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Article
Publication date: 14 October 2019

Md Ejaz Anwer, Bimal Kishore Sahoo and Simantini Mohapatra

Agriculture diversification acts as income enhancing as well as distress mitigating strategy. India has witnessed rise in per-capita income which in turn has increased the demand…

Abstract

Purpose

Agriculture diversification acts as income enhancing as well as distress mitigating strategy. India has witnessed rise in per-capita income which in turn has increased the demand for food particularly high-valued food items but agricultural production has failed to keep pace with the growing demand. The purpose of this paper is to examine spatio-temporal variations in agricultural diversification (AD) in India. Second, the authors try to identify the determinants of AD. Third, the authors examine the convergence hypothesis with reference to agriculture diversification across Indian states.

Design/methodology/approach

The study is based on the panel data constituting 20 major states of India during 1990–1991 to 2013–2014. It uses Simpson Diversification Index to measure AD. The heteroskedasticity-corrected panel regression model is applied to find out the determinants of AD. The fixed-effects model is used to examine β-convergence in AD across the sample states. Alternative time series models are applied to examine σ-convergence in AD.

Findings

The rising per-capita income and urbanization are driving dietary diversity towards high-valued crops and providing ample opportunity for AD. But poor and inadequate cold storage facility and rising cost of cultivation are posing major hindrance to it. Small land holding and road length have negatively influenced AD which is contrary to the traditional wisdom. The study found divergence in diversification and rising inequality in diversification.

Research limitations/implications

The study is based on secondary data. A primary study to complement this could have been better. It is only based on one country.

Social implications

Food inflation has serious adverse effect on the society at large. It is necessary to promote AD for controlling food price inflation. Minimum support price provided by the government should be extended to all crops; otherwise, it will fuel inflation. Given the fact fragmentation of land holding is adversely affecting AD, community based farming and consolidation of farm land should be the way forward to improve farmers’ income as well as reduce risk.

Originality/value

To best of the authors’ study, this is the first study that examines determinants of AD and convergence in AD during the high growth period of India.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 9 no. 5
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 10 November 2022

Vandana Sehgal

This study aims to evaluate the effectiveness of crop diversification in increasing the income of farm households. In addition, this study introduces the impact of natural…

Abstract

Purpose

This study aims to evaluate the effectiveness of crop diversification in increasing the income of farm households. In addition, this study introduces the impact of natural disasters in the analysis to determine how diversification helps mitigate the negative effect of disasters on farm income. More importantly, the study also analyses the effect of diversification on farm income by farm class to see where the benefits of diversification are concentrated.

Design/methodology/approach

This study uses a linear model, in which agricultural income is expressed as a function of diversification, natural disasters and several control variables. Diversification is measured using the Simpson index of diversification. The linear model is enhanced with the inclusion of an interaction term of natural disasters with the diversification index to shed light on the role of diversification in negating their harmful effect on agricultural income. Finally, to analyze the impact of institutional variables on farm income, the interactions of diversification with irrigation, insurance, usage of technical information and formal training are incorporated in the linear model.

Findings

The study highlights the importance of demographic, farm and institutional variables in raising farm income. The study suggests that an increase in education level, irrigation, usage of technical information and possession of Kisan Credit Card (KCC) have a positive impact on agricultural income. The study reveals that crop diversification has a positive impact on farm income and the benefits of diversification are conditioned by institutional factors. Thus, there is a need for policy intervention to ensure increased irrigation facilities along with extension services to provide information to the farm households. It has been found that small farmers gain more from crop diversification than larger farmers. Furthermore, the results show that natural disasters negatively impact farm income, but their impact can be mitigated by higher levels of diversification.

Originality/value

The results of the study are based on the recent unit-level data from the 77th Round of the National Sample Survey Office survey. The survey covers a large number of farm households and reports information for the year 2018–2019.

Details

Indian Growth and Development Review, vol. 16 no. 1
Type: Research Article
ISSN: 1753-8254

Keywords

Article
Publication date: 16 June 2021

Bismark Amfo, James Osei Mensah, Ernest Baba Ali, Gilbert Dagunga, Seth Etuah and Robert Aidoo

This study investigates implications of crop and income diversifications on consumption expenditure (welfare) of rice-producing households in Ghana. It further compares…

Abstract

Purpose

This study investigates implications of crop and income diversifications on consumption expenditure (welfare) of rice-producing households in Ghana. It further compares diversification by three rice production systems: two-season rain-fed, two-season irrigated and one-season rain-fed rice production.

Design/methodology/approach

Primary data were sourced from 225 rice farmers. Margalef index and three-stage least-squares were employed.

Findings

Majority of rice-farming households in Ghana diversify livelihoods. The extent of livelihood diversification differs among two-season rain-fed, two-season irrigated and one-season rain-fed rice-producing households. Credit, distance to district capitals, production purpose and number of farming seasons influence crop and income diversifications, and consumption expenditure of rice-producing households. While crop diversification reduces consumption expenditure, income diversification increases it. Crop and income diversifications positively influence each other. Consumption expenditure reduces crop diversification but increases income diversification.

