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Article
Publication date: 15 May 2009

Minh Quang Dao

The purpose of this paper is to estimate the determinants of rural and national poverty, of income distribution, and of agricultural growth in developing countries.

Abstract

Purpose

The purpose of this paper is to estimate the determinants of rural and national poverty, of income distribution, and of agricultural growth in developing countries.

Design/methodology/approach

Data for all variables are from the 2008 World Development Report. The author applies the least‐squares estimation technique in a multivariate linear regression.

Findings

It is found, from different size samples, that: the percentage of the rural population living below the national rural poverty line in a developing country is dependent upon the logarithm of per capita purchasing power parity gross national income and the region in which it is located; it linearly depends on its per capita agriculture value added and its geographic location; agriculture value added growth linearly depends on the share of women in the agricultural labor force, whether the developing country is agriculture‐based, and whether it is located in Europe or Central Asia; and agricultural productivity linearly depends on the amount of arable and permanent cropland per agricultural person, the share of women in the agricultural labor force, and the share of agricultural employment in total employment.

Originality/value

Statistical results in this paper will assist governments in developing countries assess the magnitude of agricultural policy variables in an effort to use agriculture as an engine for economic development.

Details

Journal of Economic Studies, vol. 36 no. 2
Type: Research Article
ISSN: 0144-3585

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Article
Publication date: 30 April 2020

Emmanuel Mamatzakis and Christos Staikouras

Common Agriculture Police in the EU, direct payments, solvency and income

Abstract

Purpose

Common Agriculture Police in the EU, direct payments, solvency and income

Design/methodology/approach

We employ agriculture data for all twenty-eight EU Member States. The data comes from the public Farm Accountancy Data Network (FADN) of the EU. In terms of methodology we employ panel regression and panel Vector Autoregression analysis (panel VAR) to take into account possible endogeneity issues.

Findings

The reported panel regressions, impulse response functions (IRFs) and variance decompositions (VDCs) show that agriculture income has been subdued due to negative shocks in direct payments and solvency. Our results do not support the hypothesis that higher direct payments would increase agriculture income. In addition, whilst solvency subdues agriculture income, investment asserts a positive impact on agriculture income.

Research limitations/implications

Further research on the impact of direct payments of CAP on EU agriculture is warranted at a disaggregate level so as to examine whether there is variability in the underlying interlinkages at regional level

Practical implications

As a policy implication, and in light of the ongoing reform of the EU's CAP, we would propose to raise net value added in agriculture using targeted income support to small and medium-sized farms. The European Economic Recovery Plan (EERP) would be also supportive. In addition, further enhancing financial integration across the EU would provide funds for investment in agriculture.

Social implications

As social implication, one would propose to raise investment in agriculture, that is through the European Economic Recovery Plan (EERP). The EERP is designed as a stimulus package set up to mitigate the consequences of the global financial crisis in the EU. Also, a way to boost agriculture income is through the credit channel of the on-going quantitative easing of the ECB, where unconventional monetary policy is aiming to support the growth prospect of the Euro area.

Originality/value

This study examines the impact of direct payments, which include all subsidies, of the EU's Common Agriculture Policy (CAP) on agriculture income as measured by the net value added. We also control for solvency. Despite the magnitude of CAP on the EU budget, few studies investigate the impact of direct payments on income in the aftermath of the financial crisis. This is surprising given the importance of agriculture for the economic recovery of the EU that remains anaemic more than a decade after the crisis.

Details

Agricultural Finance Review, vol. 80 no. 4
Type: Research Article
ISSN: 0002-1466

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Article
Publication date: 1 July 2021

Rizgar Abdlkarim Abdlaziz, N.A.M. Naseem and Ly Slesman

This study aims to investigate the contingent roles real effective exchange rates (REERs) play in mediating the effects of oil revenue on the agriculture sector value-added

Abstract

Purpose

This study aims to investigate the contingent roles real effective exchange rates (REERs) play in mediating the effects of oil revenue on the agriculture sector value-added in 25 major and minor oil-exporting (MIOEC) countries during the period of 1975–2014.

Design/methodology/approach

The panel autoregressive distributed lag (ARDL) estimator proposed by Pesaran et al. (1999) was relied upon to achieve the objectives of the study. This estimator involves a pool of small cross-sectional units over a long-time span that covers for 25 oil-exporting countries over 39 years (1975–2014).

