nep-agr New Economics Papers
on Agricultural Economics
Issue of 2020‒01‒20
twenty-one papers chosen by

  1. Measurement of Water Productivity in Seasonal Floodplain Beel Area By Hossain, Istiaque; Alam, Md. Mahmudul; Siwar, Chamhuri; Bin Mokhtar, Mazlin
  2. The Ethiopian Commodity Exchange and Spatial Price Dispersion: Disentangling Warehouse and Price Information effects By Hailemariam Ayalew; Dagim G. Belay
  3. Can a Growing World Be Fed When the Climate Is Changing? By Simon Dietz; Bruno Lanz
  4. IFAD RESEARCH SERIES 42 What drives rural youth welfare? The role of spatial, economic, and household factors By Arslan, Aslihan; Tschirley,David; Egger, Eva-Maria
  5. Agricultural exports and economic development in Spain during the first wave of globalisation By María-Isabel Ayuda; Vicente Pinilla
  6. Climate and the Economy in India, 1850-2000 By Roy, Tirthankar
  7. Economic evaluation of catch-and-release salmon fishing: impact on anglers’ willingness to pay By Ropars-Collet, Carole; Le Goffe, Philippe
  8. Food Security and Low-Income Households in the Malaysian East Coast Economic Region: An Empirical Analysis By Alam, Md. Mahmudul; Siwar, Chamhuri; , Abu N.M. Wahid; Talib, Basri
  9. Effect of environmental and altruistic attitudes on willingness-to-pay for organic and fair trade coffee in Flanders By L Maaya; M Meulders; N Surmont; Martina Vandebroek
  10. Crop Productivity Estimates for Past Societies in the World Sample-30 of Seshat: Global History Databank By Turchin, Peter; Currie, Thomas E.; Collins, Christina; Levine, Jill; Oyebamiji, Oluwole; Edwards, Neil R.; Holden, Philip.B.; Hoyer, Daniel; Feeney, Kevin; Francois, Pieter
  11. Credit Rationing and Pass-Through in Supply Chains: Theory and Evidence from Bangladesh By M. Shahe Emran; Dilip Mookherjee; Forhad Shilpi; M. Helal Uddin
  12. The Operation of an Informal Market: Bolgatanga’s Goat Market By Rancatore, Jason
  13. Challenge of community based fish culture program in Bangladesh: case study on floodplain Beel mail in Rajshahi By Hossain, MI; Siwar, C; Alam, Md. Mahmudul
  14. Rural Transformation, Inequality, and the Origins of Microfinance By Marvin Suesse; Nikolaus Wolf
  15. Geographical Roots of the Coevolution of Cultural and Linguistic Traits By Galor, Oded; Özak, Ömer; Sarid, Assaf
  16. The uneven spread of Global G.A.P. certification By Flachsbarth, Insa; Grassnick, Nina; Brümmer, Bernhard
  17. Climate change awareness: Empirical evidence for the European Union By Donatella, Baiardi; Claudio, Morana
  18. Adoption of Improved Seeds, Evidence from DRC By Tanguy Bernard; Sylvie Lambert; Karen Macours; Margaux Vinez
  19. A Reflection on Economics of Microcredit Borrowing in Rural Bangladesh By Molla, Rafiqul Islam; Alam, Md. Mahmudul
  20. Fertility after The Drought: Theory and Evidence from Madagascar By Dessy, Sylvain; Marchetta, Francesca; Pongou, Roland; Tiberti, Luca
  21. A sequential bargaining protocol for land rental arrangements By Valencia-Toledo, Alfredo; Vidal-Puga, Juan

  1. By: Hossain, Istiaque; Alam, Md. Mahmudul (Universiti Utara Malaysia); Siwar, Chamhuri; Bin Mokhtar, Mazlin
    Abstract: Water scarcity is becoming a central issue in agricultural activities around the world. As agriculture is one of the major consumers of freshwater, more yield or output using same or less amount of water has become the global interest. Therefore water productivity (WP) is also considered as an indicator of agricultural productivity. Several research works have been conducted on WP values of different yields, tools and technologies to improve WP. Most of the studies on water productivity considered the crop productivity using limited water resource and searched for better technologies for improving crop water productivity. Researchers also concentrated on improving irrigation efficiency or water use efficiency at field level for irrigation through water management and for yielding more crops. But there is a research gap in assessing values of water productivity in aquatic ecosystems especially floodplain areas. A floodplain area remains dry and flooded in two different seasons. Thus, a combined valuation of aquatic resources and rice production in two different seasons are very important to measure the efficient usages of the lands. So, this study deals with how to measure annual aggregate water productivity for dry season and flood season in a floodplain beel area.
