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on Agricultural Economics |
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Issue of 2014‒04‒05
27 papers chosen by |
| By: | Benin, Samuel |
| Abstract: | This paper uses case studies of Bangladesh, Ghana, Rwanda, and Senegal to assess the degree to which the L’Aquila Food Security Initiative (AFSI) has been implemented within the framework of managing for development results (MfDR) and to evaluate progress in various outcomes, including economic governance, agricultural growth, poverty, and food and nutrition security (FNS). |
| Keywords: | Agricultural development, Rural development, Development aid, food security, Agriculture, L’Aquila Food Security Initiative, aid effectiveness, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1329&r=agr |
| By: | Benin, Samuel |
| Abstract: | Use of mechanization in African agriculture has returned strongly to the development agenda, particularly following the recent high food prices crisis. Many developing country governments—including Ghana, the case study of this paper—have resumed support for agricultural mechanization, typically in the form of providing subsidies for tractor purchase and establishment of private-sector-run agricultural mechanization service centers (AMSECs). The aim of this paper is to assess the impact of Ghana’s AMSEC program on various outcomes, using data from household surveys that were conducted with 270 farmers, some of them located in areas with the AMSEC program (treatment) and others located in areas without the program (control). |
| Keywords: | mechanization, productivity, Agricultural development, Agricultural policies, propensity score matching, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1330&r=agr |
| By: | Turek Rahoveanu, Adrian; Turek Rahoveanu, Maria Magdalena |
| Abstract: | The performance of production structures in agriculture is determined by a complex of factors, the most important are: the natural potential of agricultural holdings, financial resources necessary to purchase inputs, ensuring balance in the allocation of factors of production, technical and technological potential, the existing workforce and the readiness of the farm manager. Based on these considerations we want in this paper to analyze the aspects defining application of performance management in order to develop sustainable production structures, increase competitiveness of farms, farmers' income stabilization and Romanian rural development. |
| Keywords: | production structure, management, efficiency, competitiveness |
| JEL: | Q1 Q12 |
| Date: | 2013–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55003&r=agr |
| By: | Birthal, Pratap Singh; Joshi, Pramod Kumar; Negi, Digvijay S.; Agarwal, Shaily |
| Abstract: | Indian agriculture was transforming from a cereal-based production system toward high-value crops (HVC) during the 1990s. However, food security concerns resurfaced during the first decade of the 21st century, and the policy environment tilted in favor of cereal-based production systems, especially rice and wheat. This paper revisits an earlier study to evaluate how the policy shift influences the patterns and the sources of agricultural growth in India and assesses their implications for regional priorities for higher, more sustainable, and more inclusive agricultural growth. |
| Keywords: | Agricultural growth, Agricultural policies, Smallholders, high value agricultural products, High value agriculture, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1325&r=agr |
| By: | Tudor, Valentina; Macau, Ioana; Butu, Marian |
| Abstract: | The countryside is an available and eligible resource, with an unexploited growth potential for the exploitation of which is necessary to converge efforts of policy makers both at national level and in the Member States regarding the design, implementation, monitoring and evaluation of agricultural policies. The central elements of the policy - farms and farmers - will be central elements of the Common Agricultural Policy for the period 2014-2020 |
| Keywords: | local agriculture, farmers, traditional products, consumers, consultancy. |
| JEL: | Q1 |
| Date: | 2013–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55005&r=agr |
| By: | Dwivedy, Nidhi |
| Abstract: | The present work has analyzed the existing information about the role of female labour in farming sector in the rural area of Sikkim in North- Eastern India, which covers broadly- gender participation/decision making in crop production and animal husbandry & related activities, possession & gender-wise ownership of domestic animals/land and the extent of accessibility to production resources of sample female farmers. Social science research in the state of Sikkim is inadequate despite several incentives provided by the state government. Nowadays, with voluminous amount of public expenditure on women empowerment schemes, we cannot ignore this issue thus making it unavoidable to empower them also with the intention to fully utilize their caliber in this field. Keeping this in mind, data was collected from 230 female farmers through interviews using a pre-designed schedule from 24 circles from all the four districts of Sikkim State. Based on their subjective judgments, female farmer’s role in farming has been measured and analyzed using the Statistical Package for the Social Science (SPSS). Some descriptive statistics, such as percentage as well as one sample t-test of inferential statistics is used to interpret the data.Results pertaining to these findings have been discussed in this PPT. |
