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on Africa |
| By: | Wiebe, Kirsten Svenja (Maastricht University) |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ner:maastr:urn:nbn:nl:ui:27-29457&r=afr |
| By: | Amikuzuno, Joseph; Donkor, Samuel |
| Abstract: | Cross-border trade in food commodities within sub-regional economic blocks in Sub-Sahara Africa (SSA) is believed to be faster, cheaper, more convenient and welfare-enhancing than overseas trade between SSA countries and the USA, EU or the BRIC countries. The difficulty of commodity arbitrage across international borders in SSA is however a fundamental constraint to price transmission, market integration and realization of the welfare-enhancing role of cross-border trade in Africa. This study examines the impact of border and distance on price transmission between tomato markets in Ghana and Burkina-Faso. The analysis applies a regime-switching vector error correction model to estimate semi-weekly, wholesale prices of tomato in four tomato markets in Ghana and a production centre in Burkina-Faso. Estimated parameters of price transmission contain evidence of border and distance effects. This is expected since high transfer costs, including cross-border tariffs are incurred by traders in moving tomato across the border. Moreover, the perishable nature of tomato, and the poor quality of roads and transportation facilities may imply additional costs of risks to arbitrageurs. The findings have both theoretical relevance and practical implications for facilitating cross-border trade in West Africa, especially for trade between landlocked countries like Burkina-Faso and coastal ones like Ghana. |
| Keywords: | Price Transmission, Border, Tomato, Ghana, Burkina-Faso, International Relations/Trade, Marketing, C32, Q11, Q13, Q17, Q18, |
| Date: | 2012–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126173&r=afr |
| By: | Alemu, Zerihun Gudeta |
| Abstract: | This paper has the objective of identifying dominant livelihood strategies in rural South Africa. It differs from previous studies done for South Africa in that it analyses a recent large household survey; classifies livelihood strategies into four broad and eight specific livelihood strategy groups and matches them with welfare strata of rural households; and analyzes socio-economic constraints poor households face to enter into high return livelihood strategies. Two approaches are applied to achieve these objectives -stochastic dominance test and multinomial logistic regression. It finds that households that generate income from wage employment in non-farm and farm activities are better off than other households. Analysis of the socio-economic characteristics of rural households also reveals that age, labour endowment, education, and community characteristics in terms of access to basic infrastructure are some of the barriers that poor households in rural areas face to enter into high-return livelihood strategies. |
| Keywords: | Rural areas, Livelihood strategies, stochastic dominance test, multinomial logistic regression, South Africa, Community/Rural/Urban Development, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:125411&r=afr |
| By: | Paul Collier; Anthony J. Venables |
| Abstract: | Africa is well endowed with potential for hydro and solar power, but its other endowments – shortages of capital, skills, and governance capacity – make most of the green options relatively expensive, while its abundance of hydro-carbons makes fossil fuels relatively cheap. Current power shortages make expansion of power capacity a priority. Africa’s endowments, and the consequent scarcities and relative prices, are not immutable and can be changed to bring opportunity costs in Africa closer to those in the rest of the world. The international community can support by increasing Africa’s supply of the scarce factors of capital, skills, and governance. |
| Keywords: | Africa, climate change, energy, renewable, leapfrog, latecomer |
| JEL: | Q54 Q5 Q40 O55 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:csa:wpaper:2012-06&r=afr |
| By: | Kuikeu, Oscar |
| Abstract: | The main aim of this paper is to know if infrastructures/technology can be consider like a cause of sub Saharan African export’s dependence against raw materials, and, for this purpose, we have assessed, in panel data, the effect of availables infrastructures/technology in cfa farnc zone on the manufactured exports of selected cfa economies. |
| Keywords: | Sub-Saharan Africa; cfa franc; technology; panel data |
| JEL: | F10 C23 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:39658&r=afr |
| By: | Syden Mishi; Asrat Tsegaye |
| Abstract: | The role of banks in transmission of monetary policy in an economy has been a subject of theoretical and empirical investigations. This study attempts to empirically investigate the role played by private commercial banks in South Africa in transmitting the impulses of monetary policy shocks to the rest of the economy. Focus is placed on the bank lending channel of monetary transmission due to the importance of banks in the financial system. Specifically, we examine whether the central bank's monetary policy stance affects banks' lending behaviour. We specify and test the bank lending channel of monetary policy transmission in South Africa by using a panel structural approach that distinguishes banks according to size. The results indicate the prevalence of the bank lending channel in which banks play a pivotal role in the monetary policy transmission in South Africa. Also bank size had proved to appropriately discriminate banks in South Africa according to their external finance cost. |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:295&r=afr |
