sector of SSA countries, there must be a stakeholders approach to stimulating the interest of the populace of these countries and getting them actively involved in the agricultural sector. This imply that government, investors, support agencies from developed economies and populace of the SSA nations must support the drive towards agricultural productivity of the SSA nations.

This study established a research agenda that involved a paradigm shift from the more rampant literature on foreign investments, agricultural research, rural livelihood and well-being, among others to focusing on issues that pertain to labour productivity for sustainable agricultural yields in SSA countries. Also, the methodology adopted in the study, such as application of DEA and regression analysis to panel data, shows a departure from single units of analysis adopted by existing studies.

The purpose of this paper is to analyze agricultural total factor productivity (TFP) and input redundancies in different regions of China, and to bring out the policy implications for improving efficiency in agricultural production as well as environment protection.

Based on the provincial panel data during 1995-2014, the agricultural productivity of China and its regional disparity are analyzed. First, the agricultural TFP and its decomposition are dynamically evaluated by means of data envelopment analysis-Malmquist productivity index. Second, the agricultural radial production efficiency in year 2014 and the input redundancy changes from 1995 to 2014 are measured based on the BCC-slacks-based measure model.

The results showed that the overall agricultural TFP of China grew 4.3 percent annually during 1995-2014, mainly as a result of technical progress. However, the declines of technical efficiency and scale efficiency slowed down the agricultural TFP growth. The TFP growth in the Western region and Central region far exceeded the Eastern region in last few years. In 2014, most effective decision-making units were in the Western region. The input redundancies in the agricultural production increased substantially after 2006, especially for the pesticide use amount, reservoir capacity and agricultural machinery power.

Combining the dynamic and static analyses, the paper fulfilled the study of China’s agricultural productivity and the input redundancies in recent years, and also presented the regional disparities.

The purpose of this paper is to examine the effect of coffee production on poverty among smallholder farmers.

National Household Survey data for Uganda were triangulated with qualitative field data. A mix of propensity score matching (PSM) and quantile treatment effect techniques was employed.

The results reveal a significant effect of coffee production on poverty reduction, through incremental household consumption expenditure. Households engaged in coffee production are associated with a lower incidence of poverty. The interesting evidence suggests that coffee production is a pro-poor intervention. These findings are confirmed by qualitative assessment that reveals farmers’ welfare improved to greater extent to satisfactory levels from coffee income.

Econometrically robust strategies were employed to ensure minimal estimation bias; however, the authors are mindful of PSM limitation of selection on observables.

This paper is part of a limited body of literature that combines quantitative and qualitative assessment, a growing issue in contemporary research. In addition to employing one of the conventional impact evaluation techniques, the paper accounts for heterogeneity in the effects of coffee production.

The purpose of this paper is to investigate the relationship between poverty and technical efficiency (TE) of paddy farmers in presence of their heterogeneous selling behaviours. This paper explains how such behavioural heterogeneity affects this relationship in south-western Bangladesh.

Translog production frontier model was used to estimate TE since it fitted the data set better. On the other hand, poverty indices were constructed by using P-α method. Then, multinomial logit models examined the existence of heterogeneous selling behaviours. It revealed adequate evidences in favour of behavioural heterogeneity. Finally, the authors employed a series of two stage instrumental variable regression models to relate poverty and TE with and without considering the behavioural heterogeneity.

The study finds that around 18, 39 and 44 per cent of households exhibit autarkic, non-wholesaling and wholesaling behaviour, respectively. Market failure due to transaction cost and credit constraints leads to emergence of such heterogeneity. Across these heterogeneous behaviours, impact of improving TE on poverty status significantly differs. Without controlling behavioural heterogeneity, TE significantly improves the poverty status of the rural farm households. However, scenario is changed after controlling this heterogeneity. After behavioural segregations, TE improves poverty status only for wholesalers. In contrary to prior expectation, it worsens the poverty situation for both autarkic and non-wholesaling households. Simultaneous failure in both credit and product market for these households might be the plausible reason behind this heterodox finding. Credit market failure compels these households to borrow from local money lenders with costlier terms. This effort might improve their TE. But, product market failure makes their additional production due to improved TE unsold. Thus, repayment of credit directly reduces their consumption expenditure. Therefore, an effort to improve TE might increase prevalence and depth of poverty when market failure exists. Henceforth, the improvement of TE appears as an effective policy instrument only when households exhibit wholesaling behaviour.

The earlier studies show the relationship between TE and poverty status but did not account behavioural heterogeneity. The authors attempt to overcome this shortcoming and show how market failure induced behavioural heterogeneity affects the effectiveness of TE on improving poverty status of farm households.

