Abstract The grain storage held by rural households, given its significant quantity and crucial role in household operations, plays a vital role in ensuring food security. This paper constructs a theoretical framework that encompasses household decisions regarding off‐farm employment, savings, and consumption, as well as the production, selling, and storage of grain. The theoretical model, driven by motivations of risk aversion and temporal price arbitrage, highlights the importance of market liberalization and off‐farm employment in shaping rural household grain storage decisions. Utilizing household‐level panel data from 2003 to 2020, we empirically validate that both market liberalization and off‐farm employment contribute to the reduction of household grain storage. However, these effects exhibit heterogeneity depending on the scale of household grain production and the specific crops cultivated. Significant impacts of market liberalization are observed among large‐scale producers who have greater exposure to the market. Furthermore, the storage of rice and corn decreases with an increase in off‐farm employment.
{"title":"Household grain storage decision in a transitory economy: Market liberalization and off‐farm employment","authors":"Xiaoyun Wei, Qingen Gai, Qinghua Shi","doi":"10.1111/rode.13068","DOIUrl":"https://doi.org/10.1111/rode.13068","url":null,"abstract":"Abstract The grain storage held by rural households, given its significant quantity and crucial role in household operations, plays a vital role in ensuring food security. This paper constructs a theoretical framework that encompasses household decisions regarding off‐farm employment, savings, and consumption, as well as the production, selling, and storage of grain. The theoretical model, driven by motivations of risk aversion and temporal price arbitrage, highlights the importance of market liberalization and off‐farm employment in shaping rural household grain storage decisions. Utilizing household‐level panel data from 2003 to 2020, we empirically validate that both market liberalization and off‐farm employment contribute to the reduction of household grain storage. However, these effects exhibit heterogeneity depending on the scale of household grain production and the specific crops cultivated. Significant impacts of market liberalization are observed among large‐scale producers who have greater exposure to the market. Furthermore, the storage of rice and corn decreases with an increase in off‐farm employment.","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":"38 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-11-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135820039","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract An overwhelming body of evidence supports a negative relationship between women's empowerment and fertility. In this paper, we evaluate whether this relationship holds in a setting with a high degree of son preference and limited access to abortion services by focusing on rural India. We exploit the reforms to the Hindu Succession Act that improved female empowerment by mandating equal inheritance rights for women to assess the reform's impact on women's fertility. Using NFHS‐3 data and a difference‐in‐differences estimation, our results show that women who benefitted from the reform had more children than their counterparts. We attribute this increase in fertility to women's ability to use the stopping rule to achieve son preference. Finally, women impacted by the reform had a higher proportion of sons for a given family size, indicating stronger inherent son preference among treated women.
{"title":"Reassessing the relationship between women's empowerment and fertility: Evidence from India","authors":"Nayana Bose, Shreyasee Das","doi":"10.1111/rode.13066","DOIUrl":"https://doi.org/10.1111/rode.13066","url":null,"abstract":"Abstract An overwhelming body of evidence supports a negative relationship between women's empowerment and fertility. In this paper, we evaluate whether this relationship holds in a setting with a high degree of son preference and limited access to abortion services by focusing on rural India. We exploit the reforms to the Hindu Succession Act that improved female empowerment by mandating equal inheritance rights for women to assess the reform's impact on women's fertility. Using NFHS‐3 data and a difference‐in‐differences estimation, our results show that women who benefitted from the reform had more children than their counterparts. We attribute this increase in fertility to women's ability to use the stopping rule to achieve son preference. Finally, women impacted by the reform had a higher proportion of sons for a given family size, indicating stronger inherent son preference among treated women.","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":"189 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135371662","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract This paper examines the effect of an industrial policy in China named the VAT export tax on product upgrading. In particular, we use Chinese transaction data during 2003–2010 to isolate the causal impact of the exogenous variation of VAT refund and within the city‐product quality change in HS6 exported products. Our identification strategy entails the utilization of duality of the Chinese trade system to isolate the impact of the rebate by comparing a group of trade flows exempt from the refund and another that remains eligible. Our results suggest an increase in product upgrading in response to an increase in VAT refund. In this study, we also introduce the credit constraint to understand the change in quality. The industries that are confronted with tighter credit constraints impel firms to settle for low‐quality products. The model demonstrates that VAT refund provided a counterbalance force to credit constraints, thereby prompting firms to adjust quality. By increasing the refund granted to ordinary traders, firms leverage this excess cash flow to invest (in a fixed asset or innovative project) and improve the quality of products. This effect is reinforced for products exported to developed countries, heterogeneous products, or from larger industries. The Chinese policymakers formally introduced environmental objectives under the 10th and 11th FYP, respectively. The Party leaders put substantial weight on promoting products embedded with high‐added value or technological content. At the same time, they underscored the willingness to downscale the export share of energy‐intensive or polluting industries. We evaluate whether environmental and economic concern impacts product upgrading. According to the results of this study, the VAT refund is effective only for products produced in “cleaner” industries, for products necessitating technical skills, a range of know‐how in manufacturing, and high‐level technology or engaging in research and development activities. Our paper introduces a new and unexplored variable in the trade literature. We use the stock of non‐trade barriers to explicate the change in product quality. In the import market, Chinese exporters comply with the change in regulation by making upward adjustments in the quality.