| Keywords: | Gender participation, Decision making, Access, Production Resources,Production Inputs, Farming Females, Crop production, Animal Husbandry, Gender-Wise Farm Land Status, Cultivators, Agriculture Labourers, Traditional Knowledge, Integrated Farming, Sikkim. |
| JEL: | J71 |
| Date: | 2014–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:54872&r=agr |
| By: | Headey, Derek D. |
| Abstract: | Standard microeconomic methods consistently suggest that, in the short run, higher food prices increase poverty in developing countries. In contrast, macroeconomic models that allow for an agricultural supply response and consequent wage adjustments suggest that the poor ultimately benefit from higher food prices. In this paper we use international data to systematically test the relationship between changes in domestic food prices and changes in poverty. We find robust evidence that in the long run (one to five years) higher food prices reduce poverty and inequality. The magnitudes of these effects vary across specifications and are not precisely estimated, but they are large enough to suggest that the recent increase in global food prices has significantly accelerated the rate of global poverty reduction. |
| Keywords: | Food prices, Poverty, income, poverty alleviation, Food crisis, inequality, income growth, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1331&r=agr |
| By: | Mapila, Mariam A. T. J. |
| Abstract: | Evidence exists which shows growing disillusionment with and disinterest in agricultural-based livelihoods among the youth in Africa south of the Sahara. This disillusionment raises concerns for the future of agriculture for the developing world as it can lead to higher rural urban migration, unemployment and lowered agricultural productivity. The engagement of youth in agricultural policy formulation processes is seen as one avenue for motivating youth engagement in agriculture. This research seeks to develop a contextual understanding of the level of engagement of youth in agriculture thus providing evidence which can be used to stimulate youth involvement in the sector. Using a mixed-methods approach, this study analyzes the determinants of the engagement by southern African youth in agricultural policy processes using Malawi as a case study. |
| Keywords: | Sustainable livelihoods, rural youth, youth, rural areas, youth participation, factor analytic approach, policy process, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1335&r=agr |
| By: | Quisumbing, Agnes R.; Rubin, Deborah; Manfre, Cristina; Waithanji, Elizabeth; van den Bold, Mara; Olney, Deanna K.; Meinzen-Dick, Ruth Suseela |
| Abstract: | This paper explores initial findings from four case studies in the Gender, Agriculture, and Assets Project on changes in gender relations in different agricultural interventions. It documents the adaptive measures projects are taking to encourage gender-equitable value chain projects. Findings suggest that the dairy and horticulture value chain cases have successfully increased the stock of both men’s and women’s tangible assets and those assets they own jointly. |
| Keywords: | Gender, Women, assets, Agricultural development, evaluation, food security, Smallholders, Value chain, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1321&r=agr |
| By: | Ward, Patrick S.; Singh, Vartika |
| Abstract: | Advances in agricultural development have largely been a direct result of increased usage of new technologies. Among other important factors, farmers’ perceptions of risks associated with the new technology as well as their ability or willingness to take risks greatly influences their adoption decisions. In this paper we conduct a series of field experiments in rural India in order to measure preferences related to risk, potential loss, and ambiguity. Disaggregating by gender, we find that on average women are significantly more risk averse and loss averse than men, though the higher average risk aversion arises due to a greater share of women who are extremely risk averse. |
| Keywords: | Technology adoption, rural population, Agricultural technology, uncertainty, propect theory, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1324&r=agr |
| By: | Krishna, Vijesh V.; Spielman, David J.; Veettil, Prakashan C.; Ghimire, Subash |
