nep-agr New Economics Papers
on Agricultural Economics
Issue of 2019‒11‒04
ten papers chosen by
Angelo Zago
Università degli Studi di Verona

  1. How should rural financial cooperatives be best organized? Evidence from Ethiopia By Koru, Bethelhem
  2. Case Studies on the Water Use of Large Scale Mining in the Philippines By C Magno; J Morillo
  3. Attitude of Georgian Consumers to Healthy Nutrition By Nugzar Todua
  4. Salmon and sea trout angling: Anglers’ conservation preferences By Grilli, Gianluca; Curtis, John; Hynes, Stephen
  5. Indirect Valuation of Khao-Luang Forest Area: The CVM Approach By Sittiphat Lerdsrichainon; Nantarat Tangvitoontham; Sittidaj Pongkijvorasin
  6. Climate Change, Endangered Environment and Vulnerable Aboriginals of India – A Critical Study By Gouri Sankar Bandyopadhyay
  7. Analysis of Smallholder Maize Market Participation in Kaduna State, Nigeria By Mani, Jamila Rabe; Abdussalam, Zakari; Damisa, M.A.; Yusuf, Musa; Suleiman, N. Jamilu
  8. Production and market participation decisions of smallholder cowpea producers in the Northern Region of Ghana: A triple hurdle model approach By Kondo, Ebenezer; Sarpong, Daniel Bruce; Egyir, Irene S.
  9. Margins of Fair Trade Wines Along the Supply Chain: Evidence from South African Wine on the U.S. Market By Back, Robin M.; Niklas,Britta; Liu, Xinyang; Storchmann, Karl; Vink, Nick
  10. Measurement Error Mechanisms Matter: Agricultural intensification with farmer misperceptions and misreporting By Abay, Kibrom A.; Bevis, Leah E.M.; Barrett, Christopher B.

  1. By: Koru, Bethelhem
    Abstract: What is the optimal size and composition of Rural Financial Cooperatives (RFCs)? With this broad question in mind, we characterize alternative formation of RFCs and their implications in improving rural households’ access to financial services, including savings, credit and insurance services. We find that some features of RFCs have varying implications for delivering various financial services (savings, credit and insurance). We find that the size of RFCs exhibits nonlinear relationship with the various financial services RFCs provide. We also show that compositional heterogeneity among members (including diversity in wealth) is associated with higher access to credit services, while this has little implication on households’ savings behavior. Similarly, social cohesion among members is strongly associated with higher access to financial services. These empirical descriptions suggest that the optimal size and composition of RFCs may vary across the domains of financial services they are designed to facilitate. These pieces of evidence provide some suggestive insights on how to ensure financial inclusion among smallholders, a pressing agenda and priority of policy makers in developing countries, including Ethiopia. The results also provide some insights into rural microfinance operations which are striving to satisfy members’ demand for financial services.
    Keywords: Agricultural Finance, Financial Economics
    Date: 2019–09
  2. By: C Magno (School of Economics, University of the Philippines Diliman); J Morillo (National Institute of Geological Sciences, University of the Philippines Diliman)
    Abstract: Water use is one of the most critical sustainability issues of the mining sector. It is important in each stage of the mining life cycle. The water use of the mine can introduce significant ecological changes. It can compete with the water use of households living in the community and other economic activities in the area. We look at the water use of two large scale mining companies and communities in Didipio, Nueva Viscaya and Taganito, Surigao del Norte. We compare water extraction with various factors such as mineral production, land use, rehabilitation, mine development, and environmental concerns. Based on our initial findings, the rate of water extraction of the two mines is significantly correlated with the level of mine development, rehabilitation and pollution control. In both cases, household consumption plays a minimal role in driving the demand for water.