    Date: 2019–02–28
  2. By: Hailemariam Ayalew (Trinity College Dublin); Dagim G. Belay (Department of Food and Resource Economics, University of Copenhagen)
    Abstract: Agricultural commodity markets in developing countries are characterized by high transaction costs and risks that reduce trade flows among spatial markets. We examine whether institutionalized agricultural commodity exchange markets reduce transaction costs and hence spatial price dispersion using the introduction of the Ethiopian Commodity Exchange (ECX) as a quasi-experiment. We use a commodity level Difference-in-Difference identification strategy to compare the spatial price dispersion of cereals that are traded at ECX (maize and wheat) with a cereal traded only at the local market (teff). Results show that ECX significantly reduces the spatial price dispersion of maize and wheat compared to teff. This effect varies depending on crop type and the time length since the ECX started trading the commodity. The longer the duration, the larger the reduction in price dispersion. We also find that dissemination of price information is the main channel through which the commodity exchange affects spatial price dispersion.
    Keywords: Commodity Exchange, Difference-in-Difference, Ethiopia, Price Dispersion, Spatial market
    JEL: O13 O18 Q12 Q13
    Date: 2020–01
  3. By: Simon Dietz; Bruno Lanz
    Abstract: We study the capacity to meet food demand under conditions of climate change, economic and population growth. We take a novel approach to quantifying climate impacts, based on a model of the global economy structurally estimated on the period 1960 to 2015. The model integrates several features necessary to study the problem, including an explicit agriculture sector, endogenous fertility, directed technical change and fossil/renewable energy. We estimate the world economy is more than one trillion dollars smaller, and world population more than 80 million smaller, than would have been the case without climate change. This is despite substantial adaptation having taken place in general equilibrium through R&D and agricultural land expansion. Policy experiments with the model suggest that optimal GHG taxes are high and future temperatures held well below 2°C.
    Keywords: adaptation, agricultural productivity, climate change, directed technical change, energy, food security, economic growth, population growth, structural estimation
    JEL: C51 O13 O44 Q54
    Date: 2019
  4. By: Arslan, Aslihan; Tschirley,David; Egger, Eva-Maria
    Abstract: Most of the discourse on rural youth in developing countries lacks robust evidence on where rural youth live and how the challenges and opportunities of their location affect their welfare outcomes. This paper uses the concept of the Rural Opportunity Space from economic geography literature to shed light on these questions. Rural opportunities are expected to be shaped by commercial and agricultural potential of a location. We apply this conceptual framework to global geo-spatial data from 85 low- and middle-income countries on population density, as a proxy for commercial potential, and a measure of greenness, as a proxy for agricultural potential, to locate rural youth within the opportunity space globally. We then combine these data with household-level data from 12 countries in Africa, Latin America and Asia, to assess how the Rural Opportunity Space influences welfare outcomes of young households compared with older households. Our findings show that most rural youth actually live in areas with high potential in terms of commercial and agricultural opportunities. However, their welfare outcomes depend much more strongly on commercial potential than on agricultural potential. Education can have large poverty-reducing effects for younger households, especially in areas where commercialization potential is neither lowest nor highest.