The purpose of this paper is to assess the impact of sectoral economic growth and other factors on poverty reduction in Vietnam in the period 2010–2016.

Originating from the question of whether there is an endogenous problem between the structure of economic growth by sector and some other factors in the process of impact on poverty reduction, the paper has used the 2-Stage Least Squares method to deal with the endogenous issues.

Increasing the proportion of the industrial sector and the agricultural sector had great impacts on poverty reduction. In contrast, the increasing proportion of the service sector made the poverty rate higher. One noticeable thing is that economic growth was not significant for the goal of poverty reduction in 2010–2016. In addition, the process of urbanization, the increase in the labor rate and literacy rate contributed positively to poverty reduction achievements. Finally, population growth was also one of the reasons hindering Vietnam’s successful poverty reduction process.

Accelerating the process of economic restructuring in the direction of increasing the proportion of the industry is accompanied by more attention to agricultural development than the service sector. Employment creation policies should be promoted. Maintaining population control by educating poverty reduction awareness for the poor will have a positive effect on long-term poverty reduction.

Research on the growth structure by sector affecting poverty reduction in Vietnam is still relatively limited. The study of relationships in the context of endogenous existence is still quite limited in Vietnam. Therefore, this paper has focused on the question of sectoral economic growth affects poverty in the interrelation among sectors in the process of economic development.

Most poverty research has explored monetary poverty. This chapter presents and analyzes the global multidimensional poverty index (MPI) estimations for China. Using China Family Panel Studies (CFPS), we find China’s global MPI was 0.035 in 2010 and decreased significantly to 0.017 in 2014. The dimensional composition of MPI suggests that nutrition, education, safe drinking water, and cooking fuel contribute most to overall non-monetary poverty in China. Such analysis is also applied to subgroups, including geographic areas (rural/urban, east/central/west, provinces), as well as social characteristics such as gender of the household heads, age, education level, marital status, household size, migration status, ethnicity, and religion. We find the level and composition of poverty differs significantly across certain subgroups. We also find high levels of mismatch between monetary and multidimensional poverty at the household level, which highlights the importance of using both complementary measures to track progress in eradicating poverty.

The purpose of this paper is to examine the incidence of public education subsidies in Ghana. Since the late 1990s, Ghana’s government has increasingly recognized human capital as key to alleviating poverty and income inequality, causing dramatic increases of government expenditures to the education sector. At the same time user fees have been introduced in higher education while basic education is being made progressively free. The question then is, whether these spending increases have been effective in reaching the poor and to what extent? What factors influence the poor’s participation in the public school system?

The authors address the key issues by employing both the standard benefit incidence methods and the willingness-to-pay method.

The results give a clear evidence of progressivity with consistent ordering: pre-schooling and primary schooling are the most progressive, followed by secondary, and then tertiary. Own price and income elasticities are higher for private schools than public schools and for secondary than basic schools.

Given the liquidity constraints African governments face yet there is the need to improve the human capacity of the countries, this study offers solution to how to optimally allocate the educational budget.

The use of policy simulations to ascertain the incidence of public spending on education is innovative as far as previous studies in Africa is concerned.

The purpose of this paper is to investigate the effects of climate smart agriculture knowledge transfers. As well as to examine the application of climate-smart agricultural (CSA) knowledge such as conservation agriculture, irrigation systems, integrated soil fertility management, bioenergy and agroforestry by smallholder farmers in Kenya.

The study applied comparative research methodology to compare climate smart agriculture knowledge application between smallholder participants in farmer field schools (FFS) and no FFS participation. This study used household data from 759 randomly selected rural agricultural households in three counties in Kenya. The study applied multivariate probit model to estimate CSA knowledge application by farmers who participated in field trainings and non-FFS participation farmers.

This study established that climate smart agriculture knowledge transfer through FFS increases farmers’ application of critical aspects of climate smart agriculture knowledge practices such as irrigation system, conservation agriculture and soil and water conservation. Such aspects have been noted as effective interventions against adverse climate change effects such as persistent droughts and flooding and soil infertility. Further findings illustrated that farmers who received CSA knowledge transfers applied agricultural insurance to mitigate rising climatic risks on their farms. Knowledge transfer interventions targeting affordability through subsidizing agricultural insurance are probable and more cost-effective measures that can be used to reduce smallholder farmers’ exposure to climate change-related risks.

This study provides information that was previously unknown about climate smart agriculture knowledge transfers and application among farmers who participated in field trainings and non-FFS participation farmers by using empirical data.