Halefom Yigzaw Nigus, Pierre Mohnen, Eleonora Nillesen
This study examines the relationship between market experience and the adoption of risky but profitable agricultural technologies and explores the role of demand-side barriers. Using survey and incentivized experimental data, we find that market experience is significantly associated with increased adoption of improved agricultural technologies. Furthermore, we find that market experience is linked to reduced risk aversion and a stronger internal locus of control, which, in turn, are associated with higher technology adoption. Our findings imply that policies aimed at increasing farmers’ investment in improved agricultural technologies benefit not only from providing access to these technologies but also from addressing psychological barriers.
{"title":"Market experience and agricultural technology adoption: the role of risk aversion and locus of control","authors":"Halefom Yigzaw Nigus, Pierre Mohnen, Eleonora Nillesen","doi":"10.1093/erae/jbae033","DOIUrl":"https://doi.org/10.1093/erae/jbae033","url":null,"abstract":"This study examines the relationship between market experience and the adoption of risky but profitable agricultural technologies and explores the role of demand-side barriers. Using survey and incentivized experimental data, we find that market experience is significantly associated with increased adoption of improved agricultural technologies. Furthermore, we find that market experience is linked to reduced risk aversion and a stronger internal locus of control, which, in turn, are associated with higher technology adoption. Our findings imply that policies aimed at increasing farmers’ investment in improved agricultural technologies benefit not only from providing access to these technologies but also from addressing psychological barriers.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"145 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-12-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142841573","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study evaluated the implications of the Innovation for Agribusiness (InovAgro) value chain interventions (VCIs) on farmers’ input use, market information access and land access. We used a spatial identification strategy to classify farmers as beneficiary or non-beneficiary farmers. The study used a FFs DiD analysis on a matched sample using the three-wave panel data. Our findings show that InovAgro VCIs have a positive and significant effect on beneficiary farmers’ use of yield-boosting agricultural inputs, productivity and access to agricultural market information. Our findings also show that simultaneous exposure to all three VCIs under the complete package had a positive effect on overall farmer assets.
{"title":"Agribusiness innovation, value chain interventions, farmer input use, agricultural productivity, land access and asset ownership","authors":"Mulubrhan Amare, Helder Zavale, Jenny Smart","doi":"10.1093/erae/jbae027","DOIUrl":"https://doi.org/10.1093/erae/jbae027","url":null,"abstract":"This study evaluated the implications of the Innovation for Agribusiness (InovAgro) value chain interventions (VCIs) on farmers’ input use, market information access and land access. We used a spatial identification strategy to classify farmers as beneficiary or non-beneficiary farmers. The study used a FFs DiD analysis on a matched sample using the three-wave panel data. Our findings show that InovAgro VCIs have a positive and significant effect on beneficiary farmers’ use of yield-boosting agricultural inputs, productivity and access to agricultural market information. Our findings also show that simultaneous exposure to all three VCIs under the complete package had a positive effect on overall farmer assets.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"48 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-11-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142753581","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Frank Asche, Ursula Landazuri-Tveteraas, Atle Oglend, Nita Santika, Hans-Martin Straume
Agglomeration externality is a feature that has received limited attention in food production supply chains. Using highly disaggregated trade data, this paper investigates the presence of regional agglomeration effects in Norwegian seafood exports. Results indicate strong agglomeration effects in the exports of both farmed and harvested seafood at the region–product–destination level. Regional agglomeration of exporters affects the firms through different margins. In both industries, increased agglomeration results in larger volumes, while aquaculture exporters experience a small, negative, price effect. The largest firms, both in the number of employees and size of product portfolio, export most. We also document that agglomeration is important in explaining the creation of new regional product-destination-specific trade relationships, indicating the presence of regional spillover effects.