    Keywords: Agribusiness, Community/Rural/Urban Development, International Development
    Date: 2019
  5. By: María-Isabel Ayuda; Vicente Pinilla
    Abstract: The objective of this article is to study the evolution of Spanish agricultural exports, their share of agricultural production as a whole, the determinants of their expansion and, finally, the contribution that they have made to economic development. Our results show considerable dynamism in agricultural exports, which however faced certain obstacles that limited any further expansion. Their share on production varied greatly, but for some relevant products it was fundamental, substantially contributing to its growth. The increase in external demand but also the comparatively high profitability of export products and a high level of competitiveness in the international market generated highly dynamic behaviour in supply. The contribution of the export sector to Spanish economic growth was positive although moderate. It contributed to financing necessary imports during the industrialisation process, favoured a more efficient allocation of resources and produced intersectoral linkages. However, the geographical concentration of production for export limited its spatial impact on the Spanish economy.
    Keywords: agricultural development, agricultural trade, Spanish economic history, first wave of globalisation
    JEL: N53 N73 O13 Q17
    Date: 2020–01
  6. By: Roy, Tirthankar (London School of Economics and Political Science)
    Abstract: This article says that climate shaped the long-term pattern of economic change in India and that the climatically conditioned economic change generated a distinct set of environmental consequences in the region. From the nineteenth century, political and economic processes that made scarce and controlled water resources more accessible to more people, enhanced welfare, enabled more food production and sustained urbanization. The same processes also raised water stress. These propositions carry lessons for comparative economic history and the conduct of discourses on sustainability in the present times.
    Keywords: JEL Classification:
    Date: 2019
  7. By: Ropars-Collet, Carole; Le Goffe, Philippe
    Abstract: Catch-and-release (C&R) could be an interesting management tool in recreational fisheries as long as mortality remains low and the anglers’ well-being does not drop. We used a choice experiment to examine the potential of C&R angling as a monitoring tool for the salmon recreational fishery in Brittany (France). Anglers were asked to choose between hypothetical fishing day trips differing in terms of their combination of relevant attributes and levels. From the analysis of respondents’ trade-offs between the fishing trip’s attributes, willingness-to-pay were estimated for each level of attribute. Our results show that anglers prefer unrestrictive regulations. All in all, the majority of the anglers nonetheless hold a positive valuation of a C&R fishing day, which could therefore be used to generate economic returns for the river once the TAC is reached. Lastly, the fishing season, and especially the level of river use, impact more on the value of fishing than C&R.
    Keywords: Livestock Production/Industries
    Date: 2020
  8. By: Alam, Md. Mahmudul (Universiti Utara Malaysia); Siwar, Chamhuri; , Abu N.M. Wahid; Talib, Basri
    Abstract: This research aims at analyzing the level of food security among some selected poor and low-income households in Malaysia. The study area is located in the East Coast Economic Region of the country. It uses primary data collected during the July-October months of 2012 and 460 sample families were chosen from the E-Kasih poor households database based on cluster random sampling technique. In this sample survey, households’ food security has been measured by the USAID-HFIA model. The findings of the study indicate that 52.8% of the households are food secure, that of 23.3% are mildly food insecure, 14.3% are moderately food insecure, and 9.6% are severely food insecure. The findings on the current situation of household food security among different economic groups is very important for the policy makers to achieve Vision 2020 and the targets of Malaysian National Plans regarding food security, socioeconomic development and poverty alleviation. In order to ensure food security in Malaysia, especial focuses are needed for those who are severely food insecured and those who are food insecured but marginally above the poverty line. Here the involvement of private sector and community based organizations are also important to combat the short run, seasonal, and event related risk of food insecurity as well as for the development of appropriate mitigation and adaptation options to ensure sustainable food security at household level in Malaysia.
    Date: 2019–02–28
  9. By: L Maaya; M Meulders; N Surmont; Martina Vandebroek
    Abstract: Sustainability labels on food products provide information to consumers that the product has been produced in an ethical way. We explore the knowledge and purchasing behaviour of the organic label and fair trade label. Secondly, we investigate the willingness-to-pay (WTP) for food products bearing organic and fair trade labels. Thirdly, we evaluate the correlation in WTP for organic and fair trade. Lastly, we examine the effect of environmental and altruistic attitudes on WTP for both sustainability labels. We draw our conclusions by analyzing a stated choice experiment on consumers coffee buying behaviour in Flanders, Belgium. Our results suggest that knowledge for the fair trade label is higher than that of the organic label. The importance of the organic and fair trade labels on coffee purchase decisions and their WTP estimates were similar. We found a high correlation in WTP for both labels. Our results indicate significant effects of environmental and altruistic attitudes in WTP for both organic and fair trade labels.