| By: | Dontsop Nguezet, Paul Martin; Diagne, Aliou; Okoruwa, Victor Olusegun; Ojehomon, Vivian T. |
| Abstract: | The article uses the Average Treatment Effect (ATE) to estimate the population potential adoption rates of New Rice for Africa (NERICA) varieties in Nigeria when awareness of the new varieties and access to their seed are not constrained to farmers. It thus extends previous works in the literature which have focused on estimating potential adoption rates when only awareness of the technology is not a constraint to farmers. The adoption gaps due to lack of awareness and access to seed, and the determinants of adoption are estimated as well. Results show that NERICA adoption rate in Nigeria would have been up to 54% if the whole population were aware and up to 62% if they had access to NERICA variety seed. The actually observed 19% adoption rate implies a population adoption gap of 35% and 43% due to lack of awareness and access to NERICA seed respectively. It is also inferred from these results that when awareness is not a constraint, about 8% of the population will fail to adopt NERICA because of lack of access to its seed. Also famers with secondary education and farmers with access to extension services are more likely to adopt NERICA than farmers without. |
| Keywords: | Awareness, Access to seed, NERICA adoption, Average Treatment Effect, Nigeria, Production Economics, Research and Development/Tech Change/Emerging Technologies, C13, O33, Q12, Q16, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126069&r=afr |
| By: | Arndt, Channing; Benfica, Rui M.S.; Thurlow, James |
| Abstract: | We use a gendered dynamic CGE model to assess the implications of biofuels expansion in a low-income, land-abundant setting. Mozambique is chosen as a representative case. We compare scenarios with different gender employment intensities in producing jatropha feedstock for biodiesel. Under all scenarios, biofuels investments accelerate GDP growth and reduce poverty. However, a stronger trade-off between biofuels and food availability emerges when female labor is used intensively, as women are drawn away from food production. A skills-shortage amongst female workers also limits poverty reduction. Policy simulations indicate that only modest improvements in women’s education and food crop yields are needed to address food security concerns and ensure broader-based benefits from biofuels investments. |
| Keywords: | Biofuels, gender, growth, poverty, land abundance, Africa, Food Security and Poverty, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:125395&r=afr |
| By: | Kirui, Oliver K.; Okello, Julius Juma; Nyikal, Rose Adhiambo |
| Abstract: | Information Communication Technology (ICT) |
| Keywords: | Mobile phones, Money Transfer, M-PESA, Impact, Smallholder Farmers, Kenya, Agribusiness, Agricultural and Food Policy, Food Security and Poverty, Marketing, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:125738&r=afr |
| By: | Sekabira, Haruna; Bonabana, Jackline; Narathius, Asingwire |
| Abstract: | Use of ICTs by smallholder farmers in accessing agricultural market information |
| Keywords: | ICT adoption in markets, determinants and ICT components and small-holder farmers, Agribusiness, Community/Rural/Urban Development, Marketing, Research and Development/Tech Change/Emerging Technologies, G033, |
| Date: | 2012–06–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126112&r=afr |
| By: | Mensah, Edouard R.; Karantininis, Kostas; Adegbidi, Anselme; Okello, Julius Juma |
| Abstract: | Forming and using cooperatives as marketing channel is usually advised to African smallholder farmers for overcoming the constraint of market access. However, limited evidence of cooperative behavior in marketing has been observed. In this paper, we estimate a two-stage model of commitment to cooperatives by cashew nut farmers in Benin, West Africa. In the first stage, we use data on 109 non-members and 168 members and estimate a binary Logit model of farmer’s discrete choice with respect to committing to membership. In the second stage, we use the members’ data to estimate a Tobit model of the proportion of produce delivered to the cooperative, after controlling for the endogeneity of the proportion of presales. Empirical results reveal that the commitment to membership depends on the assessment of prices offered by the marketing channels, the farmer’s preferences for the specific attributes of the channels, the total farm size, and some psycho-sociological factors; the commitment to business depends on prices and transaction costs in the channels. Our findings call cooperatives for improving commitment by considering the subjective and economic reasoning of the farmers, and setting formal contracts between members and their organization. |
| Keywords: | Benin, contracts, cooperatives, market access, prices, transaction costs, Agribusiness, Industrial Organization, Institutional and Behavioral Economics, Marketing, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:125946&r=afr |
| By: | Kirui, Oliver K.; Okello, Julius Juma; Nyikal, Rose Adhiambo |
| Abstract: | Information Communication Technology (ICT) |