{"title":"Spillover effects from agglomeration in seafood exports","authors":"Frank Asche, Ursula Landazuri-Tveteraas, Atle Oglend, Nita Santika, Hans-Martin Straume","doi":"10.1093/erae/jbae028","DOIUrl":"https://doi.org/10.1093/erae/jbae028","url":null,"abstract":"Agglomeration externality is a feature that has received limited attention in food production supply chains. Using highly disaggregated trade data, this paper investigates the presence of regional agglomeration effects in Norwegian seafood exports. Results indicate strong agglomeration effects in the exports of both farmed and harvested seafood at the region–product–destination level. Regional agglomeration of exporters affects the firms through different margins. In both industries, increased agglomeration results in larger volumes, while aquaculture exporters experience a small, negative, price effect. The largest firms, both in the number of employees and size of product portfolio, export most. We also document that agglomeration is important in explaining the creation of new regional product-destination-specific trade relationships, indicating the presence of regional spillover effects.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"13 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-11-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142678350","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Our paper investigates productivity, output growth and total factor productivity (TFP) growth using a novel single-index smooth-coefficient stochastic frontier approach and two firm-level datasets respectively from the high technology (high-tech) manufacturing and Knowledge Intensive Business Services (KIBS) sectors in Norway. The approach considers input productivity and technical inefficiency to be flexible functions of production environmental variables indexed with unknown parameters for more precise estimation of marginal effects of these variables on the frontier and inefficiency. Output growth is decomposed into technical change (TC), input-driven component (IDC) and efficiency change (EC), while TFP growth is decomposed into TC, scale component and EC. The primary objective is to (i) maximise output through the frontier and efficiency channels and (ii) enhance productivity growth through such channels as technical progress and efficiency improvement, specifically tailored for the manufacturing and services industries. The empirical results reveal substantial heterogeneity in technology across firms. Overall speaking, geographical industrial concentration, export intensity and urbanisation positively influence output in both sectors. Technical progress contributes to TFP growth in both sectors; however, TC is biased towards capital in the high-tech sector and driven by labour in the KIBS sector. In addition to TC, TFP growth in the high-tech and KIBS sectors also benefits from EC and IDC, respectively.
{"title":"Productivity and growth decomposition: a novel single-index smooth-coefficient stochastic frontier approach","authors":"Kai Sun, Subal C Kumbhakar, Gudbrand Lien","doi":"10.1093/erae/jbae024","DOIUrl":"https://doi.org/10.1093/erae/jbae024","url":null,"abstract":"Our paper investigates productivity, output growth and total factor productivity (TFP) growth using a novel single-index smooth-coefficient stochastic frontier approach and two firm-level datasets respectively from the high technology (high-tech) manufacturing and Knowledge Intensive Business Services (KIBS) sectors in Norway. The approach considers input productivity and technical inefficiency to be flexible functions of production environmental variables indexed with unknown parameters for more precise estimation of marginal effects of these variables on the frontier and inefficiency. Output growth is decomposed into technical change (TC), input-driven component (IDC) and efficiency change (EC), while TFP growth is decomposed into TC, scale component and EC. The primary objective is to (i) maximise output through the frontier and efficiency channels and (ii) enhance productivity growth through such channels as technical progress and efficiency improvement, specifically tailored for the manufacturing and services industries. The empirical results reveal substantial heterogeneity in technology across firms. Overall speaking, geographical industrial concentration, export intensity and urbanisation positively influence output in both sectors. Technical progress contributes to TFP growth in both sectors; however, TC is biased towards capital in the high-tech sector and driven by labour in the KIBS sector. In addition to TC, TFP growth in the high-tech and KIBS sectors also benefits from EC and IDC, respectively.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"10 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-11-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142670880","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Bingyu Huangfu, Xuwen Gao, Xinjie Shi, Songqing Jin
Motivated by the emphasis on securing property rights as an important tool for the efficient allocation of resources, including land and labour, we use three rounds of China Rural Household Panel Survey data to assess the impact of a land certification programme (LCP) on the labour and land allocation in rural China. We find that the LCP results in increased rural–urban migration, more active land rental markets, as well as higher household income and consumption in rural China. These effects vary with age and are larger for younger individuals and households with heads aged 50 years or younger. Improving property rights could be a central task for the Chinese government to tackle issues related to labour and land misallocation.
