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Article
Publication date: 30 August 2018

Paul Kwame Nkegbe

The purpose of this paper is to examine the relationship between credit access and technical efficiency of smallholder crop farmers in northern Ghana.

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Abstract

Purpose

The purpose of this paper is to examine the relationship between credit access and technical efficiency of smallholder crop farmers in northern Ghana.

Design/methodology/approach

The study uses a random sample of 445 farming households in the three northern regions of Ghana. The two-stage double bootstrap DEA approach was used to consistently estimate technical efficiency scores as well as the determinants.

Findings

The results revealed that, given the current technology, there is substantial yield or productivity gap among the sample of producers in northern Ghana used for the study. This is because producers can reduce input use by over 50.0 percent while still achieving the same output levels. It is further revealed that proportion of household income from off-farm activities, distance of farm from homestead, location and credit access are significant determinants of technical efficiency.

Originality/value

The current study differs from previous studies in two basic ways. First, it takes into account the fact that smallholder farmers practise mixed or inter-cropping by using value of output so that various crops on a given plot of the farmer can be aggregated; and second, a nonparametric approach is adopted so that the inherent inconsistencies in using the two-step model within a parametric framework can be avoided.

Details

Agricultural Finance Review, vol. 78 no. 5
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 7 March 2016

Ricardo Monge-González, Juan Antonio Rodríguez-Alvarez and Juan Carlos Leiva

The purpose of this paper is to estimate the impact of one productive development program (PROPYME) in a developing nation like Costa Rica. This program seeks to increase the…

Abstract

Purpose

The purpose of this paper is to estimate the impact of one productive development program (PROPYME) in a developing nation like Costa Rica. This program seeks to increase the capacity of small and medium-sized firms (SMEs) to innovate.

Design/methodology/approach

Impacts have been estimated assuming that beneficiary firms are trying to maximize their profits and that PROPYME aims to increase these firms productivity. The impacts were measured in terms of three result variables real average wages employment demand and the probability of exporting. A combination of fixed effects and propensity score matching techniques was used in estimations to correct for any selection bias. The authors worked with panel data companies treated and untreated for the period 2001-2011.

Findings

PROPYME’s beneficiaries performed better than other firms in terms of labor demand and their probability of exporting. In addition, the dose and the duration of the effects of the treatment (timing effects) are important.

Originality/value

The authors study the impact in ways that go beyond the average treatment effects on the treated (ATT) usually estimated in the existing literature. Specifically, the research focusses on the identification of the timing or dynamic effects (i.e. how long should we wait to see results?) and treatment intensity (dosage effects).

Propósito

Se estima el impacto de un programa de desarrollo productivo (Propyme) en un país en vías de desarrollo como Costa Rica. El Propyme busca incrementar la capacidad innovadora de las pequeñas y medidas empresas (pymes) costarricenses.

Diseño/metodológico

el impacto se ha estimado y evaluado asumiendo que las pymes beneficiaras buscan maximizar sus beneficios y que Propyme se enfoca en incrementar la productividad de esas empresas. El impacto se valoró en función de tres variables: salarios reales medios, empleo demandado y la probabilidad de exportar. Se utilizó una combinación de técnicas de efectos fijos y emparejamiento en las estimaciones con el fin de prevenir sesgos de selección. Se trabajó con un panel de datos, incluyendo empresas tratadas (beneficiarias de Propyme) así como no tratadas para el periodo 2001-2011.

Hallazgos

los beneficiarios de Propyme tuvieron mejor desempeño que las restantes empresas en términos de empleo demandado y su posibilidad de exportar. Adicionalmente los efectos dinámicos (dosis y duración) de los tratamientos son importantes.

Originalidad y valor

este artículo evalúa el impacto de una forma que va más allá de lo usual en la literatura por medio de los efectos promedios de los tratamientos sobre los beneficiarios. Esto por cuanto se enfoca en efectos dinámicos como la duración así como la intensidad.

Article
Publication date: 13 November 2017

Swaibu Mbowa, Tonny Odokonyero, Tony Muhumuza and Ezra Munyambonera

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

Abstract

Purpose

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

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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

Originality/value

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.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 7 no. 3
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 21 August 2020

Olufemi D. Bolarinwa, James F. Oehmke and Charles B. Moss

The lack of theoretical and pragmatic way of measuring agricultural commercialization has been responsible for the inconsistent results for the impact of agricultural…

Abstract

Purpose

The lack of theoretical and pragmatic way of measuring agricultural commercialization has been responsible for the inconsistent results for the impact of agricultural commercialization on household welfare. This study makes use of an input-based market participation approach that utilizes household preplanting production decision to stratify farming households according to production orientation.

Design/methodology/approach

The study estimates a system of input and consumer demand equations. It augments traditional input and consumer demand equations with an additional variable based on an endogenous switch, which measures the probability of being a commercial farming household. Empirical evidence suggests that market orientation is an important determinant of the level of traded input and hence, market participation. Predicted probabilities obtained from the endogenous switch are used to stratify households into subsistence and commercial agricultural households.