| Keywords: | Mobile phones, money transfer M-PESA m-banking services, use, intensity of use/adoption, smallholder farmers, Kenya, Agribusiness, Agricultural and Food Policy, Agricultural Finance, Marketing, Production Economics, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:125739&r=afr |
| By: | Otieno, David Jakinda; Hubbard, Lionel J.; Ruto, Eric |
| Abstract: | The stochastic metafrontier method is applied to estimate technical efficiency levels in beef cattle production in Kenya. Subsequently, a Tobit model is used to assess factors that might influence efficiency. Results show that the average efficiency level is 0.69, suggesting that there is considerable scope to improve beef production in Kenya. Considering the importance of the livestock enterprise to rural livelihoods and its potential role in poverty reduction, there is need for appropriate development strategies for enhanced efficiency. In particular, livestock development policies should focus on provision of technology-related services. For instance, promoting use of controlled cattle crossbreeding methods would enhance productivity gains. Effective institutional support is also necessary in order to improve efficiency, including improved access to market contracts, better farm management skills and off-farm income opportunities. Key words: Beef production; technical efficiency determinants; Kenya. JEL classifications: D24; O32; Q18. |
| Keywords: | Beef production, technical efficiency determinants, Kenya, Agricultural and Food Policy, Livestock Production/Industries, Production Economics, Productivity Analysis, D24, O32, Q18, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:125853&r=afr |
| By: | Ayinde, Opeyemi Eyitayo; Muchie, Mammo; Babatunde, Rapheal O.; Adewumi, Matthew Olaniyi; Ayinde, Kayode; Ibitoye, Olalekan |
| Abstract: | This study analyses the impact of income inequality on agricultural production among sample of farm households in rural and urban areas of Ekiti-state, Nigeria. The study used primary and secondary data. Descriptive analysis, Gini coefficient and Regression analysis were used to analyzed the data. The results showed the socio-economic characteristics of farm households in both rural and urban areas. The results also indicated that income inequality is higher in urban than in the rural areas and that income level, farm size and household size are the factors that contribute to inequality in both rural and urban areas. The study however recommends that production technology should be improved, infrastructural facilities should be provided, access to credit and land should be made easier and that large family size should be discouraged to facilitate a more equitable distribution of income and increase agricultural production. |
| Keywords: | Income Inequality, Agricultural Production, Rural, Urban and Nigeria, Agricultural and Food Policy, Community/Rural/Urban Development, Production Economics, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126228&r=afr |
| By: | Jaleta, Moti; Kassie, Menale; Shiferaw, Bekele |
| Abstract: | Crop residue use for soil mulch and animal feed are the two major competing purposes and the basic source of fundamental challenge in conservation agriculture (CA) where residue retention on farm plots is one of the three CA principles. Using survey data from Kenya and applying bivariate ordered Probit and bivariate Tobit models, this paper analyzes the tradeoffs in maize residue use as soil mulch and livestock feed in mixed farming systems. Results show that both the proportion and quantity of maize residue used for soil mulch and livestock feed are strongly affected by agroecology and livestock holding. Farmer knowledge about alternative use of crop residues and farmer perception of soil erosion risk (proxied through plot steepness) positively affect the amount of residue farmers retain on maize plots. Results imply that crop residue use as soil mulch in conservation agriculture is challenged in mixed crop-livestock systems and particularly by smallholder farmers owning cross-bred and exotic dairy animals. In general, reducing the demand for crop residues as livestock feed through the introduction of alternative feed sources, better extension services on the use of crop residue as soil mulch and designing agroecology specific strategies and interventions could facilitate the adoption and expansion of CA-based practices in mixed crop-livestock systems. |
| Keywords: | Maize residue, Mixed farming system, Conservation agriculture, Bivariate model, Kenya, Agricultural and Food Policy, Crop Production/Industries, Environmental Economics and Policy, Livestock Production/Industries, Production Economics, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126282&r=afr |
| By: | Jean-Francois, Maystadt |
| Abstract: | The role of migration in reducing poverty in developing countries has been investigated mainly from the perspective of migrants and their relatives. This paper exploits the time and spatial variations in the way households in the region of Kagera (Tanzania) traced between 1991 and 2004 have been affected by massive refugee inflows to assess how migration may affect poverty in the hosting communities. Large population inflows from Burundi and Rwanda have improved the welfare of the hosting population, particularly for the poor. Despite the process of structural transformation observed in the refugee-hosting economy, such pro-poor development is mainly explained by improved agricultural labor productivity and income diversification among the poor. |
| Keywords: | poverty, refugees, migration, structural transformation, Tanzania, Food Security and Poverty, International Development, Labor and Human Capital, J21, J61, O15, O1, |