{"title":"Value‐added export tax policy, credit constraints, and quality: Evidence from China","authors":"Thomas Pernet","doi":"10.1111/rode.13067","DOIUrl":"https://doi.org/10.1111/rode.13067","url":null,"abstract":"Abstract This paper examines the effect of an industrial policy in China named the VAT export tax on product upgrading. In particular, we use Chinese transaction data during 2003–2010 to isolate the causal impact of the exogenous variation of VAT refund and within the city‐product quality change in HS6 exported products. Our identification strategy entails the utilization of duality of the Chinese trade system to isolate the impact of the rebate by comparing a group of trade flows exempt from the refund and another that remains eligible. Our results suggest an increase in product upgrading in response to an increase in VAT refund. In this study, we also introduce the credit constraint to understand the change in quality. The industries that are confronted with tighter credit constraints impel firms to settle for low‐quality products. The model demonstrates that VAT refund provided a counterbalance force to credit constraints, thereby prompting firms to adjust quality. By increasing the refund granted to ordinary traders, firms leverage this excess cash flow to invest (in a fixed asset or innovative project) and improve the quality of products. This effect is reinforced for products exported to developed countries, heterogeneous products, or from larger industries. The Chinese policymakers formally introduced environmental objectives under the 10th and 11th FYP, respectively. The Party leaders put substantial weight on promoting products embedded with high‐added value or technological content. At the same time, they underscored the willingness to downscale the export share of energy‐intensive or polluting industries. We evaluate whether environmental and economic concern impacts product upgrading. According to the results of this study, the VAT refund is effective only for products produced in “cleaner” industries, for products necessitating technical skills, a range of know‐how in manufacturing, and high‐level technology or engaging in research and development activities. Our paper introduces a new and unexplored variable in the trade literature. We use the stock of non‐trade barriers to explicate the change in product quality. In the import market, Chinese exporters comply with the change in regulation by making upward adjustments in the quality.","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":"7 5-6","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135267245","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Using three‐stage least squares, the present study examines how the household expenditure on socialising activities, including eating out, entertainment and religious and social obligations changed during the COVID‐19 pandemic in India. Our results suggest a negative impact of COVID‐19 cases on the socialising expenditure shares of the households. Further, a higher spending on food is associated with a lower spending on socialising. We find that during the crisis, the increased food expenditures entails lower discretionary expenditures. Or, in other words, they are substitutes. A quadratic socialising expenditures curve confirms the expenditure variability and the wide‐ranging responses of households belonging to different income groups to the COVID‐19 induced economic shocks. The rising prices of food and other necessities required the households to spend larger shares of their incomes on necessary goods, and curtail the consumption of leisure goods. The role of maintaining a healthy work‐life balance, active social network as well as leisure activities to be content in life is well documented. Hence a reduced expenditure on socialising due to the pandemic, may throw light on some larger and significant concerns such as the deteriorating mental health of individuals and greater stress and frustration.