Findings

This paper reveals the following findings. Firstly, oil revenue has a direct negative effect on agricultural value-added in the short- and long-term. This finding holds for full sample and subsamples of major oil-exporting (MAOEC) and MIOEC countries. Further assessment reveals that the magnitude of the impact is larger for MAOEC than that of the MIOEC. Secondly, the finding for the long-run effect shows that the contingent effect of real exchange rate on the nexus between oil revenue and agricultural value-added is negative and statistically significant at the conventional level for the full sample. This suggests that, in the long-run, the appreciation in real exchange rates exacerbate the negative marginal effects of oil revenue on agricultural value-added in all oil-exporting countries. However, when sub-samples of MAOEC and MIOEC are considered, the contingent effect disappeared (become insignificant) in MAOEC while it is positive and statistically significant in MIOEC. Thus, in the long-run, the appreciation in real exchange rates diminishes the negative marginal effects of oil revenue on agricultural value-added in MIOEC. While oil revenue has a direct negative effect, its effect is also moderated by the variations in REERs in MIOEC in the long-run. Finally, in the short-run, fluctuations in the real exchange rate do not matter for the nexus of oil revenue and agriculture sector in these countries whether minor or MAOEC countries.

Originality/value

This study contributes to the debate in the empirical literature on the Dutch disease effect and “oil curse”. Using the appropriate panel ARDL empirical framework, it provides evidence on how exchange rate variations in the oil-exporting countries influence the nature of the effects of the oil revenue on agricultural sectors in the long-run but not in the short-run. Contingent effects of REERs only appear to exist in MIOEC in the long-run.

Details

International Journal of Energy Sector Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-6220

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Article
Publication date: 21 October 2013

Abel Duarte Alonso and Jeremy Northcote

Multifunctional agriculture, including value-added agriculture, has drawn the attention of different stakeholders (government, farmers) interested in maximising the…

Abstract

Purpose

Multifunctional agriculture, including value-added agriculture, has drawn the attention of different stakeholders (government, farmers) interested in maximising the potential of farming operations and strengthening rural communities. This preliminary study aims to investigate value-added agriculture, including the extent to which food growers consider, or are involved in, this aspect of multifunctional agriculture, from the perspective of orchard operators located in different Australian states.

Design/methodology/approach

Orchard operators were contacted through regional growers' associations and by mail. A total of 80, the large majority of whom are small orchardists, participated in the study, completing a questionnaire designed to collect both quantitative and qualitative data.

Findings

Overall, there is moderate interest among the participating orchard operators in adding value to food production. Respondents also indicate barriers in the form of added expenses, lack of time, knowledge, and markets, to sell value-added products.

Research limitations/implications

This study has only provided preliminary data from a limited number of participants; future research could broaden the scope to gather the insights of more orchard operators or even study other rural food-growing sectors.

Practical implications

With increasing pressures on the farmland, the findings have several implications, in particular, the need to understand the cost-benefits involved in value adding activities and potential cost-savings strategies.

Originality/value

In the case of Australian agriculture, little has been discussed about the extent to which value-added food production is being considered among food growers, for instance, using commercial kitchens to process foods that do not sell as “premium.” The present study examines this unexplored dimension and seeks to provide useful preliminary information.

Details

British Food Journal, vol. 115 no. 10
Type: Research Article
ISSN: 0007-070X

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Book part
Publication date: 22 August 2018

Christian Stohr

This chapter does three things. First, it estimates regional gross domestic product (GDP) for three different geographical levels in Switzerland (97 micro regions, 16…

Abstract

This chapter does three things. First, it estimates regional gross domestic product (GDP) for three different geographical levels in Switzerland (97 micro regions, 16 labor market basins, and 3 large regions). Second, it analyzes the evolution of regional inequality relying on a heuristic model inspired by Williamson (1965), which features an initial growth impulse in one or several core regions and subsequent diffusion. Third, it uses index number theory to decompose regional inequality into three different effects: sectoral structure, productivity, and comparative advantage.

The results can be summarized as follows: As a consequence of the existence of multiple core regions, Swiss regional inequality has been comparatively low at higher geographical levels. Spatial diffusion of economic growth occurred across different parts of the country and within different labor market regions. This resulted in a bell-shaped evolution of regional inequality at the micro regional level and convergence at higher geographical levels. In early and in late stages of the development process, productivity differentials were the main drivers of inequality, whereas economic structure was determinant between 1888 and 1941. The poorest regions suffered from comparative disadvantage, that is, they were specialized in the vary sector (agriculture), where their relative productivity was comparatively lowest.

