nep-ara New Economics Papers
on Arab World
Issue of 2009‒09‒19
six papers chosen by
Quentin Wodon
World Bank

  1. Factors Influencing Relative Price of Goods and Services Sectors in Turkey : An Econometric Analysis By Kivilcim Metin-Ozcan; Koray Kalafatcilar
  2. Entrepreneurial Attitudes and Behaviours in Small-Scale Dairy Farms in Turkey By Armagan, Goksel; Ozden, Altug
  3. Linking small producers to supermarkets? The role of intermediaries on the fresh fruit and vegetable market in Turkey. By Bignebat, Celine; Koc, Ali; Lemeilleur, Sylvaine
  4. Changes in cross-border trade costs in the Pan-Arab free trade area, 2001-2008 By Hoekman, Bernard; Zarrouk, Jamel
  5. Economic Efficiency of Smallholder Intensive Dairy Farms in Iran: Adjusted for Market Distortion By Bakhshoodeh, M.; Shahnushi, N.
  6. Tunisian agriculture: Are small farms doomed to disappear? By Jouili, Mustapha

  1. By: Kivilcim Metin-Ozcan; Koray Kalafatcilar
    Date: 2009
  2. By: Armagan, Goksel; Ozden, Altug
    Abstract: Dairy farms are quite important to transform Turkish livestock sector into being more productive and competitive in the process of EU integration. The purpose of this study is to determine the socio economic features of dairy farms in Turkey and to determine producersâ individual and management goals in the future. In addition, farmersâ level of participation related to the attitudes, behaviors and subjective norm components are determined and an entrepreneurship index is constructed to determine the factors that influence social economic characteristics of entrepreneurship. The material of the study consists of 167 surveys obtained from Cattle Breeders Association of Turkey in 17 cities through the postal mail in 2007. A five âLikert Scaleâ was used to determine behaviors and attitudes of farmers as well as descriptive statistics. In each category, factor weights were calculated based on factor analyses. Then, the social economic factors that determine entrepreneurship index were estimated using âLogistic Regressionâ. The results indicate that the primary goals of farmers are high income, enjoying the job, better life conditions, earning respect, utilizing the resources, better image, and producing high quality products. When entrepreneurial behaviors and attitudes are examined it was found that most of the farmers aim at earning high profit as a main goal and value dairy milk farming. The logistic regression shows that the factors that determine entrepreneur index are age, experience and area of feed crops.
    Keywords: Small-Scale Dairy Farms, Entrepreneur Index, Theory of Planned Behavior, Turkey, Consumer/Household Economics, Livestock Production/Industries, Production Economics, Q12, Q16,
    Date: 2009–08–20
  3. By: Bignebat, Celine; Koc, Ali; Lemeilleur, Sylvaine
    Abstract: A wide range of the empirical studies shows to what extend the rise of supermarkets in developing countries deeply transform domestic marketing channels. In particular, the exclusion of small producers from the so-called dynamic marketing channels (that is remunerative ones) is at stake. Based on original data collected in Turkey in 2007 at the producer and the wholesale market levels, we show that the intermediaries are decisive in order to understand the impact of downstream restructuring (supermarkets) on upstream decisions (producers). The results show first that producers are not aware of the final buyer of their produce, as intermediaries hinder the visibility of the marketing channel, their choice is restricted to that of the first intermediary. Moreover, the econometric results conclude that producers who are indirectly linked to the supermarkets are more sensitive to their requirements in terms of quality and packaging than to the price premia they set accordingly to the effort made to meet their standards. Therefore, the results question the role of the wholesale market agents who act as a buffer in the chain and protect small producers from negative shocks, but who stop positive shocks as well, and reduce incentives.
    Keywords: supermarkets, small farmers, fresh fruit and vegetables, Turkey, Agribusiness, Production Economics, Q13, L14, D24,
    Date: 2009–08–20
  4. By: Hoekman, Bernard; Zarrouk, Jamel
    Abstract: The Pan-Arab Free Trade Area, negotiated under auspices of the Arab League, came into force in 1997. Under the agreement all tariffs on goods of Arab origin were to be removed by January 1, 2005. This paper summarizes the results of a firm-level survey in nine countries regarding the implementation of the Pan-Arab Free Trade Area. A majority of respondent companies report that tariffs on intra-regional trade have largely been removed, and that there has been a marked improvement in customs clearance-related procedures. Costs associated with administrative red tape and weaknesses in transport-related infrastructure services are ranked as the most important constraints to intra-regional trade. This suggests that from a policy perspective, efforts to reduce real trade costs deserve priority, including transportation and logistics services. Periodic monitoring and assessment of trade incentives and performance would help governments to benchmark performance and identify priority areas for action, at both the national and the sub-regional levels.
    Keywords: Transport Economics Policy&Planning,Trade Law,Free Trade,Trade Policy,Transport and Trade Logistics
    Date: 2009–08–01
  5. By: Bakhshoodeh, M.; Shahnushi, N.
    Abstract: The dairy farmers in Iran are faced with milk price distortion due to the market imperfection. To measure an unbiased farm-specific efficiency, prices should be adjusted in an imperfect market. To examine this issue, a shadow-price profit frontier was applied to a sample of 860 Iranian small intensive dairy farms surveyed in 2005-06 in order to calculate profit efficiency of individual dairy farmers. This adjusted measure was then compared with that of unadjusted measure that assumes undistorted market. A multiple general linear model (GLM) technique was applied to the data to examine the multiple effects of pure-bred animals, and the used farm capacity on profit efficiency indices. The mean value of adjusted profit efficiency was 0.40, significantly different from the latter measure, i.e. 0.72, revealing overstating efficiency by ignoring imperfect structure of market. The difference between the figures is attributed to an index of market efficiency that was estimated of 46% in average. The number of pure-bred animals in the herd was found to affect the profit efficiency indices. Regardless of their characteristics, all the farms can gain from correcting the distortion in milk market, where small and average- sized farms are domain farms in the country.
    Keywords: profit efficiency, dairy farms, Iran, Agribusiness, Livestock Production/Industries, Research Methods/ Statistical Methods, C31, N55, Q12,
    Date: 2009–08–24
  6. By: Jouili, Mustapha
    Abstract: In Tunisia, small and medium-sized family farms dominate agriculture. From the early 80s, with the introduction of the Structural Adjustment Program (SAP), the conditions of production and reproduction of small farms have radically changed. In addition to the unfavorable trend of the prices, these farms are increasingly excluded from credit, land and support services. The ultimate consequence is a tendency in real incomes to decline, particularly sharp for small farms in the arid regions of the country. Faced with this degradation, small farms have developed mechanisms of adaptation or regulation allowing them to survive and, even in certain cases, to ensure more than a simple reproduction. But, it seems that the limits of these mechanisms of resistance have already reached or almost. All the indications suggest that the changes observed will lead the majority of these farmers to abandon their land and to undertake the path of proletarianization. However, other factors must be taken into account. The absence of any alternative of employment and stable income, in other activities, condemns small farms to remain in poverty and insecurity.
    Keywords: agriculture, agricultural policy, small farms, Tunisia, Agricultural and Food Policy, Consumer/Household Economics, Q10, Q12, Q18,
    Date: 2009–08–20

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