    Keywords: Coffee, Organic, Fair trade, Willingness-to-pay, Attitudes
    Date: 2018–10
  10. By: Turchin, Peter; Currie, Thomas E.; Collins, Christina; Levine, Jill; Oyebamiji, Oluwole; Edwards, Neil R.; Holden, Philip.B.; Hoyer, Daniel (Evolution Institute); Feeney, Kevin; Francois, Pieter
    Abstract: This article reports the results of a collaborative research project that aims to estimate agricultural productivities of the past societies in the Seshat World Sample-30. We focus on 30 Natural Geographic Areas (NGAs) distributed over 10 major world regions (Europe, Africa, Southwest Asia, South Asia, Southeast Asia, East Asia, Central Eurasia, North America, South America, and Oceania). The conceptual framework that we use to obtain these estimates combines the influences of the production technologies (and how they change with time), climate change, and effects of artificial selection into a Relative Yield Coefficient, indicating how agricultural productivity changed over time in each NGA between the Neolithic and Industrial Revolutions. We then use estimates of historical yield in an NGA to translate the Relative Yield Coefficient into an Estimated Yield (tons per hectare per year) trajectory. We tested the proposed methodology in two ways. For eight NGAs, in which we had more than one historical yield estimate, we used the earliest estimate to anchor the trajectory and compared the ensuing trajectory to the remaining estimates. We also compared the end points of the estimated NGA trajectories to the earliest (the 1960s decade) FAO data on crop productivities in the modern countries encompassing Seshat NGAs.
    Date: 2019–01–30
  11. By: M. Shahe Emran; Dilip Mookherjee; Forhad Shilpi; M. Helal Uddin
    Abstract: We extend standard models of price pass-through in an imperfectly competitive supply chain to incorporate rationing of trade credit. Credit rationing reverses predictions concerning effects of raw material import prices on pass-through to wholesale prices, and effects of regulations of intermediaries. To test these we study the effects of a policy in Bangladesh's edible oils supply chain during 2011-12 banning a layer of financing intermediaries. Evidence from a difference-in-difference estimation rejects the standard model. We find that the regulatory effort to reduce market power of financing intermediaries ended up raising consumer prices by restricting access to credit of downstream traders.
    JEL: L13 O12 Q13
    Date: 2020–01
  12. By: Rancatore, Jason
    Abstract: Research on price trends in informal markets relies on visits to these sites and utilizing some kind of survey instrument. This paper begins with a broader question and adopts a more grounded strategy, asking: what are some elements of an informal commodity market in a developing country, such as a goat market, that can be identified in an ethnographic approach? Based on 18 months of field observations, the paper narrates the presence or absence of formal documentation and informal rules across three categories (price, care, and transportation) at its case study site of the goat market in Bolgatanga, Ghana. It finds that there is an almost complete lack of standard documentation seen in the everyday life of developed countries. It also notes the relatively stable, yet informal, practices with respect to bargaining and exchange and organized transportation to a point of sale. These social and cultural practices are likely important to any planned adjustment or intervention to ensure food security or simply improved market operation.