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Article
Publication date: 8 April 2020

Ebere Ume Kalu, Uchenna Florence Nwafor, Chinwe R. Okoyeuzu and Vincent A. Onodugo

The purpose of this study is to investigate the energy–growth linkage in sub-Saharan Africa (SSA), with emphasis on real sectors’ contribution to aggregate growth using…

Abstract

Purpose

The purpose of this study is to investigate the energy–growth linkage in sub-Saharan Africa (SSA), with emphasis on real sectors’ contribution to aggregate growth using dynamic panel estimation techniques that are practically and conceptually superior to the static models.

Design/methodology/approach

Dynamic panel econometric techniques pooled mean group, mean group and dynamic fixed effect were used to investigate the linkage among energy consumption, real sector value added and economic growth from 1967 to 2016 in 48 SSA countries.

Findings

A strong empirical evidence in favor of energy dependence and growth hypothesis in the investigated SSA countries was found. The finding that real sector value added and overall growth rate adjust reasonably to the shocks and dynamics of the energy consumption variables makes energy consumption an enabler for growth. This indicates that well thought-out and implemented energy development policy will not only increase energy consumption but also elicit multi-sectoral growth while addressing the obvious energy deficiency in the SSA region.

Research limitations/implications

It is also important to note the policy implications of the high adjustment profiles indicated by the error correction representations. All the speeds of adjustment of the three models denominated in time are slightly above a year and are all within predictable limits (they fall below unity or 100%). We found that when agriculture value added, manufacturing value added and overall economic growth rate in our SSA panel estimation exceed equilibrium levels as a result of deviations arising from energy related variables, downward adjustments at 66%, 62% and 78% per year, respectively, take place.

Practical implications

The study indicates that well thought-out and implemented energy development policy will not only increase energy consumption but also elicit multi-sectoral growth while addressing the obvious energy deficiency in the SSA region.

Social implications

Much as this study has made some addition to the literature on energy-growth nexus in the SSA region, which undoubtedly is an unveiling of economic forces in a collection of developing and energy deficient economies, it will be of great research significance if the form and style of this study is adopted for other economic blocs in the shapes and sizes of the SSA region.

Originality/value

This study ensured currency of data, novelty of approach and disaggregated energy consumption into emerging sources, traditional sources and geographical access.

Details

International Journal of Energy Sector Management, vol. 14 no. 5
Type: Research Article
ISSN: 1750-6220

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Article
Publication date: 12 July 2021

Oluyemi Theophilus Adeosun, Peter Asare-Nuamah and Franklin Nantui Mabe

Aside from oil, the Nigerian economy is largely agrarian, which is rain-fed. Hence the criticality of understanding climate change and its impact on agricultural output is…

Abstract

Purpose

Aside from oil, the Nigerian economy is largely agrarian, which is rain-fed. Hence the criticality of understanding climate change and its impact on agricultural output is more pressing than ever. This is in line with Sustainable Development Goal 13 which is to take urgent action to combat climate change and its impacts. Regardless, Nigeria has in the past five decades experienced a significant increase in temperature, in the range of 10 to over 30 degree Celsius. Therefore, managing the effect of climate change on agricultural output now has the colouration of a developmental challenge.

Design/methodology/approach

In light of this, this study gives due consideration to the impact of climate change on agricultural output between the years 1986 and 2015. For the purpose of analysis, descriptive statistics, unit root test and the ordinary least square (OLS) estimation technique were employed.

Findings

Findings from the study reveal that the average annual rainfall, temperature and forest area positively influence agricultural output, whereas drought, floods and agricultural nitrous oxide (N2O) emissions have negative impact on agricultural output. The study suggests the need for a regulatory framework and also an explicit national agricultural policy essential to offset the negative effects of climate change especially on agricultural output.

Originality/value

As Nigeria look to diversify her economy which relied on oil, agriculture is among the alternative sector hoping to drive her economic growth, therefore, it is pertinent to examine the current output in the sector given the effects of climate change.

Details

Management of Environmental Quality: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1477-7835

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Book part
Publication date: 25 May 2021

Emilia Mary Bălan, Laura Mariana Cismaș and Cristina Georgiana Zeldea

Introduction: Climate change and the limiting nature of fossil natural resources are compelling elements that have driven the search for environmentally friendly…

Abstract

Introduction: Climate change and the limiting nature of fossil natural resources are compelling elements that have driven the search for environmentally friendly alternatives to the traditional economy. In this context, as the main pillar of bioeconomy, biomass can contribute to energy sustainability, temper effects of climate change, and make the use of natural resources more efficiently. Central and Eastern European (CEE) countries have a relatively common economic history of agriculture playing a pivotal role in the former centralized economy. Purpose: This chapter analyzed the importance of biomass produced from residues of crops in CEE countries. This analysis is regarded as incentive to take a deeper look at biomass in CEE countries with acknowledged agricultural potential. CEE countries have been part of the former European socialist bloc, with agriculture being a core component of the centralized economy. Even though their economies have been undergoing a lengthy transition process to the market economy, this sector of activity still holds a significant share. Therefore, CEE countries provide a suitable ground for our analysis. Methodology: The authors selected characteristics of the agricultural sectors and development, and assess their relationship with biomass production in the CEE countries, using an Ordinary Least Squares method. Then, the authors investigate the environmental implications of crop biomass production in a similar framework. Findings: The results reveal that the agricultural biomass sector contributes to economic development, and it does not have negative implications for environmental indicators. These results show that biomass production is a sustainable target to be pursued.