| Date: | 2012–07–26 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126259&r=afr |
| By: | Wainaina, Priscilla; Okello, Julius Juma; Nzuma, Jonathan M. |
| Abstract: | Contract farming is a form of vertical coordination largely aimed at correcting the market failure associated with spot markets that arise due to imperfect information. However the impact of contract farming on the welfare of smallholder farmers in Kenya is not well understood. While some authors have argued that contact farming improves access to ready markets by smallholder farmers, other studies have suggested that contract farming lowers the incomes of smallholder farmers because the contractors wield greater market power over the farmers. Consequently, it is seen as a blessing by some and a necessary evil by others. This study uses a propensity score matching technique to shed light on the impact of contract farming on smallholder farmers. The study also examines the conditioners of participation in contract farming. It uses data collected from 180 smallholder poultry farmers stratified by participation in contract production. The study finds that, on average, contracted farmers earned more net revenue per bird compared to the independent farmers, by approximately 27 percent, and as such participating in contract farming could improve the welfare of these small holder poultry farmers. This finding suggests that getting smallholder commercial poultry farmers to participate in contract farming can help improve their welfare through increasing the net revenues from these birds and thereof incomes. |
| Keywords: | Contract farming, smallholder farmers, impact, propensity score matching, poultry production, Kenya., Agribusiness, Institutional and Behavioral Economics, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126196&r=afr |
| By: | Kirsten, Johann F.; Vermeulen, Hester; Van Zyl, Karlien; Du Randt, Gerrie; Du Plessis, H.; Weissnar, Tessa |
| Abstract: | The difference between hypothetical and real values when evaluating consumers’ preferences (termed ‘hypothetical bias’) has received significant attention in scientific literature, as the outcome of this bias is often an overestimation of willingness to pay (WTP) values. This is the main focus of this paper as we unpack South African consumers’ perceptions and preferences for an origin based meat product through a set of different methodologies. These different approaches (sensory analysis, perception analysis, conjoint analysis, experimental auction and an in-store experiment) are all employed to illustrate the ‘hypothetical bias’ but also to establish beyond any doubt the market potential for a specific origin based meat product and also to test the consumers’ willingness to pay a premium, and the range of the premium obtained from different methodologies. This paper presents the results of a number of studies applying different methods related to the same product but with different groups of consumers in different locations. The different results suggest that there is sufficient evidence that suggest that the regional identity of the product is important. It is further also evident that the various willingness to pay estimates presented different results. It is however clear that the stated preference methods confirm the hypothesis that consumers recognise the reputation of the product and will be willing to pay premium. This conclusion is strengthened by the positive results from the stated preference methods (the experimental auction and in-store experiment). Together these results present a strong case for the marketing potential of origin based mutton / lamb which could sell at a price premium similar or slightly higher than comparable existing luxury and niche lamb brands on the South African market. |
| Keywords: | Meat of Origin, willingness to pay, consumer perceptions, experimental economics, Agribusiness, Agricultural and Food Policy, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Marketing, Agriucltural Marketing, Food Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:125764&r=afr |
| By: | Bogale, Ayalneh; Genene, Wubshet |
| Abstract: | The study seeks to analyze impact of livestock credit and simulate the effect of change in covariates of poverty on households’ consumption expenditure. Data was generated through in person interview of sampled rural households in the Ethiopian Productive Safety Net area. Descriptive statistics, poverty indices, multiple regression, and simulation techniques were applied. The results identified covariates with statistically significant coefficients. The specific contribution in increasing consumption expenditure and reduction in poverty indices as a result of marginal change in covariates was examined. These specific factors need to be considered in designing poverty reduction strategies depending on magnitude of their contribution. |
| Keywords: | FGT poverty indices, Household Expenditure, Productive Safety Net, Simulation, Agricultural and Food Policy, Consumer/Household Economics, Food Security and Poverty, |
| Date: | 2012–08–20 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126157&r=afr |
| By: | Ivohasina F. Razafimahefa |