| Abstract: | This paper addresses the challenge of increasing the rate of varietal turnover to prevent depreciation of improved cultivars over time. It examines the supply of and demand for improved cultivars of wheat in India to illustrate this challenge in a unique manner, combining national-level data on breeder seed production with primary data on cultivar adoption. The analyses show that the rate of varietal turnover for wheat has slowed in India from an average of 9-10 years a decade ago to 13-14 years in 2010. By focusing on a sample of farmers and villages in Haryana, where seed and information networks are relatively well developed, the study finds that wheat farmers still prefer cultivars that were released 9-10 years ago. |
| Keywords: | Research, Technology transfer, Wheats, Agricultural research, Hybrids, Seeds, cultivar improvement, seed systems, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1336&r=agr |
| By: | Johnson, Michael E.; Benin, Samuel; You, Liangzhi; Diao, Xinshen; Chilonda, Pius; Kennedy, Adam |
| Abstract: | An in-depth quantitative analysis is undertaken in this paper to assist the Southern African Development Community (SADC) Secretariat, member countries, and development partners in setting future regional investment priorities for agricultural research and development in the SADC region. A primary goal of this work was to identify a range of agricultural research priorities for achieving sector productivity and overall economic growth in southern Africa, at both the country and regional levels. This is accomplished by adopting an integrated modeling framework that combines a disaggregated spatial analytical model with an economywide multimarket model developed specifically for the region. |
| Keywords: | Agricultural growth, Markets, Agricultural research, yields, Simulation models, Technology transfer, Yield gap, multimarket model, spatial analysis, technology spillovers, staple crops, priority setting, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1318&r=agr |
| By: | Mihai, Cornelia; Toderita, Alexandra |
| Abstract: | Recent evidence shows that that over 60% of private investment contracts have been canceled due to the lack of private co-financing. Basically, a large part of the EU funds for agricultural development cannot be accessed due to the current poor access to finance of (small and medium-size) farmers. Several factors, such as guarantees of up to 150% of the loan value, low profitability, or high default risk that hinder the sector’s access to the credit market, should be mitigated by state intervention. Such a measure can be included in the 2014-2020 RDP, consistent with the European Commission’s recommendation to include financial instruments for supporting access to finance for farmers and agricultural associations. The analysis presented in this paper builds on the solutions proposed in a previous CRPE report focusing on microcredit, based on the existing mechanisms of the state. Firstly, it aims to support OUG 43/2013 by establishing: (1) a fund for middle-size farms for investment of up to 300,000 Euro, significantly lower than the previous ceiling of 3 mil. Euro and (2) a microcredit fund (max. 25,000 Euro), both measures coupled with an interest rate subsidy facility. Ultimately, the aim is to reduce the interest rate that farmers are facing by at least 4 percentage points. Secondly, we propose extending and improving the instruments designed for bearing part of the risk burden, through (1) a state aid scheme for reducing the cost of the guarantees for projects undertaken by young farmers and start-ups, and (2) providing 100% guarantee for young farmers that access RDP funds for agricultural investment. |
| Keywords: | agriculture, credit, guarantee, financial instrument, interest rate subsidy |
| JEL: | Q0 Q16 |
| Date: | 2013–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55008&r=agr |
| By: | Kabunga, Nassul S. |
| Abstract: | The introduction and dissemination of improved dairy cow breeds in Uganda is arguably the most significant step taken to develop a modern and commercial dairy industry in the country over the last two decades. This study uses a nationally representative sample of Ugandan households to rigorously examine the impact of adoption of improved dairy cow breeds on enterprise-, household-, and individual child-level nutrition outcomes. We find that adopting improved dairy cows significantly increases milk productivity, milk commercialization, and food expenditure. |
| Keywords: | Technology adoption, productivity, child nutrition, Poverty, Impact assessment, poverty alleviation, propensity score matching, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1328&r=agr |
| By: | Savath, Vivien; Fletschner, Diana; Peterman, Amber; Santos, Florence |
| Abstract: | Using data collected from the evaluation of two government land titling interventions in the Indian state of Odisha, this paper examines key relationships linking land and livelihood strategies. The investigation is one of the first to explicitly use the Gender, Agriculture, and Assets Project framework to gain additional insights on how gender–asset dynamics relate to household livelihood strategies. |