Findings

Results of the relative effect of commercial agriculture on the level of household food security support the claim that production orientation does affect the relationship between the relative share of food expenditure to the household total expenditures and the logarithm of household expenditure for this part of sub-Saharan Africa.

Research limitations/implications

As in the case of all generalized method of moments studies, the results depend on the robustness of the instruments. However, search for better instruments may run afoul of Leamer's ad hoc specification search with nonexperimental data.

Originality/value

This paper is original in its formulation of an endogenous switch between subsistence and commercial agriculture. This switch is estimated as a latent variable following a logit form.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 11 no. 5
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 7 September 2015

Magnus Hatlebakk

The purpose of this paper is to investigate why poor people make decisions that at first sight appear irrational. The author stays within the realms of classical consumption…

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Abstract

Purpose

The purpose of this paper is to investigate why poor people make decisions that at first sight appear irrational. The author stays within the realms of classical consumption theory, and investigates preference-based explanations. The author studies the case of rickshaw rental versus purchase. One-year rent is sufficient to buy a rickshaw in the plains of Nepal, while a rickshaw will last many years, so purchase appears very profitable. Still most cyclists rent the rickshaw.

Design/methodology/approach

Based on choices made by rickshaw cyclists between hypothetical financing schemes for rickshaws we investigate whether the explanation is a high time-preference rate or a high elasticity of the marginal utility of consumption, which in turn can be explained by preferences that are formed by consumption near a subsistence level.

Findings

The authors find that subsistence constraints are more important than high time-preference rates. In short, many rickshaw cyclists switch from profitable investment decisions to myopic choices if the weekly payments are too high.

Research limitations/implications

In contrast to standard bidding-forms, the methodology does not allow for exact estimates of the implied time-preference rate or the elasticity of the marginal utility of consumption.

Practical implications

Microcredit has no role if people are subsistence constraint, as they will need to save every day also to repay loans.

Social implications

The findings indicate that myopic choices by poor people are not due to myopic preferences, but rather that the disutility of reducing consumption today is too high.

Originality/value

The authors believe bidding-forms are too complex for field experiments among people with no, or minimal, education. The simple hypothetical choices we have constructed appear to work.

Details

International Journal of Development Issues, vol. 14 no. 3
Type: Research Article
ISSN: 1446-8956

Keywords

Article
Publication date: 13 March 2017

Russell Ashmore and Neil Carver

The purpose of this paper is to determine what written information is given to informally admitted patients in England and Wales regarding their legal rights in relation to…

Abstract

Purpose

The purpose of this paper is to determine what written information is given to informally admitted patients in England and Wales regarding their legal rights in relation to freedom of movement and treatment.

Design/methodology/approach

Information leaflets were obtained by a search of all National Health Service mental health trust websites in England and health boards in Wales and via a Freedom of Information Act 2000 request. Data were analysed using content analysis.

Findings

Of the 61 organisations providing inpatient care, 27 provided written information in the form of a leaflet. Six provided public access to the information leaflets via their website prior to admission. Although the majority of leaflets were accurate the breadth and depth of the information varied considerably. Despite a common legal background there was confusion and inconsistency in the use of the terms informal and voluntary as well as inconsistency regarding freedom of movement, the right to refuse treatment and discharge against medical advice.

Research limitations/implications

The research has demonstrated the value of Freedom of Information Act 2000 requests in obtaining data. Further research should explore the effectiveness of informing patients of their rights from their perspective.

Practical implications

Work should be undertaken to establish a consensus of good practice in this area. Information should be consistent, accurate and understandable.

Originality/value

This is the only research reporting on the availability and content of written information given to informal patients about their legal rights.

Details

Mental Health Review Journal, vol. 22 no. 1
Type: Research Article
ISSN: 1361-9322

Keywords

Article
Publication date: 8 January 2018

Minh Quang Dao

The purpose of this paper is to empirically test a more comprehensive model of economic growth using a sample of 28 lower middle-income developing countries.

Abstract

Purpose

The purpose of this paper is to empirically test a more comprehensive model of economic growth using a sample of 28 lower middle-income developing countries.

Design/methodology/approach

The authors modify the conventional neoclassical growth model to account for the impact of the increase in the number of people working relative to the total population and that of the increase in the value added per worker over time. The authors then extend this model by incorporating the role of trade, government consumption, and human capital in output growth.

Findings

Regression results show that over three quarters of cross-lower middle-income country variations in per capita GDP growth rate can be explained by per capita growth in the share of public expenditures on education in the GDP, per capita growth in the share of government consumption in the GDP, per capita growth in the share of imports in the GDP, per capita growth in the share of manufactured exports in the GDP (not of that of total exports in the GDP), and the growth of the working population relative to the total population.

Practical implications

Statistical results of such empirical examination will assist governments in these countries identify policy fundamentals that are essential for economic growth.

Originality/value

To address the simultaneity bias, the authors develop a simultaneous equations model and are able to show that such model is more robust and helps explains cross-country variations in per capita GDP growth over the 2000-2014 period.