{"title":"Recreation and social obligations during <scp>Covid</scp> in <scp>India</scp>: Does social distancing act as a barrier?","authors":"Nidhi Kaicker, Aashi Gupta, Raghav Gaiha","doi":"10.1111/rode.13064","DOIUrl":"https://doi.org/10.1111/rode.13064","url":null,"abstract":"Abstract Using three‐stage least squares, the present study examines how the household expenditure on socialising activities, including eating out, entertainment and religious and social obligations changed during the COVID‐19 pandemic in India. Our results suggest a negative impact of COVID‐19 cases on the socialising expenditure shares of the households. Further, a higher spending on food is associated with a lower spending on socialising. We find that during the crisis, the increased food expenditures entails lower discretionary expenditures. Or, in other words, they are substitutes. A quadratic socialising expenditures curve confirms the expenditure variability and the wide‐ranging responses of households belonging to different income groups to the COVID‐19 induced economic shocks. The rising prices of food and other necessities required the households to spend larger shares of their incomes on necessary goods, and curtail the consumption of leisure goods. The role of maintaining a healthy work‐life balance, active social network as well as leisure activities to be content in life is well documented. Hence a reduced expenditure on socialising due to the pandemic, may throw light on some larger and significant concerns such as the deteriorating mental health of individuals and greater stress and frustration.","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":"15 4","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135268208","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Policy emphasis on financial inclusion and deepening has shifted away from measures capturing formal financial services only and towards the development of more inclusive financial markets which account for both formal and informal services. This study examines the effect of financial inclusion and vulnerability coping strategies on multidimensional poverty, where the conceptualisation of financial inclusion is based on four perspectives—(i) one that focuses on only the formal financial sector, (ii) another that concentrates on only the informal financial sector, (iii) one that considers only the mobile money sector and (iv) finally, one that combines all financial markets (i.e., formal and informal including mobile money). Findings show that the conceptualisation of financial inclusion does not only matter in identifying the financially included but also has an implication on how financial inclusion influences multidimensional poverty. Financial inclusion measures that use only formal financial products and services understate their potential effects on multidimensional poverty, thus, justifying the need for a financial inclusion measure that considers both formal and informal sectors. Incorporating informal financial products and services in the measure reduces multidimensional poverty more for female‐headed households and those in rural settings. Households' adoption of vulnerability coping strategies has the potential to reduce the likelihood of being multidimensionally poor.
{"title":"Financial inclusion, vulnerability coping strategies and multidimensional poverty: Does conceptualisation of financial inclusion matter?","authors":"Chei Bukari, Isaac Koomson, Samuel Kobina Annim","doi":"10.1111/rode.13062","DOIUrl":"https://doi.org/10.1111/rode.13062","url":null,"abstract":"Abstract Policy emphasis on financial inclusion and deepening has shifted away from measures capturing formal financial services only and towards the development of more inclusive financial markets which account for both formal and informal services. This study examines the effect of financial inclusion and vulnerability coping strategies on multidimensional poverty, where the conceptualisation of financial inclusion is based on four perspectives—(i) one that focuses on only the formal financial sector, (ii) another that concentrates on only the informal financial sector, (iii) one that considers only the mobile money sector and (iv) finally, one that combines all financial markets (i.e., formal and informal including mobile money). Findings show that the conceptualisation of financial inclusion does not only matter in identifying the financially included but also has an implication on how financial inclusion influences multidimensional poverty. Financial inclusion measures that use only formal financial products and services understate their potential effects on multidimensional poverty, thus, justifying the need for a financial inclusion measure that considers both formal and informal sectors. Incorporating informal financial products and services in the measure reduces multidimensional poverty more for female‐headed households and those in rural settings. Households' adoption of vulnerability coping strategies has the potential to reduce the likelihood of being multidimensionally poor.","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":"31 6","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135462360","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract We investigate the effects of giant oil discovery and boom‐bust price cycle on manufacturing using a large dataset of up to 49,481 two‐digit industry‐years across 136 countries over the period 1962 to 2012. We find that oil discovery reduces growth in manufacturing value added and wages. The effect on employment is insignificant. We also find strong association between oil discovery and manufacturing slowdown episodes. Oil price boom and bust both negatively affects manufacturing perhaps due to increasing input cost (boom) and declining demand (bust). We do not find any evidence in favour of a real exchange rate appreciation driven effect as outlined in standard Dutch Disease models. We speculate that the effect is primarily driven by an increase in the cost of locally sourced manufacturing input.