| Keywords: | Land, Livelihoods, Gender, assets, Ownership, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1323&r=agr |
| By: | de Brauw, Alan |
| Abstract: | This paper studies women’s empowerment in northern Mozambique as it relates to agriculture, considering in particular the factors that lead to women’s managing the plots that they nominally control. Women control about 30 percent of the plots in the data but manage only about 70 percent of those plots. Using a unique panel dataset, the study finds that women are more likely to manage plots when households have historically had access to off-farm labor, typically completed by men. |
| Keywords: | Gender, Women, Agriculture, Food production, crop choice, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1333&r=agr |
| By: | Plevin, Richard; Holly Gibbs; James Duffy; Sahoko Yui; Sonia Yeh |
| Abstract: | The purpose of the agro-ecological zone emission factor model (AEZ-EF) is to estimate the total CO2-equivalent emissions from land use changes, e.g., from an analysis of biofuels impacts or policy analyses such as estimating the effect of changes in agricultural productivity on emissions from land use. The model combines matrices of carbon fluxes (Mg CO2/ha/y) with matrices of changes in land use (ha) according to land-use category as projected by GTAP or similar AEZ-oriented models. As published, AEZ-EF aggregates the carbon flows to the same 19 regions and 18 AEZs used by GTAP-BIO, the version of GTAP currently used by Purdue University researchers for modeling biofuel-induced ("indirect") land-use change (ILUC) (e.g., Tyner, Taheripour et al. 2010). The AEZ-EF model, however, is designed to work with an arbitrary number of regions, as described in the accompanying report. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:gta:techpp:4346&r=agr |
| By: | Robinson, Sherman; Levy, Stephanie |
| Abstract: | While previous research on cash transfer programs has primarily concentrated on micro-economic effects, this paper analyzes general equilibrium effects of social transfer policies using a computable general equilibrium model applied to Cambodia. It identifies the potential impact of these transfers on the local economy, looking particularly at prices and market responses to an increase in demand through production and trade. Our findings show that, for goods and services for which domestic supply is not elastic enough to respond to a significant rise in demand, prices will increase, affecting the value of transfers on poverty reduction. |
| Keywords: | Agricultural policies, Agricultural development, Impact assessment, agricultural development strategies, social protection, Computable General Equilibrium (CGE) model, impact evaluation, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1334&r=agr |
| By: | Davis, Peter; Ali, Snigdha |
| Abstract: | This paper reports on findings from 30 focus group discussions and 30 key informant interviews conducted in 12 districts of Bangladesh in May 2012. The discussions and interviews draw attention to perceptions of climate change and how climate-related trends influence people’s lives, both directly and indirectly. The findings also identify how people adapt to and cope with these changes. This paper aims to improve our understanding of local people’s perceptions of these changes, explore the ways they are affected by them, and how well they are adapting to them. In order for policymakers to plan responses to climate change in Bangladesh, it is essential to understand how people understand and cope with these trends. |
| Keywords: | Climate change, Poverty, Gender, Women, rural areas, rural population, vulnerability, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1322&r=agr |
| By: | Cretu, Daniela; Iova, Radu Andrei; Lascar, Elena |
| Abstract: | The income and consumption of the population are determined by the general evolution of the national economy, these know effects of the accession and post-accession processes of the country to the European Union. In this respect, in the present paper we proposed to study the evolution of the household, of the agricultural and nonagricultural income, supposing that the agricultural income determined a favorable evolution, using the research methods documenting, analyzing and processing of data by the secondary analysis. In Romania in the analyzed period, the decrease of the purchasing power of available income, inflation, high prices and tariffs for some goods and services led the households to reduce consumption to the bare minimum and to try to keep as much as possible the prior levels of consumption choosing to save costs. |
| Keywords: | agricultural household, rural population, nominal income, agricultural income, non agricultural income |
| JEL: | Q1 |