Practical implications

Policy should be directed towards the promotion of more livelihood activities to boost rice farmers' welfare. There should be awareness creation and training programmes to enable rice farmers realize different economic activities within and outside the agricultural value chain.

Originality/value

Crop and income diversifications were measured as continuous response variables, unlike previous studies that used a binary response variable. The authors established a synergy among crop and income diversifications, and consumption expenditure (welfare). The authors further compared crop and income diversifications by three rice production systems: two-season rain-fed, two-season irrigated and one-season rain-fed rice production systems.

Article
Publication date: 10 August 2015

Kidanemariam Gebregziabher Gebrehiwot

The purpose of this paper is to investigate the impact of the Integrated Household Extension Program (IHEP) on participant households’ welfare and see the policy effectiveness…

Abstract

Purpose

The purpose of this paper is to investigate the impact of the Integrated Household Extension Program (IHEP) on participant households’ welfare and see the policy effectiveness. The government of Ethiopia – in contrast to the majority of countries in Sub-Saharan Africa – invests heavily in agricultural extension but very little empirical evidence is available on the impact of the services on farm performance and household welfare that could justify these investments. The IHEP program is a particularly interesting case as it is an example on how agricultural extension systems in developing countries changed during the past two decades, from centralized top-down technology-transfer-orientated approaches to decentralized, participatory and more integrated approaches.

Design/methodology/approach

The authors use household survey data from 730 farm households (361 treated and 369 control) in the Tigray region of Ethiopia and propensity score matching methods to estimate the impact.

Findings

The authors find that the extension program had a large positive impact on household welfare – increasing income with about 10 percent – and on investment but have not impacted on income diversification. In addition to the main variable of interest (extension), household characteristics, such as household head age, gender, adult labor availability in the household, asset holdings and social capital variables were found to have an influence on income, investment and income diversification.

Originality/value

The paper has tried to assess the impact of a program which claiming substantial public money using primary data. Hence, the findings will serve to inform policy makers as how the program is running.

Details

International Journal of Social Economics, vol. 42 no. 8
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 15 September 2020

Junpeng Li, Wanglin Ma, Alan Renwick and Hongyun Zheng

The objective of this study is to estimate the impacts of access to irrigation on farm income, household income and income diversification.

Abstract

Purpose

The objective of this study is to estimate the impacts of access to irrigation on farm income, household income and income diversification.

Design/methodology/approach

This study employs an endogenous switching regression (ESR) model to address the selection bias arising from both observed and unobserved factors and analyze cross-sectional data collected from Fujian, Henan and Sichuan provinces in China. The authors use the Simpson index to measure household income diversification. The propensity score matching (PSM) model and control function approach are also used for comparison purpose.

Findings

After controlling for the selection bias, the authors find that access to irrigation has a positive and statistically significant impact on rural incomes and diversification. The treatment effects of access to irrigation are to increase farm income, household income and income diversification by around 14, 10 and 107%, respectively. The positive effects of access to irrigation are confirmed by the estimates of the PSM model and control function approach. Further analysis reveals that the irrigation effects on rural incomes and diversification are heterogeneous between small-scale and large-scale farmers and between male-headed and female-headed households.

Practical implications

The authors’ findings suggest that the government should continue to improve irrigation infrastructure construction in rural China to promote smallholder farmers' water access and at the same time facilitate farmers' access to better agronomic and irrigation information. There exist gender and farm size related income and diversification effects of access to irrigation, and the irrigation access is associated with farm location. Thus, when developing regional irrigation programs consideration needs to be taken of whether the rural farming systems are dominated by male/female household heads and land fragmentation/consolidation issues.

Originality/value

Although a large body of literature has investigated the effects of irrigation development in rural areas, little is known about the impact of access to irrigation on income diversification. The selection bias associated with unobserved heterogeneities is usually neglected in previous studies. This study provides the first attempt by examining the impacts of access to irrigation on rural incomes and diversification, using the ESR model to address both observed and unobserved selection bias.

Details

China Agricultural Economic Review, vol. 12 no. 4
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 8 February 2013

Kolawole Ogundari

The purpose of this paper is to identify the trends in crop diversification (CD) while examining its impact on the technical efficiency of peasant farmers in Nigeria.

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Abstract

Purpose

The purpose of this paper is to identify the trends in crop diversification (CD) while examining its impact on the technical efficiency of peasant farmers in Nigeria.

Design/methodology/approach

The paper employs the Herfindahl and Ogive indices to compute the diversification indices and the stochastic frontier production model (SFPM) to estimate the technical efficiency (TE) level of the farms using unbalanced panel data covering three farming seasons (2006/2007 to 2008/2009).

Findings

The results of both the Herfindahl and Ogive indices showed that cropping pattern increased significantly with the intensification of crop diversification in the study across the three seasons. The result of the SFPM shows evidence of decreasing returns‐to‐scale and technical progress in the food crop production in the region. Education, extension, and CD are identified as efficiency increasing policy variables while an average TE level of about 81 percent was obtained from the analysis.