    Date: 2018–11–09
  13. By: Hossain, MI; Siwar, C; Alam, Md. Mahmudul (Universiti Utara Malaysia)
    Abstract: Bangladesh is one of the largest and richest floodplain lands in the world. There are 3 million hectares of medium and deep flooded areas. In the dry season these land are used for rice production, but these lands remain unutilized or underutilized for a long period because of flooding. Recently, rice and fish culture is practiced in dry and flooding season under community based fisheries management (CBFM) in Kalmina Beel, Fulbaria, Mymensingh and Angrar Beel, Pirganj, Rangpur areas as case studies. Assessment of the challenges and problems of these beels will help to implement it in other floodplain areas of Bangladesh that will help utilize land and waterbodies with a good source of food, employment and better income source for poor people. To understand the challenges of implementation of CBFM, this study was conducted on Beel Mail at Rajshahi in Bangladesh as a case study. This study conducted focus group discussion among the CBFM stakeholders. It was revealed that lack of skills, education, technological knowledge, and conflict among the stakeholders are the main internal constraints. Lack of coordination among the government agencies, improper facilities for marketing, infrastructure, and financial services, and environmental externalities were identified as major external constraints of successful implementation of CBFM. Some policy recommendations for the successful implementation of the CBFM have been formulated.
    Date: 2019–02–28
  14. By: Marvin Suesse; Nikolaus Wolf
    Abstract: What determines the development of rural financial markets? Starting from a simple theoretical framework, we derive the factors shaping the market entry of rural microfinance institutions across time and space. We provide empirical evidence for these determinants using the expansion of credit cooperatives in the 236 eastern counties of Prussia between 1852 and 1913. This setting is attractive as it provides a free market benchmark scenario without public ownership, subsidization, or direct regulatory intervention. Furthermore, we exploit features of our historical set-up to identify causal effects. The results show that declining agricultural staple prices, as a feature of structural transformation, leads to the emergence of credit cooperatives. Similarly, declining bank lending rates contribute to their rise. Low asset sizes and land inequality inhibit the regional spread of cooperatives, while ethnic heterogeneity has ambiguous effects. We also offer empirical evidence suggesting that credit cooperatives accelerated rural transformation by diversifying farm outputs.
    Keywords: microfinance, credit cooperatives, rural transformation, land inequality, Prussia
    JEL: G21 N23 O16 Q15
    Date: 2019
  15. By: Galor, Oded; Özak, Ömer (Southern Methodist University); Sarid, Assaf
    Abstract: This research explores the geographical origins of the coevolution of cultural and linguistic traits in the course of human history, relating the geographical roots of long-term orientation to the structure of the future tense, the agricultural determinants of gender bias to the presence of sex-based grammatical gender, and the ecological origins of hierarchical orientation to the existence of politeness distinctions. The study advances the hypothesis and establishes empirically that: (i) geographical characteristics that were conducive to higher natural return to agricultural investment contributed to the existing cross-language variations in the structure of the future tense, (ii) the agricultural determinants of gender gap in agricultural productivity fostered the existence of sex-based grammatical gender, and (iii) the ecological origins of hierarchical societies triggered the emergence of politeness distinctions.
    Date: 2018–11–07
  16. By: Flachsbarth, Insa; Grassnick, Nina; Brümmer, Bernhard
    Abstract: Global G.A.P. compliance has often become a key requirement for farmers to ac- cess high-value global markets. Yet, the global spread of certification is highly un- even among countries. We assess the drivers and dynamics behind these unequal patterns, applying panel data regressions. Findings show that global agricultural trade networks remain relevant, but are no longer sufficient in explaining certifica- tion. Fostering a favourable business environment – via providing secure land tenure and a functioning judicial system – as well as investing in transportation and infor- mation infrastructure may facilitate farmers’ participation in certification schemes. Stringency of existing public regulations is helpful for overcoming entry barriers.
    Keywords: Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies
    Date: 2020–01
  17. By: Donatella, Baiardi; Claudio, Morana
    Abstract: In this paper we assess public attitudes on climate change in Europe over the last decade. Based on aggregate …gures from the Special Eurobarometer surveys on Climate Change, we …nd that climate change attitudes have evolved according to the "S-shaped" ”information dissemination model, conditional to various socioeconomic and climatological factors. In particular, we fi…nd that environmental awareness is directly related to per capita income, social trust, secondary education, the physical distress associated with hot weather and damages caused by extreme weather episodes. It is also inversely related to greenhouse gas emissions and tertiary education. Moreover, consistent with our epidemics narrative, we find a negative impact for Donald Trump’s denial campaigns, yet a positive, larger effect for Greta Thunberg’s environmental activism. In terms of policy implications, this paper calls on the EU to take the vacant leadership in the climate change fight and to make a declaration of climate emergency. It also calls on teachers to introduce their students to climate change, leading journals of communication of science-related topics to grant the largest possible access to any climate change article they publish and public institutions to protect climate change evidence from politicization. This paper finally calls for a strict coordination of monetary and fiscal policies, to allow the green bonds market to rapidly growth to the size required for the implementation of effective climate change mitigation policies.