| Abstract: | This paper analyzes the exchange rate pass-through to domestic prices and its determinants in sub-Saharan African countries. It finds that the pass-through is incomplete. The pass-through is larger following a depreciation than after an appreciation of the local currency. The average elasticity is estimated at about 0.4. It is lower in countries with more flexible exchange rate regimes and in countries with a higher income. A low inflation environment, a prudent monetary policy, and a sustainable fiscal policy are associated with a lower pass-through. The degree of pass-through has declined in the SSA region since the mid-1990s following marked improvements in macroeconomic and political environments. |
| Date: | 2012–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:12/141&r=afr |
| By: | Xavier Debrun; Tamon Asonuma; Paul R. Masson |
| Abstract: | This paper proposes a quantitative assessment of the welfare effects arising from the Common Monetary Area (CMA) and an array of broader grouping among Southern African Development Community (SADC) countries. Model simulations suggest that (i) participating in the CMA benefits all members; (ii) joining the CMA individually is beneficial for all SADC members except Angola, Mauritius and Tanzania; (iii) creating a symmetric CMA-wide monetary union with a regional central bank carries some costs in terms of foregone anti-inflationary credibility; and (iv) SADC-wide symmetric monetary union continues to be beneficial for all except Mauritius, although the gains for existing CMA members are likely to be limited. |
| Keywords: | Central banks , Cross country analysis , Economic indicators , Monetary unions , Southern African Development Community , Welfare , |
| Date: | 2012–05–24 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:12/136&r=afr |
| By: | Revoredo-Giha, Cesar |
| Keywords: | Malawi dairy supply chain, development economics, industrial organisation, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Consumer/Household Economics, Demand and Price Analysis, Farm Management, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Industrial Organization, International Development, International Relations/Trade, Marketing, Political Economy, Productivity Analysis, O, L, |
| Date: | 2012–08–19 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:125274&r=afr |
| By: | Christopher S Adam; Pantaleo Kessy; Camillus Kombe; Stephen A O’Connell |
| Abstract: | This paper is the outcome of research collaboration between staff of the Directorate of Economic Research and Policy at the Bank of Tanzania and the International Growth Centre. The views expressed in this paper are solely those of the authors and do not necessarily reflect the official views of the Bank of Tanzania or its management. We are grateful to the research departments of the five national central banks in the East African Community (EAC) for their cooperation, to Paul Masson and participants at the Extraordinary Meeting of the Monetary Affairs Committee (MAC) of the EAC in Bujumbura (November 2011) and the Extraordinary Meeting of the Economic Affairs Sub-Committee of the MAC in Nairobi (March 2012) for their comments, and to Ishaan Irani, Lucie Moore, and Richard Peck for research assistance. All errors are our own. |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:csa:wpaper:2012-07&r=afr |
| By: | Benfica, Rui M.S. |
| Abstract: | This analysis uses measures of Compensating Variation (CV) and Net Benefit Ratios (NBR) to assess the short-run effects of higher prices on different income groups in rural and urban areas of Malawi. Compensating Variation analysis indicates that urban households, particularly the poorest are the most severely affected both in the aggregate consumption and also in terms of food consumption. In rural areas, relatively better off households are more negatively affected by overall price increases, but the poorest are the group that suffers the most with food price shocks. A fifty percent supply response of agricultural production would result in significant positive effects on rural household welfare. A significantly larger response would be required in maize production to yield significant benefits among households. Results are translated into tangible policy and programmatic recommendations to inform the design of interventions aimed at mitigating those effects and promoting economic growth and poverty reduction. This analysis suggest that policies should be oriented towards facilitating a supply response by households resulting in a significant increase in maize, other staple food and non-food production, supporting household livelihoods diversification, while putting in place programs to assist the most vulnerable groups. |
| Keywords: | Compensating variation, distributional impacts, Malawi, net benefit ratio, Agricultural and Food Policy, Food Security and Poverty, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:125394&r=afr |
| By: | Gebremedhin, Berhanu; Hoekstra, Dirk; Tegegne, Azage |
| Abstract: | The literature on commercial transformation of smallholders makes little distinction between market orientation and market participation. This paper analyzes the determinants of market orientation and market participation in Ethiopia separately and examines if market orientation translates into market participation. Results show that subsistence requirements, market access, and production factors affect market orientation, while market access and volume of production affect market participation. Results also show that market orientation translates strongly into market participation. The key implication of this study is that interventions aimed at promoting commercial transformation of subsistence agriculture should follow two-pronged approach: improving market orientation of smallholders at production level, and facilitation of market entry and participation of households in output markets. Focusing on either may not be as effective in achieving the transformation. Keywords: commercialization, smallholders, market orientation, market participation. |