{"title":"Move out of the land: certification and migration in China","authors":"Bingyu Huangfu, Xuwen Gao, Xinjie Shi, Songqing Jin","doi":"10.1093/erae/jbae021","DOIUrl":"https://doi.org/10.1093/erae/jbae021","url":null,"abstract":"Motivated by the emphasis on securing property rights as an important tool for the efficient allocation of resources, including land and labour, we use three rounds of China Rural Household Panel Survey data to assess the impact of a land certification programme (LCP) on the labour and land allocation in rural China. We find that the LCP results in increased rural–urban migration, more active land rental markets, as well as higher household income and consumption in rural China. These effects vary with age and are larger for younger individuals and households with heads aged 50 years or younger. Improving property rights could be a central task for the Chinese government to tackle issues related to labour and land misallocation.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"13 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-11-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142597519","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Recall biases in retrospective self-reported survey data have important implications for empirical research. We leverage the survey design literature and test three strategies to attenuate mental anchoring in retrospective data collection: question ordering, retrieval cues and aggregate (community) anchoring. We focus on maize production and happiness reports among smallholder farmers in Malawi. Asking for retrospective before concurrent data on average reduces recall bias (i.e. the deviation of the recalled versus the concurrent outcome reported in the previous period) by 34 per cent for maize production, a meaningful improvement with no increase in data collection costs. Retrieval cues are less successful and community anchors can exacerbate the bias. None of the strategies help to ease the recall bias for happiness reports.
{"title":"Can survey design reduce anchoring bias in recall data? Evidence from smallholder farmers in Malawi","authors":"Susan Godlonton, Manuel A Hernandez, Cynthia Paz","doi":"10.1093/erae/jbae026","DOIUrl":"https://doi.org/10.1093/erae/jbae026","url":null,"abstract":"Recall biases in retrospective self-reported survey data have important implications for empirical research. We leverage the survey design literature and test three strategies to attenuate mental anchoring in retrospective data collection: question ordering, retrieval cues and aggregate (community) anchoring. We focus on maize production and happiness reports among smallholder farmers in Malawi. Asking for retrospective before concurrent data on average reduces recall bias (i.e. the deviation of the recalled versus the concurrent outcome reported in the previous period) by 34 per cent for maize production, a meaningful improvement with no increase in data collection costs. Retrieval cues are less successful and community anchors can exacerbate the bias. None of the strategies help to ease the recall bias for happiness reports.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"3 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-11-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142594789","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The increase in farmland prices in many parts of the world over the past decade has sparked discussions about whether non-farmers pay higher prices for farmland. This study uses a causal machine learning approach with a rich data set of land transactions in Germany to quantify the potential price premium paid by non-farmers. By applying the causal forest method, we uncover the heterogeneity of price premiums and reveal moderating effects of covariates. We find that the average positive price premium by non-farmers decreases with parcel size and distance to a highway exit.
{"title":"Do non-farmers pay more for land than farmers?","authors":"Lorenz Schmidt, Martin Odening, Matthias Ritter","doi":"10.1093/erae/jbae023","DOIUrl":"https://doi.org/10.1093/erae/jbae023","url":null,"abstract":"The increase in farmland prices in many parts of the world over the past decade has sparked discussions about whether non-farmers pay higher prices for farmland. This study uses a causal machine learning approach with a rich data set of land transactions in Germany to quantify the potential price premium paid by non-farmers. By applying the causal forest method, we uncover the heterogeneity of price premiums and reveal moderating effects of covariates. We find that the average positive price premium by non-farmers decreases with parcel size and distance to a highway exit.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"4 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-10-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142440238","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We study how rural households in Ethiopia adapt to droughts through labour reallocation. Using three waves of panel data and exploiting spatio-temporal variations in drought exposure, we find that households reduce on-farm work and increase off-farm self-employment in response to both short-term and persistent droughts, without abandoning family farming. Diversification into off-farm activities is driven by drought-related productivity declines in agriculture and contributes to consumption smoothing and food security. Households with better access to financial services are more likely to reallocate labour off-farm. Our results highlight the importance of strengthening the rural non-farm economy to enhance rural households’ climate resilience.