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Article
Publication date: 2 July 2020

Yumei Zhang, Xinshen Diao, Kevin Z. Chen, Sherman Robinson and Shenggen Fan

The purpose of this study is to assess the potential economic cost of the COVID-19 pandemic on China's macroeconomy and agri-food system and provide policy recommendations…

Abstract

Purpose

The purpose of this study is to assess the potential economic cost of the COVID-19 pandemic on China's macroeconomy and agri-food system and provide policy recommendations to stimulate economic growth and agri-food system development.

Design/methodology/approach

An economy-wide multisector multiplier model built on China's most recent social accounting matrix (SAM) for 2017 with 149 economic sectors is used to assess the impact of COVID-19 on China's macroeconomy and agri-food system. SAM multiplier analysis focuses on supply chain linkages and captures the complexity of an interconnected economy.

Findings

The paper finds that both the macroeconomy and agri-food systems are hit significantly by COVID-19. There are three main findings. First, affected by COVID-19, GDP decreased by 6.8% in the first quarter of 2020 compared with that in 2019, while the economic loss of the agri-food system is equivalent to 7% of its value added (about RMB 0.26 trillion). More than 46m agri-food system workers (about 27% of total employment) lost their jobs to COVID-19 in the lockdown phase. The COVID-19 affects the employment of unskilled labor more than that of skilled labor. Second, when the economy starts to recover during the second and third quarters, the growth rate in the value added of the agri-food system turns positive but still modest. Many jobs resume during the period, but the level of agri-food system employment continues to be lower than the base. The agri-food system employment recovery is slower than that of other sectors largely due to the sluggish recovery of restaurants. Agri-food system employment drops by 8.6m, which accounts for about 33% of the total jobs lost. Third, although the domestic economy is expected to be normal in the fourth quarter, external demand still faces uncertainties due to the global pandemic. The agri-food system is projected to grow by 1.1% annually in 2020 with resuming export demand, while only by 0.4% without resuming export demand. These rates are much lower than an annual growth rate of 4.3% for the agri-food system in 2019. The results also show that, without resuming export demand, China's total economy will grow less than 1% in 2020, while, with export demand resumed, the growth rate rises to 1.7%. These rates are much lower than an annual GDP growth rate of 6.1% in 2019.

Practical implications

The results show that continuously reducing economic dependency on exports and stimulating domestic demand are key areas that require policy support. The agri-food system can play an important role in supporting broad economic growth and job creation as SMEs are major part of the AFS. Job creation requires policies to promote innovation by entrepreneurs who run numerous SMEs in China.

Originality/value

This paper represents the first systematic study assessing the impact of COVID-19 on China's agri-food system in terms of value added and employment. The assessment considers three phases of lockdown, recovery and normal phases in order to capture the full potential cost of COVID-19.

Details

China Agricultural Economic Review, vol. 12 no. 3
Type: Research Article
ISSN: 1756-137X

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Article
Publication date: 18 March 2019

Rukhsana Kalim, Noman Arshed and Sadaf Shaheen

In the past few years, the concept of competitiveness developed by the World Economic Forum has become the focal point. Global competitiveness index (GCI) presents the…

Abstract

Purpose

In the past few years, the concept of competitiveness developed by the World Economic Forum has become the focal point. Global competitiveness index (GCI) presents the constructs which are possible means of productivity of the country. The purpose of this study is to explore whether boosting the productivity of agriculture, services and industry sector is the possible channel of competitiveness leading to growth.

Design/methodology/approach

For this, panel GMM moderator model has been used for 16 low-income countries.

Findings

The results indicate that competitiveness helps agriculture and industry sector to become more growth productive, while it reduces the productivity of services sector.

Originality/value

This study urges that the gains from following the competition promotion policies overweigh the costs. Hence, low-income countries can break the low productivity trap.

Details

Competitiveness Review: An International Business Journal, vol. 29 no. 2
Type: Research Article
ISSN: 1059-5422

Keywords

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