    Keywords: mining; water use; water extraction; Philippines
    JEL: Q56 Q58 Q59
    Date: 2019–10
  3. By: Nugzar Todua (Ivane Javakhishvili Tbilisi State University)
    Abstract: Work shows that in the modern conditions particular attention is paid to in-depth studying of the population?s practices of healthy nutrition, as dietary norms, traditions and customs comprise integral part of everyday life. Regarding the mentioned, the work analyses the situation with respect of population?s healthy nutrition in Georgia and in the world and identifies the key problems related to it. Attention is focused on the fact that for modern Georgia healthy nutrition is a significant problem and this is reflected in buying behavior of Georgian consumers. Article underlines the role of social marketing in ensuring consumers? healthy nutrition. It emphasizes significance of food labeling, as a marketing instrument for consumers awareness in healthy nutrition. For the purpose of clarification of Georgian consumers? attitude to healthy nutrition the marketing research was conducted. The research showed the levels of the respondents? awareness in healthy nutrition, attitude of the consumers and their trust to the information on the food packages. With respect of attitude to healthy nutrition, the work identifies the consumer types. Applying dispersion analysis we have showed impact of the consumers? awareness, as well as trust to the information on the food packages on buying behavior in relation to healthy nutrition. On the basis of the conducted research the conclusions were made that allow formulation of global vision of Georgian consumers? attitude to healthy nutrition.
    Keywords: healthy nutrition, Georgian consumers, marketing research, awareness, food labeling
    JEL: M31
    Date: 2019–07
  4. By: Grilli, Gianluca; Curtis, John; Hynes, Stephen
    Date: 2019
  5. By: Sittiphat Lerdsrichainon (Faculty of Economics, Srinakharinwirot University); Nantarat Tangvitoontham (Faculty of Economics, Srinakharinwirot University); Sittidaj Pongkijvorasin (Faculty of Economics, Chulalongkorn University)
    Abstract: This research aims to investigate the indirect values of the forest, which are transformed to rubber plantation and agricultural crops. These have the negative effects to the environment. The study used Contingent Valuation Method (CVM) to explore and estimate the indirect values of the ?Kao Lhong Forest? such as the mineral in soil, the water absorption, CO2 absorption, the protection of storm and the temperature control. The questionnaires and in-dept interview techniques are applied in order to directly collect the data from the 380 local people in landslide area at Kao Lhong Forest.The research found that the local people are focusing on the indirect values, which have the effects on the community at the medium level. Good climate conditions is the most important element. Its value is averagely 3.29. Second important element is that Kao Lhong Forest prevent storms, which its value is 3.10. Lastly, the least average value of the important elements is water origin and soil absorb which is 2.84. Only 168 respondents willing to pay for the indirect benefits, which is averagely 77.63 baht per month. This study found that the maximum willingness to pay is for good soil quality (Conserve Nutrition) which is 20.68 baht per month. Additionally, the minimum willingness to pay is for the absorbing of Carbon Dioxide, which the value is 13.64 baht per month.
    Keywords: Indirect value, Forest valuing, Contingent Valuation Method
    JEL: Q50
    Date: 2019–07
  6. By: Gouri Sankar Bandyopadhyay (Syamsundar College India)
    Abstract: The severe effects of unprecedented climate change are justifiably considered a serious threat to human civilization in general and tribal-rural or aboriginal population in particular. The crisis has been identified globally but its consistently negative effects on indigenous people of the developing countries are not properly measured. In India such effects are projected to impact the millions of lives in folk-tribal heartland. It is historically proved that various effects of climate change such as sea level rise, recurrent floods, draughts, evaporation, increased cyclonic activities like tsunami, rising temperature have badly affected the downtrodden backward people like adivasis, Indian tribal, and their tradition-bound livelihood in this subcontinent. Due to changed weather pattern agricultural production has been rapidly declined in the last few decades in India. The present study needs to state that if climate change occurs in such way, India will lose land especially in the coastline and the rural economy will be affected drastically. In fact, climate change is a scary prospect especially for these rural populations whose culture is predominantly subsistence-based and non-urbanized in basic nature. The paper also tries to focus on the age-old indigenous awareness of ills of global warming and ongoing climatic change. The forested tribes have raised again and again their voices against the abrupt tree-falling and the timber merchant-contractors-politicians nexus that lies behind it. Growing social awareness of climate change and balanced sustainable development can minimize the vulnerability of these marginal populations.