| Keywords: | commercialization, smallholders, market orientation, market participation, Agribusiness, Marketing, C21, C24, Q12, Q13, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:125847&r=afr |
| By: | Uregia, Nigussie Tefera; Desta, Mulat Demeke; Rashid, Shahidur |
| Abstract: | Ethiopia has experienced high food prices, especially since 2005. This paper examines the welfare impacts of rising food prices in rural Ethiopia using Quadratic Almost Ideal Demand System (QUAIDS) approach controlled for expenditure endogeniety and zero consumption expenditure. The elasticity coefficients from QUAIDS are used to estimate Compensated Variations (CV), which explicitly accounts for profit function and substitution effects. The study uses Ethiopia Rural Household Survey (ERHS) panel data, encompassing both low and high price periods. Prices of all food and agricultural products increased during the entire survey period of 1994 to 2009 but the increases were much higher in recent years, 2004 – 2009, compared to the earlier period of 1994 - 2004. The results have shown that the price hikes in recent years increased welfare gain of rural households by about 10.5% on aggregate, as compared to less than 1% for the reference period (1994 - 2004). The welfare gains further improved to 18% for the high price period and 7.2% for the low price period with substitution effects. It could be argued that the welfare gains at aggregate level is not equally distributed among rural households as 37 to 46% of the sample households were net-cereal buyers (major staple crops) during the survey period. However, the analysis revealed that high food and agricultural prices benefit not only net-cereal sellers but also autarkic and net-cereal buying families. Autarkic households and net-cereal buyers apparently seem to have benefited from high prices of commodities such as pluses, fruits & vegetables, live animals and animal products. They also appear to have gained from increased off-farm income as average income from wage and transfer has indeed increased in 2009. Only very poor families with limited farm and non-farm income need to be supported with safety net programs (both input and consumption support). In the long-run, high agricultural prices would encourage net-sellers to expand production, leading to lower food prices for net-buyers. More importantly, many current net buyers could become net-sellers if grain prices are stable and remunerative for producers. |
| Keywords: | welfare, rising food prices, panel data, rural Ethiopia, Agricultural and Food Policy, Consumer/Household Economics, Demand and Price Analysis, Food Security and Poverty, Institutional and Behavioral Economics, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126261&r=afr |
| By: | Klomp, Jeroen; Bulte, Erwin H. |
| Abstract: | We use cross-country data to explore whether temperature and rainfall shocks trigger violent conflict, or not. We include a wide range of country and time samples, and explore whether the impact of weather shocks is conditional on income or political regimes. Our overall conclusion is sobering. Notwithstanding the attention this topic has attracted from the media and policy makers, we find little robust evidence linking weather shocks to the onset of conflict. |
| Keywords: | climate change, temperature, rainfall, violence, Africa, resource scarcity., Environmental Economics and Policy, Food Security and Poverty, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:125861&r=afr |
| By: | Barungi, M.; Ng’ong’ola, D.H.; Edriss, A.; Mugisha, Joseph Y.T.; Waithaka, Michael M.; Tukahirwa, J. |
| Keywords: | Agricultural and Food Policy, Land Economics/Use, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:125743&r=afr |
| By: | Cécile Couharde; Issiaka Coulibaly; David Guerreiro; Valérie Mignon |
| Abstract: | This paper aims at explaining why the CFA countries have successfully maintained a currency union for several decades, despite failing to meet many of optimum currency area criteria. We suggest that the CFA zone, while not optimal, has been at least sustainable. We test this sustainability hypothesis by relying on the Behavioral Equilibrium Exchange Rate (BEER) approach. In particular, we assess and compare the convergence process of real exchange rates towards equilibrium for the CFA zone countries and a sample of other sub-Saharan African (SSA) countries. Our findings evidence that internal and external balances have been fostered and adjustments facilitated in the CFA zone as a whole?compared to other SSA countries?as well as in each of its ember countries. |
| Keywords: | Equilibrium exchange rates, CFA zone, Optimum Currency Areas, currency union sustainability |
| JEL: | F31 F33 C23 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2012-13&r=afr |
| By: | Jolejole-Foreman, Maria Christina; Baylis, Kathy; Lipper, Leslie |
| Keywords: | land degradation, instrumental variables, spatial patterns of land degradation, Environmental Economics and Policy, International Development, Land Economics/Use, Production Economics, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126251&r=afr |
| By: | Kessides, Ioannis N.; Benjamin, Nancy C. |