Article
Publication date: 19 December 2023

N'Banan Ouattara, Xueping Xiong, Abdelrahman Ali, Dessalegn Anshiso Sedebo, Trazié Bertrand Athanase Youan Bi and Zié Ballo

This study examines the impact of agricultural credit on rice farmers' technical efficiency (TE) in Côte d'Ivoire by considering the heterogeneity among credit sources.

Abstract

Purpose

This study examines the impact of agricultural credit on rice farmers' technical efficiency (TE) in Côte d'Ivoire by considering the heterogeneity among credit sources.

Design/methodology/approach

A multistage sampling technique was used to collect data from 588 randomly sampled rice farmers in seven rice areas of the country. The authors use the endogenous stochastic frontier production (ESFP) model to account for the endogeneity of access to agricultural credit.

Findings

On the one hand, agricultural credit has a significant and positive impact on rice farmers' TE. Rice farmers receiving agricultural credit have an average of 5% increase in their TE, confirming the positive impact of agricultural credit on TE. On the other hand, the study provides evidence that the impact of credit on rice production efficiency differs depending on the source of credit. Borrowing from agricultural cooperatives and paddy rice buyers/processors positively and significantly influences the TE, while borrowing from microfinance institutions (MFIs) negatively and significantly influences the TE. Moreover, borrowing from relatives/friends does not significantly influence TE.

Research limitations/implications

Future research can further explore the contribution of agricultural credit by including several agricultural productions and using panel data.

Originality/value

The study provides evidence that the impact of agricultural credit on agricultural production efficiency depends on the source of credit. This study contributes to the literature on the impact of agricultural credit and enlightens policymakers in the design of agricultural credit models in developing countries, particularly Côte d'Ivoire.

Details

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

Keywords

Book part
Publication date: 30 May 2018

Zelalem Yilma, Owen O’Donnell, Anagaw Mebratie, Getnet Alemu and Arjun S. Bedi

Little is known about perceptions of medical expenditure risks despite their presumed relevance to the demand for health insurance. This is the first study to examine households’…

Abstract

Little is known about perceptions of medical expenditure risks despite their presumed relevance to the demand for health insurance. This is the first study to examine households’ beliefs about their future spending on health care. The study made a unique elicitation of subjective probabilities of medical expenditures from rural Ethiopians participating in a panel survey and offered the opportunity to enrol in a health insurance programme. The vast majority of respondents give logically consistent responses to the subjective probability questions. The data indicate that the cross-sectional variance of realized expenditures, which is often used to proxy risk exposure, greatly overestimate the risk faced by any single household. Consistent with the serial correlation observed in realized expenditures, expectations are positively correlated with past expenses. They are revised upward in response to an increase in realized expenditure and, to some extent, they predict expenditure incurred in the year ahead. Despite containing information on future medical expenditures, there is no evidence that expectations influence the decision to take out health insurance, although plans to insure are positively related to the perceived volatility of expenses.

These results suggest that adverse selection may not threaten the viability of voluntary health insurance. A caveat is that measurement error in the reported probabilities may weaken the test for adverse selection. Notwithstanding this limitation, measurement of household-specific distributions of future medical expenses is feasible and avoids relying on the cross-sectional variance, which provides an upwardly biased estimate of medical expenditure risk.

Article
Publication date: 27 November 2023

Dikshit Poudel and Munisamy Gopinath

Ensuring adequate access to food to all has remained a major challenge of the 21st century. To aid the effort of hunger alleviation, many studies have quantified the prevalence of…

Abstract

Purpose

Ensuring adequate access to food to all has remained a major challenge of the 21st century. To aid the effort of hunger alleviation, many studies have quantified the prevalence of undernourishment (PoU), mostly at the national level. There has been limited attention to understanding the intra-country variation in undernourishment estimates.

Design/methodology/approach

Unlike past studies, this study tracks the substantial regional heterogeneity in the undernourishment status within Nepal. Employing Food and Agriculture Organization's methodology and Nepal Living Standards Survey data from 1995, 2003 and 2011, household energy consumption and requirements are computed to determine regional undernourishment.

Findings

Nepal's PoU declined between 1995 and 2003 but increased after 2003 affecting approximately 7.6 million Nepalese in 2011. The Terai domain – Provinces 2 and 5 – are found to be the most vulnerable to undernourishment concerns likely because of economic and natural shocks. Province 4 achieved higher progress in alleviating undernourishment during 2003, but its PoU doubled in 2011 (as in Province 6).

Research limitations/implications

By examining where and how many are undernourished within Nepal, this study has provided a more accurate picture of the PoU for better-targeting assistance to improve the livelihood of its citizens.

Originality/value

Past studies indicate substantial variation in food access and PoU within Nepal. While they provide some answers to “where and how many” questions for some districts, provinces, belts and urban/rural domains at the cross-sectional level (or for selected locales), few have examined intra-Nepal heterogeneity, especially over time. Therefore, this study explores where and how many within Nepal have been undernourished during the past three decades.

Details

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

Keywords

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