| Date: | 2013–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:54999&r=agr |
| By: | Taff, Steven J. |
| Abstract: | This report is a summary of the data contained on the farmland sales portion of the Minnesota Land Economics (MLE) web site (http://landeconomics.umn.edu ) as of March 15, 2014. It is formally reissued each year, as new sales data become available. The present document consists largely of graphs and tables summarizing sales over the past twenty-four years. It provides averages at the multi-county region and at the statewide levels of aggregation. Individual transaction data are available for downloading and analysis at the MLE web site. |
| Keywords: | Land Economics/Use, |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:umaesp:164852&r=agr |
| By: | Mureşanu, Felicia; Has, Voichiţa; Ignea, Mircea |
| Abstract: | The paper is a synthesis of the results obtained during 1998-2010, on the effectiveness of biological (Trichogramma spp.) and chemical treatments (different insecticides) in reducing the attack of Ostrinia nubilalis Hbn. to the corn genotypes created at The Agricultural Research and Development Station Turda. Among Trichogramma species used, a good efficacy in reducing attack of Ostrinia nubilalis was presented by T. maidis (80.0 %) and T. evanescens (78.0 %) - 3 applications. The applications with these species of Trichogramma to maize crops should be done at a distance of 6-7 m / row and between rows, in order to allow a uniform dispersion and a high degree of parasitizing eggs of corn borer. The biological treatments with T. maidis made to corn hybrids created at SCDA Turda, had reduced significantly the corn borer attack, recording production increases from 4.0 to 11.0 %. The basic conditions for achieving high efficiency in reducing the attack of Ostrinia nubilalis, with Trichogramma spp. are: conducting applications at optimal moment and ensuring optimum densities correlated with the density of the pest and chemicals used (Decis Mega 50 EW, Calypso 480 SC) had reduced the attack frequency significantly and very significantly, their efficacy in this regard was between 87-90 %. From the analysis performed through the economic effect of biological and chemical treatments to combat corn borer (Ostrinia nubilalis) resulted certain economic advantages using the method of biological control with Trichogramma spp., both in terms of reducing costs per hectares and the production growth produced. Thus, the species of this entomophage used, Trichogramma spp., constitutes in a way a “new generation of biological insecticides'', that does not pollute and is used to combat the over 500 species of pests in the order Lepidoptera. |
| Keywords: | Trichogramma spp., Ostrinianubilalis Hbn., biological treatments, economic efficiency |
| JEL: | Q1 |
| Date: | 2013–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55009&r=agr |
| By: | Gibbs, Holly; Sahoko Yui; Richard Plevin |
| Abstract: | We synthesized a range of geographically-explicit forest, grassland and cropland biomass and soil carbon input data sources and used geographic information systems (GIS) software to calculate new estimates of soil and biomass carbon stocks for use with global economic models, particularly for the Global Trade and Analysis Project (GTAP). Our results quantify the average amount of carbon stored in soil and biomass in each of the 246 countries, stratified by agro-ecological zones (available in the accompanying spreadsheet). We also provide the data aggregated to the 134 regions defined for the GTAP 8.1 database both in spreadsheet form and in GTAP’s native binary file format. Finally, we provide an add-on to FlexAgg2 program to further aggregate the 134 regions as desired. Our analysis makes substantial refinements to the estimates of carbon stocks used for modeling carbon emissions from indirect land use change. The spatial detail of our analysis is a major advantage over previous databases because it provides estimates tailored to the regions of interest and better accounts for the variation of carbon stocks across the landscape, and between wetland and non-wetland regions. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:gta:techpp:4344&r=agr |
| By: | Anderson, Weston; You, Liangzhi; Wood, Stanley; Wood-Sichra, Ulrike; Wu, Wenbin |
| Abstract: | This study aims to explore and quantify systematic similarities and differences between four major global cropping systems products: the dataset of monthly irrigated and rainfed crop areas around the year 2000 (MIRCA2000), the spatial production allocation model (SPAM), the global agroecological zone (GAEZ) dataset, and the M3 dataset developed by Monfreda, Ramankutty, and Foley. The analysis explores not only the final cropping systems maps but also the interdependencies of each product, methodological differences, and modeling assumptions, which will provide users with information vital for discerning between datasets in selecting a product appropriate for each intended application. |