    Keywords: climate change, environmental attitude, green bonds, mitigation policy, EU
    JEL: Q50 Q54 Q58
    Date: 2020–01
  18. By: Tanguy Bernard (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique, IFPRI - International Food Policy Research Institute); Sylvie Lambert (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Karen Macours (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Margaux Vinez (The World Bank - The World Bank - The World Bank)
    Abstract: Agricultural input subsidies are often considered key instruments to increase adoption of new technologies in developing countries. Using unique experimental data from Equa- teur province in DRC, we document the e_ectiveness of such interventions in increasing households adoption of modern seed varieties (MVs). High subsidy levels increase adop- tion, in particular when other access constraints were also relieved. Demand is highly price sensitive, but demand curves do not display strong discontinuity at low prices. We _nd very limited spillover e_ects on adoption by non-voucher recipients. Adoption persists to some extent in the season that follows voucher distribution.
    Keywords: agricultural policies,technology adoption,input subsidies,Sub- Saharan Africa,Democratic Republic of Congo,JEL Codes: Keywords: agricultural policies
    Date: 2019–12
  19. By: Molla, Rafiqul Islam; Alam, Md. Mahmudul (Universiti Utara Malaysia)
    Abstract: There is no room for denying the critical importance of microcredit for economic emancipation of rural poor in Bangladesh or any such other country. In analyzing the effectiveness of microcredit program the microcredit providers (NGOs) use accounting profit of the borrowers’ enterprises ignoring implicit costs on the plea that the opportunity cost of labor is near zero in those countries. This plea is certainly not tenable. In this research we use the principle of economic profit taking into account the implicit cost of family labor. From the results of this pilot study we get the reflection that a bulk of the microcredit is borrowed for non productive purposes. As high as 24% of borrowers used the credit exclusively for consumption and debt repayment purposes, and therefore demand for payment of interest from them is nonsensical. Only 48 % of the borrowers used the credits entirely for investment purposes. However, they are faced with very low-return investment opportunities in rural areas. About 68% of them on average had an impressive 83% net return on investment available for payment of interest and dividend. But in case of as high as 32% of them average return on investment was not enough even to cover the most minimum or tolerance level of wages for family labors. In their cases any payment of interest for capital has to be at the expense of the sacrifice of this subsistence level wages of the family labors. They are trapped in a vicious circle of loans. In the absence of a built in mechanism for debt relief they have no scope to be freed from this bondage of debt. An Islamic microcredit model based on Mudarabah principle (whereby the lender and borrower share the business surplus/profit on an agreed ratio, but in case of loss the lender alone bears the loss) may be a better alternative for them. There are indications that it requires an investment of around Tk 12,000 for creating job opportunity for one rural labor for the whole year.
    Date: 2019–02–20
  20. By: Dessy, Sylvain; Marchetta, Francesca; Pongou, Roland; Tiberti, Luca
    Keywords: Environmental Economics and Policy, Food Security and Poverty
    Date: 2019–12–30
  21. By: Valencia-Toledo, Alfredo; Vidal-Puga, Juan
    Abstract: We consider land rental between a single tenant and several lessors. The tenant should negotiate sequentially with each lessor for the available land. In each stage, we apply the Nash bargaining solution. Our results imply that, when all land is necessary, a uniform price per unit is more favorable for the tenant than a lessor-dependent price. Furthermore, a lessor is better off with a lessor-dependent price only when negotiating first. For the tenant, lessors’ merging is relevant with lessor-dependent price but not with uniform price.
    Keywords: Bargaining; non-cooperative game; Nash solution; land rental
    JEL: C7
    Date: 2019–05–30

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