Originality/value

To the best of the author's knowledge, this the very first study that employs panel data to analyze technical efficiency of farms in Nigeria.

Details

International Journal of Social Economics, vol. 40 no. 3
Type: Research Article
ISSN: 0306-8293

Keywords

Open Access
Article
Publication date: 20 December 2021

Mingze Wu, Yueji Zhu and Qi Yang

Farmers' adaptation strategies in agricultural production are required to minimise the negative impact of climate change on a nation's food production in developing countries…

1719

Abstract

Purpose

Farmers' adaptation strategies in agricultural production are required to minimise the negative impact of climate change on a nation's food production in developing countries. Based on the panel data of the provincial level in China from 2000 to 2017, this study aims to analyse the changing climate over recent years and farmers' adaptation strategy in terms of cropping in agricultural production.

Design/methodology/approach

This study uses Simpson's diversity index (SDI) to measure the degree of crop diversity planted by farmers and evaluate the influence of climate change on farmers' cropping strategy using the fixed-effect model. Further, the authors estimate the impact of farmers' cropping strategy on their economic performances in two aspects including yields and technical efficiency of crops.

Findings

The empirical results show that the overall climate appears a warming trend. Different from farmers in some other countries, Chinese farmers tend to adopt a more specialised cropping strategy which can significantly improve the technical efficiency and yields of crops in agriculture. In addition, as a moderating role, the specialised cropping can help farmers to alleviate the negative impact of climate change on technical efficiency of their crops.

Originality/value

First, previous studies showed that the changing climate influenced farmers' adaptation strategies, while most studies focussed on multiple adaptation strategies from the farm-level perspective rather than cropping strategy from the nation-level perspective. Second, the present study investigates how the cropping strategy affects the economic performance (in terms of the technical efficiency and crop yields) of agricultural production. Third, the stochastic frontier analysis method is used to estimate the technical efficiency. Fourth, this study explores the moderating effect between farmers' cropping strategy and technical efficiency by introducing an interaction item of SDI and accumulated temperature.

Details

International Journal of Climate Change Strategies and Management, vol. 14 no. 1
Type: Research Article
ISSN: 1756-8692

Keywords

Open Access
Article
Publication date: 24 January 2023

Menglan Wang and Manh Hung Do

The authors examine the factors affecting households' resilience capacities and the impacts of these capacities on household consumption and crop commercialization.

1160

Abstract

Purpose

The authors examine the factors affecting households' resilience capacities and the impacts of these capacities on household consumption and crop commercialization.

Design/methodology/approach

The authors use panel data of 1,648 households from Thailand collected in three years, 2010, 2013 and 2016. The authors employ an econometric model with an instrumental variable approach to address endogenous issues.

Findings

The study results show that the experience of shocks in previous years positively correlates with households' savings per capita and income diversification. Further, a better absorptive capacity in the form of better savings and a better adaptive capacity in the form of higher income diversification have a significant and positive influence on household expenditure per capita and crop commercialization.

Practical implications

Development policies and programs aiming to improve income, increase savings and provide income diversification opportunities are strongly recommended.

Originality/value

The authors provide empirical evidence on the determinants of resilience strategies and their impacts on local food commercialization from a country in the middle-income group.

Details

Journal of Economics and Development, vol. 25 no. 2
Type: Research Article
ISSN: 1859-0020

Keywords

Book part
Publication date: 10 November 2020

Mark Schaub and Garland Simmons

American depository receipts (ADRs) listed on the New York Stock Exchange during the 1990s and 2000s are compared to determine how well they performed versus the US index and…

Abstract

American depository receipts (ADRs) listed on the New York Stock Exchange during the 1990s and 2000s are compared to determine how well they performed versus the US index and respective regional indexes utilizing three-year holding period excess returns. Results suggest that ADRs listed in the 2000s perform better than those in the 1990s. Also, seasoned equity offerings performed better than initial public offerings. Regression analysis indicated the best predictors of ADR performance are the returns of the respective regional index where the ADR-listing firm is headquartered, the date of issue (2000s vs 1990s), and whether the ADR was from an emerging economy.

Details

Financial Issues in Emerging Economies: Special Issue Including Selected Papers from II International Conference on Economics and Finance, 2019, Bengaluru, India
Type: Book
ISBN: 978-1-83867-960-6

Keywords

Article
Publication date: 1 September 2000

Index by subjects, compiled by K.G.B. Bakewell covering the following journals: Facilities Volumes 8‐17; Journal of Property Investment & Finance Volumes 8‐17; Property Management…

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Abstract

Index by subjects, compiled by K.G.B. Bakewell covering the following journals: Facilities Volumes 8‐17; Journal of Property Investment & Finance Volumes 8‐17; Property Management Volumes 8‐17; Structural Survey Volumes 8‐17.

Details

Facilities, vol. 18 no. 9
Type: Research Article
ISSN: 0263-2772

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