{"title":"Oil discovery, boom‐bust cycle and manufacturing slowdown: Evidence from a large industry level dataset","authors":"Nouf Alsharif, Sambit Bhattacharyya","doi":"10.1111/rode.13063","DOIUrl":"https://doi.org/10.1111/rode.13063","url":null,"abstract":"Abstract We investigate the effects of giant oil discovery and boom‐bust price cycle on manufacturing using a large dataset of up to 49,481 two‐digit industry‐years across 136 countries over the period 1962 to 2012. We find that oil discovery reduces growth in manufacturing value added and wages. The effect on employment is insignificant. We also find strong association between oil discovery and manufacturing slowdown episodes. Oil price boom and bust both negatively affects manufacturing perhaps due to increasing input cost (boom) and declining demand (bust). We do not find any evidence in favour of a real exchange rate appreciation driven effect as outlined in standard Dutch Disease models. We speculate that the effect is primarily driven by an increase in the cost of locally sourced manufacturing input.","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":"28 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136038380","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Wilson Hernández, Angelo Cozzubo, José Carlos Aguilar, Jorge M. Agüero, José Mendoza
Abstract Intimate partner violence (IPV) increased during the COVID‐19 lockdown, but few studies use national data and explore underlying mechanisms. To address this gap, we study the changes in IPV during the first ten months of the pandemic in Peru. We study the number of calls received by the national helpline for domestic violence victims, Línea 100, using an event study model. Results show that during lockdown, IPV calls experienced nonlinear variations. Calls for psychological violence showed the most significant variation, followed by those for physical violence, while no significant changes for sexual violence were identified. Prior history of violence and alcohol or drug consumption appears to be the most important underlying mechanisms. Results suggest that policy efforts during acute health and economic crises should aim at risk factors that typically predict violence and prioritize rapidly connecting survivors to quality services.
{"title":"Violence in pandemic times: The dynamic relationship between <scp>COVID</scp>‐19 and intimate partner violence","authors":"Wilson Hernández, Angelo Cozzubo, José Carlos Aguilar, Jorge M. Agüero, José Mendoza","doi":"10.1111/rode.13059","DOIUrl":"https://doi.org/10.1111/rode.13059","url":null,"abstract":"Abstract Intimate partner violence (IPV) increased during the COVID‐19 lockdown, but few studies use national data and explore underlying mechanisms. To address this gap, we study the changes in IPV during the first ten months of the pandemic in Peru. We study the number of calls received by the national helpline for domestic violence victims, Línea 100, using an event study model. Results show that during lockdown, IPV calls experienced nonlinear variations. Calls for psychological violence showed the most significant variation, followed by those for physical violence, while no significant changes for sexual violence were identified. Prior history of violence and alcohol or drug consumption appears to be the most important underlying mechanisms. Results suggest that policy efforts during acute health and economic crises should aim at risk factors that typically predict violence and prioritize rapidly connecting survivors to quality services.","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":"3 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136038378","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Based on a mathematical model and empirical test, this paper explores the incentive of income for aspirations and its channels, forging links between theory and data. Results present evidence that income significantly inspires one's aspirations, and all conclusions still hold after overcoming the interference of potential endogenous issues. In terms of channels, the “aspirations window” (a set of similar perceivable individuals) and “bandwidth load” (the mental space to think, process problems, and come up with solutions) play the mediating role in the stimulation of money; that is, low incomes will make aspirations window narrower and bandwidth load heavier, which is a momentous force behind one's aspirations failure. This paper also enlightens income distribution and the construction of internal motivation mechanisms.
{"title":"Does money bring aspirations? Evidence from China","authors":"Yue Yu, Chengkui Liu, Hao Wang, Xiaodan Lin","doi":"10.1111/rode.13065","DOIUrl":"https://doi.org/10.1111/rode.13065","url":null,"abstract":"Abstract Based on a mathematical model and empirical test, this paper explores the incentive of income for aspirations and its channels, forging links between theory and data. Results present evidence that income significantly inspires one's aspirations, and all conclusions still hold after overcoming the interference of potential endogenous issues. In terms of channels, the “aspirations window” (a set of similar perceivable individuals) and “bandwidth load” (the mental space to think, process problems, and come up with solutions) play the mediating role in the stimulation of money; that is, low incomes will make aspirations window narrower and bandwidth load heavier, which is a momentous force behind one's aspirations failure. This paper also enlightens income distribution and the construction of internal motivation mechanisms.","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":"172 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136142138","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Elvis D. Achuo, Clovis Wendji Miamo, Clémence Zite Kouhomou
Abstract Despite global concerted efforts to enhance environmental sustainability, environmental quality has continued degrading following upsurges in carbon dioxide (CO 2 ) emissions. The rising pollution emissions in recent decades have largely been blamed on the growing exploitation of natural resources and institutional dynamics. Consequently, this study empirically examines the effect of resource rents on environmental pollution. The system Generalised Method of Moments approach is adopted to analyse data for a panel of 39 developing African countries over the 1996–2020 period. The key results reveal that resource rents significantly contribute to pollution emissions in the context of African economies. This positive relationship between resource rents and environmental pollution is globally validated by the various sensitivity analysis and robustness checks. However, this relationship is divergent for alternative measures of natural resources and across sub‐regional economic blocs. Furthermore, the results reveal the critical role of good governance in modulating the environmental damaging role of natural resource dependence. Besides the key findings, the study equally highlights the importance of ICTs and the need to increase investments in green technologies and promote the consumption of clean energies. Indeed, the key findings suggest that for resource rents to effectively contribute to environmental sustainability by reducing CO 2 emissions there is need for policymakers to reinforce the legislation through the enhancement of institutional quality. Particularly, African governments should develop and reinforce strategies aimed at curbing corruption which constitutes a major obstacle to environmental sustainability.