    Keywords: climate change, damage to environment, indian aboriginal, livelihood, vulnerability
    Date: 2019–08
  7. By: Mani, Jamila Rabe; Abdussalam, Zakari; Damisa, M.A.; Yusuf, Musa; Suleiman, N. Jamilu
    Abstract: This study focused on the analysis of factors influencing market participation decisions and the intensity of participation among smallholder maize farmers in Kaduna State, Nigeria. Primary data were collected from 600 randomly selected maize farmers in 2017. Result showed that April and December are the months which farmers sell large quantities of maize. Proportional transaction costs including individual farmer characteristics, private assets, public assets influenced the probability and intensity of market participation at various significant levels. Level of education and ownership of assets are critical in determining the intensity of market participation in the study area. The study concludes that variable transaction costs constitute one of the major binding constraints to maize market participation and commercialisation. The results suggest that policies aimed at developing rural infrastructure, improved access to assets, human and capital development and market information system could reduce transaction costs and enhance market participation and market supply.
    Keywords: Agricultural and Food Policy, Crop Production/Industries
    Date: 2019–09
  8. By: Kondo, Ebenezer; Sarpong, Daniel Bruce; Egyir, Irene S.
    Abstract: This article investigates the production and market participation decisions of smallholder cowpea producers in the Northern Region of Ghana. It estimated the factors influencing cowpea production and market participation decisions. A cross-sectional primary data of 300 respondents were sampled from four districts in the northern region of Ghana for the study. We employed the Triple Hurdle Model (THM) for the data analysis. The results reveal that factors influencing cowpea production participation, market participation and intensity of participation are similar and include gender, education, distance to nearest market, own means of transportation, access to market information, proximity good road network, labour, tractor services, value of livestock owned, access to improved cowpea seed, and extension services. Policy measures that promote agricultural diversification should be implemented. Inclusion of cowpea as one of the priority food crops under the government’s flagship “Planting for Food and Jobs programme”. The private sector to take up the sale of improved cowpea seed and provision of tractor hiring services to smallholder cowpea producers. Provision of market spaces, good road infrastructure, and maintaining the free compulsory basic education policy as well as the development of more improved cowpea seed varieties will promote cowpea production and market participation in the Northern Region of Ghana.
    Keywords: Crop Production/Industries, Agricultural and Food Policy
    Date: 2019–09
  9. By: Back, Robin M.; Niklas,Britta; Liu, Xinyang; Storchmann, Karl; Vink, Nick
    Abstract: In this paper, we analyze profit margins and mark-ups of Fair Trade (FT) wines sold in the United States. We are particularly interested in whether and to what extent the FT cost impulse in production is passed on along the supply chain. We draw on a limited sample of about 470 South African wines sold in Connecticut and New Jersey in the fall of 2016; about 90 of them are certified FT. For these wines we have FOB export prices, wholesale prices, and retail prices, which allows us to compute wholesale and retail margins and analyze the FT treatment effect. We run OLS, 2SLS and Propensity Score Matching models and find evidence of asymmetrical pricing behavior. While wholesalers seem to fully pass-through the FT cost effect, retailers appear to amplify the cost effect. As a result, at the retail level, FT wines yield significantly higher margins than their non-FT counterparts
    Keywords: Agricultural and Food Policy, Industrial Organization
    Date: 2019
  10. By: Abay, Kibrom A.; Bevis, Leah E.M.; Barrett, Christopher B.
    Abstract: The mechanism(s) that generate measurement error matter to inference. Survey measurement error is typically thought to represent simple misreporting correctable through improved measurement. But errors might also or alter-natively reflect respondent misperceptions that materially affect the respon-dent decisions under study. We show analytically that these alternate data generating processes imply different appropriate regression specifications and have distinct effects on the bias in parameter estimates. We introduce a simple empirical technique to generate unbiased estimates under more gen-eral conditions and to apportion measurement error between misreporting and misperceptions in measurement error when one has both self-reported and objectively-measured observations of the same explanatory variable. We then apply these techniques to the longstanding question of agricultural intensifica-tion: do farmers increase input application rates per unit area as the size of the plots they cultivate decreases? Using nationally representative data from four sub-Saharan African countries, we find strong evidence that measurement error in plot size reflects a mixture of farmer misreporting and misperceptions. The results matter to inference around the intensification hypothesis and call into question whether more objective, precise measures are always preferable when estimating behavioral parameters
    Keywords: Research Methods/ Statistical Methods, Farm Management
    Date: 2019–09

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