| Abstract: | The East African Community has long recognized that regional economic integration can yield significant welfare gains to its member states. To that end, the community has been making steady progress towards the removal of tariffs and quantitative restrictions to trade. Moreover, in recent years, there has been an increasing recognition that: (a) even greater welfare gains could be realized through deeper forms of regional integration which entail harmonization of legal, regulatory and institutional frameworks; and (b) reforms that reduce cross-border transaction costs and improve the performance of"backbone"infrastructure services are arguably even more important for the creation of an open, unified regional economic space than trade policy reforms narrowly defined. Disparities of regulatory treatment across borders can introduce distortions that hinder both cross-border trade and the aggregate flows of investment on a regional basis. Regulatory harmonization and infrastructure regionalization could make a significant contribution to the region's economic development by promoting a more efficient utilization of its human and physical resources, enhancing connectivity, reducing the costs of trade, and facilitating the integration of the continent with the global economy. |
| Keywords: | Transport Economics Policy&Planning,Regional Economic Development,Trade and Regional Integration,Emerging Markets,Economic Theory&Research |
| Date: | 2012–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6113&r=afr |
| By: | Fadiga, Mohamadou L.; Okike, Iheanacho; Bett, Bernard |
| Abstract: | The risk of spread of HPAI in Nigeria was derived by using a compartmental model to outline endemic and burn-out scenarios. Two paths, low and high mortality risks, were associated to each of the scenarios. The estimated risk parameters were then used to stochastically simulate the trajectory of the disease; without intervention and with an intervention. The intervention costs the country US$ 41 million obtained through a World Bank IDA loan of US$ 50million yearly disbursed over the 2006-2010 period. The key output variables (net social welfare gain – with incremental net benefits as proxy, disease cost, and benefit cost ratio) were estimated for each randomly drawn risk parameter. On average, the results show that such an intervention would make economic sense under the endemic scenario with high mortality. The discounted costs (12% discount rate) of the disease without intervention would have amounted to US$ 145 million in total over the 2006-2010 period. The model indicates that the intervention could possibly have generated cost savings amounting to US$ 63.7 million, incremental net benefit of US$22.2 million, and a benefit cost ratio at 1.75 over the five-year period considered. |
| Keywords: | Avian Influenza, Risk, Expected Social Welfare, Disease Costs, Incremental Benefit, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:125943&r=afr |
| By: | Mujawamariya, Gaudiose; Burger, Kees; D’Haese, Marijke |
| Abstract: | Farmers face monopsonist/oligopsonist structures in agricultural or forest products markets because of the limited choice of traders/buyers. As a consequence, these farmers and traders alike, in successive transactions along the supply chain, may get lower prices in selling their products. This leads to a problem of double (or even multiple) marginalisation. We investigate oligopsonist tendencies in the trade of gum arabic, a non-timber forest product which is widely used as an additive in food and non-food industries. We compute traders’ shares and a corresponding Herfindahl index in primary, transport and wholesale markets of gum arabic in Senegal to analyse the market concentration; through a gllamm procedure we analyse determinants of these market shares and finally by a weighted least square regression, we analyse determinants of marketing margins of individual traders. The computed Herfindahl index was found too low to have any influence on margins and hence oligopsonist powers could not be confirmed. Instead traders’ margins depend on costs, risk and uncertainty that they face. Consequently, traders were not found exploitative; their power is derived from access to capital and market characteristics. |
| Keywords: | oligopsony, double marginalisation, Herfindahl index, market accession, market exit, risk, marketing margins., Agricultural and Food Policy, Industrial Organization, Marketing, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126236&r=afr |
| By: | Bastiaensen, Johan; Merlet, Pierre |
| Abstract: | A key issue in the context of increasing large-scale land acquisitions in developing countries is how poor populations can prevent their land rights being encroached upon by more powerful actors. To date, the majority of policy recommendations have been directed towards the legal recognition and formalization of land rights in order to safeguard local and historical land rights holders, as well as towards the design and implementation of ‘voluntary’ guidelines or codes of conduct which should regulate large-scale investments in land, in order to contribute to positive development outcomes. We argue, however, that these types of recommendations tend to depoliticize the debate surrounding access to land and natural resources. This paper therefore aims to reintroduce a political dimension into the analysis, by proposing a framework based on the socio-institutional definition of land rights consistent with the legal pluralist approach. It acknowledges a multiplicity of land