{"title":"Resource rents and environmental pollution in developing countries: Does the quality of institutions matter?","authors":"Elvis D. Achuo, Clovis Wendji Miamo, Clémence Zite Kouhomou","doi":"10.1111/rode.13060","DOIUrl":"https://doi.org/10.1111/rode.13060","url":null,"abstract":"Abstract Despite global concerted efforts to enhance environmental sustainability, environmental quality has continued degrading following upsurges in carbon dioxide (CO 2 ) emissions. The rising pollution emissions in recent decades have largely been blamed on the growing exploitation of natural resources and institutional dynamics. Consequently, this study empirically examines the effect of resource rents on environmental pollution. The system Generalised Method of Moments approach is adopted to analyse data for a panel of 39 developing African countries over the 1996–2020 period. The key results reveal that resource rents significantly contribute to pollution emissions in the context of African economies. This positive relationship between resource rents and environmental pollution is globally validated by the various sensitivity analysis and robustness checks. However, this relationship is divergent for alternative measures of natural resources and across sub‐regional economic blocs. Furthermore, the results reveal the critical role of good governance in modulating the environmental damaging role of natural resource dependence. Besides the key findings, the study equally highlights the importance of ICTs and the need to increase investments in green technologies and promote the consumption of clean energies. Indeed, the key findings suggest that for resource rents to effectively contribute to environmental sustainability by reducing CO 2 emissions there is need for policymakers to reinforce the legislation through the enhancement of institutional quality. Particularly, African governments should develop and reinforce strategies aimed at curbing corruption which constitutes a major obstacle to environmental sustainability.","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":"55 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136359670","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract This study examines whether the Tanzanian subsidy for inorganic fertilizers and improved seeds encourages farmers to participate in the input and grain markets. Using six waves from 2008–2009 to 2020–2021 of the National Panel Survey, we investigated whether the subsidy affected farmers' purchases and expenditures for all conceivable inputs, including nonsubsidized inputs (organic fertilizers, traditional seeds, pesticides/herbicides, labor, and capital). Subsequently, we estimated the subsidy's impact on the probability of farmers selling crops and their sales revenue. In the input markets, we found that improved seeds, rather than inorganic fertilizers, played a major role in farmers' market activities. Beneficiaries who received subsidized seeds were more likely to purchase pesticides/herbicides, hire more labor, and borrow oxen and tractors to make their farmland suitable for the growth of improved seeds. In crop markets, we found that receiving both subsidized fertilizers and seeds increased the probability of farmers selling maize or paddy nearly threefold relative to the receipt of only subsidized fertilizer. Moreover, legume sales revenue also increased among seed beneficiaries through intercropping with maize and paddy.
{"title":"Do fertilizer and seed subsidies strengthen farmers' market participation? Evidence from Tanzania's subsidy program","authors":"Takefumi Fujimoto, Aya Suzuki","doi":"10.1111/rode.13061","DOIUrl":"https://doi.org/10.1111/rode.13061","url":null,"abstract":"Abstract This study examines whether the Tanzanian subsidy for inorganic fertilizers and improved seeds encourages farmers to participate in the input and grain markets. Using six waves from 2008–2009 to 2020–2021 of the National Panel Survey, we investigated whether the subsidy affected farmers' purchases and expenditures for all conceivable inputs, including nonsubsidized inputs (organic fertilizers, traditional seeds, pesticides/herbicides, labor, and capital). Subsequently, we estimated the subsidy's impact on the probability of farmers selling crops and their sales revenue. In the input markets, we found that improved seeds, rather than inorganic fertilizers, played a major role in farmers' market activities. Beneficiaries who received subsidized seeds were more likely to purchase pesticides/herbicides, hire more labor, and borrow oxen and tractors to make their farmland suitable for the growth of improved seeds. In crop markets, we found that receiving both subsidized fertilizers and seeds increased the probability of farmers selling maize or paddy nearly threefold relative to the receipt of only subsidized fertilizer. Moreover, legume sales revenue also increased among seed beneficiaries through intercropping with maize and paddy.","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":"32 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135092708","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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