{"title":"Drought shocks and labour reallocation in rural Africa: evidence from Ethiopia","authors":"Arnold L Musungu, Zaneta Kubik, Matin Qaim","doi":"10.1093/erae/jbae020","DOIUrl":"https://doi.org/10.1093/erae/jbae020","url":null,"abstract":"We study how rural households in Ethiopia adapt to droughts through labour reallocation. Using three waves of panel data and exploiting spatio-temporal variations in drought exposure, we find that households reduce on-farm work and increase off-farm self-employment in response to both short-term and persistent droughts, without abandoning family farming. Diversification into off-farm activities is driven by drought-related productivity declines in agriculture and contributes to consumption smoothing and food security. Households with better access to financial services are more likely to reallocate labour off-farm. Our results highlight the importance of strengthening the rural non-farm economy to enhance rural households’ climate resilience.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"68 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-08-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141908965","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The replication crisis in empirical research calls for a more mindful approach to how we apply and report statistical models. For empirical research to have a lasting (policy) impact, these concerns are crucial. In this paper, we present Probabilistic Programming (PP) as a way forward. The PP workflow with an explicit data-generating process enhances the communication of model assumptions, code testing and consistency between theory and estimation. By simplifying Bayesian analysis, it also offers advantages for the interpretation, communication and modelling of uncertainty. We outline the advantages of PP to encourage its adoption in our community.
{"title":"Probabilistic programming for embedding theory and quantifying uncertainty in econometric analysis","authors":"Hugo Storm, Thomas Heckelei, Kathy Baylis","doi":"10.1093/erae/jbae016","DOIUrl":"https://doi.org/10.1093/erae/jbae016","url":null,"abstract":"The replication crisis in empirical research calls for a more mindful approach to how we apply and report statistical models. For empirical research to have a lasting (policy) impact, these concerns are crucial. In this paper, we present Probabilistic Programming (PP) as a way forward. The PP workflow with an explicit data-generating process enhances the communication of model assumptions, code testing and consistency between theory and estimation. By simplifying Bayesian analysis, it also offers advantages for the interpretation, communication and modelling of uncertainty. We outline the advantages of PP to encourage its adoption in our community.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"15 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141521615","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper employs the recently proposed climate penalty model to estimate season-specific climate change impacts on Chinese winter wheat yields and also reveals the effects of long-run adaptions by comparing the short-run and long-run estimates identified from the model. We find that Spring freezing days are critical as we estimate small yield gains when considering a reduction in the number of freezing days (induced by global warming), as opposed to large yield losses when such effects are omitted. We also find substantial influences of adaptation effects that could reverse the sign of climate change impacts.
{"title":"Climate change and winter wheat yields: the roles of freezing days and long-run adaptations","authors":"Yabin Da, Yangyang Xu, Fujin Yi, Bruce McCarl","doi":"10.1093/erae/jbae015","DOIUrl":"https://doi.org/10.1093/erae/jbae015","url":null,"abstract":"This paper employs the recently proposed climate penalty model to estimate season-specific climate change impacts on Chinese winter wheat yields and also reveals the effects of long-run adaptions by comparing the short-run and long-run estimates identified from the model. We find that Spring freezing days are critical as we estimate small yield gains when considering a reduction in the number of freezing days (induced by global warming), as opposed to large yield losses when such effects are omitted. We also find substantial influences of adaptation effects that could reverse the sign of climate change impacts.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"51 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141185136","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"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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