rights and rights holders, governed by the existence of several superimposed normative orders and social fields. It also implies that state and non-state normative orders interact to determine land management practices and, as a result, also the actual ‘rules in use’ that are followed and enforced locally. We demonstrate the analytical potential of this theoretical framework using case studies from Ghana and Madagascar, two countries with different legal traditions and distinct levels of recognition of non-state tenure systems. Our tentative analysis reveals that what is fundamentally at stake are power relations and social struggles between actors in a variety of social fields. The key is therefore to strengthen the bargaining capacity of weaker actors within certain political arenas when it comes to land. Their capacity is not unrelated to the nature of formal national and international legal orders, since these co-shape and affect actors’ bargaining position, but we should not expect a one-way relationship between formal rules and the effective enforcement of the rights of the poor. Related issues that will also play a critical role in the analysis are broader discursive struggles regarding the concept of ‘idle land’; the role of small-scale family production versus large-scale entrepreneurial production in agricultural development; and the requirements of social and environmental sustainability. |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:iob:dpaper:2012002&r=afr |
| By: | Kallas, Zein; Baba, Yasmina; Rabell, Maria Cristina |
| Abstract: | This paper explores farmer-specific cultural, social and economic objectives within the extensive rice system in the Kolda region (south of Senegal). We classify and characterize farmers according to the relative importance of their multifunctional goals. The empirical analysis uses farm-level data collected through a face-to-face questionnaire to a sample of rice farmers. The Analytical Hierarchy Process (AHP) is used to measure farmers’ primary and secondary objectives importance in planning their activities, and Cluster Analysis (CA) to classify and characterize farmers according to their priorities. Results suggest that within the “economic” role, the most important goals are “maximization of total farm income” followed by “improving rice quality”. Farmers are willing to “minimize fertilizers use”, both to reduce cost and to preserve environment. They recognize their potential role in “minimizing illegal immigration”. Results can be useful in guiding policy makers by considering farmers’ priorities at local level |
| Keywords: | Farmers’objectives, Analytical Hierarchy Process(AHP), Agricultural multifunctionality, Rice, Senegal, Agricultural and Food Policy, Community/Rural/Urban Development, Farm Management, Q18, Q19, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:125980&r=afr |
| By: | Saravia-Matus, Silvia L.; Acs, Szvetlana; Gomez y Paloma, Sergio |
| Keywords: | FARM NET INCOME, SIERRA LEONE, VIABILITY, Agricultural and Food Policy, Agricultural Finance, Community/Rural/Urban Development, O1 - Economic Development, Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets, Q18 - Agricultural Policy, Food Policy, |
| Date: | 2012–08–20 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:125437&r=afr |
| By: | Gajigo, Ousman; Schwab, Benjamin |
| Abstract: | We analyze the consequences of seasonal variation in maternal consumption on child health using two nationally representative Gambian household surveys. Seasonal fluctuation in consumption stems from difficulties borrowing when incomes are low during the rainy season and saving when they peak after harvest. The resulting fluctuations in maternal nutritional intake can affect birth outcomes and lactational performance. Using mother fixed effects to isolate the effect of birth season, we find that child health—measured by weight-for-age and height-for-age—varies significantly with birth timing. Children in farm households born during dry seasons (February-June) fare considerably worse than siblings born in other seasons. |
| Keywords: | Child, Maternal Health, Consumption, Agriculture, Seasonal, Agricultural and Food Policy, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, D13, I12, I15, Q12, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:125788&r=afr |
| By: | Massimiliano Calì |
| Abstract: | The process of economic integration over the past two decades has been accompanied by an expanding income wedge between skilled and unskilled workers in many developing countries. This was also the case for Ugandan wage employees during the 1990s, which was a period of abrupt trade opening and market reforms. This is a surprising result for an unskilled labour abundant country like Uganda in light of a standard Heckscher-Ohlin (H-O) framework. But was the trade opening responsible for the increase in wage premia? By using a novel district-level analysis, I find that in fact increased trade reduced the returns to schooling in line with the H-O predictions. On the other hand, the intensification of domestic trade across districts during the period was associated with higher returns in those districts relatively endowed with skilled employees. This effect appears to be responsible for at least some of the rising returns to schooling among wage employees in Uganda. |
| Keywords: | Returns to education, wage inequality, Uganda, trade, market reforms |
| JEL: | F10 F14 F16 O12 O15 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0114&r=afr |