| Keywords: | farmland, Cropping systems, yield, Cartography, global cropland, harvested area, downscaling, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1327&r=agr |
| By: | Chetroiu, Rodica; Călin, Ion |
| Abstract: | The economic efficiency is a concept with a complex content, which expresses the useful effect achieved in an economic activity, in relation to the requested expenditures, or the effort for its realization. Through its applicative side, the efficiency (e) can be defined as a quantitative ratio between the effects (E) and the resources or efforts (R) made to obtain them, or, in other words, achieving maximum effect with a specified level of consumptions, or reaching the determined effect with minimum consumption: e = E / R max (maximizing the effects obtained per unit of allocated, consumed resources); e = R / E min (minimizing the resource consumption per unit of effect achieved). This concept is the most important qualitative indicator of the economic development, a key factor in accelerating economic growth. Applied in agriculture, it represents the obtaining the maximum amount of production per hectare or per animal, with minimal expenditure of manpower and materials. Determination of economic efficiency must be based on knowledge of the elements that characterize the production effort and having three main sources: the optimal use of resources, rational use of labor and production management. |
| Keywords: | economic efficiency, effects, resources, agriculture, concept |
| JEL: | Q0 Q1 |
| Date: | 2013–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55007&r=agr |
| By: | Sonia De Gregorio Hurtado; Marta Olazabal; Monica Salvia; Filomena Pietrapertosa; Eduardo Olazabal; Davide Geneletti; Valentina D?Alonzo; Efrén Feliú; Senatro Di Leo; Diana Reckien |
| Abstract: | Cities are widely recognised as being pivotal to fight climate change. Cities magnify the drivers of climate change, experience the impacts and also concentrate the highest room for action. Given the 70% of the global emissions that cities are responsible for, national governments are unable to meet their international commitments for addressing mitigation and adaptation without the action and cooperation of cities. In turn, the capacity of local governments to address climate change is largely determined by the institutional architecture within which they are integrated. As a result, the relationship between the different arenas of authority and the integration of cities in national and international networks is considered critical in shaping the global capacity to govern climate change. This work aims to understand how multi-level climate governance and alliances of cities (national and international) are influencing the climate change capacity and performance of municipalities. This has been done by focusing on two national contexts of the European Union, Italy and Spain, in which climate policy, multi-level governance frameworks, the effects of the national and international networks of cities, and the climate response of cities are analysed through an extensive review of scientific and grey literature, and institutional documents. The results concur with existing literature on the importance of constructing collaborative multi-level climate frameworks at the national scale, that fully integrate the local level, in order to support cities to develop consistent climate action and raise awareness of the responsibility they have in this policy field. |
| Keywords: | urban climate action; multi-level governance; networks of cities; mitigation; adaptation; Italy; Spain. |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:bcc:wpaper:2014-02&r=agr |
| By: | ISHIWATA Ayako; Petr MATOUS; TODO Yasuyuki |
| Abstract: | Poverty reduction in rural Africa necessitates diversification of income sources from agriculture to nonfarm activities. Clustering of micro-enterprises in rural areas can promote nonfarm income. This study examines the determinants of growth in sales and skill levels of microenterprises in a tailor cluster in rural Ethiopia, focusing on the role of business networks. We collected panel data, including measures of business networks through procurement, outsourcing, and financing, for three years from 136 firms, the population in the "survival" cluster. The results show that when firms are closer to the center of business networks, i.e., firms are characterized by a higher centrality measure, they are more likely to increase sales. However, although network centrality is also associated with a higher level of tailoring skills, the skill level itself has no significant effect on sales. The finding implies that consumers in the area are not concerned much about the quality of products. Therefore, while expanding business networks can promote sales and skill levels, incentives to upgrade skills are minimal. |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:14014&r=agr |