In the last decade, climate change, Covid-19, and several international conflicts have created significant disruptions to global and regional supply chains, leading to a re-evaluation of the benefits of globalisation. Modelling food trade as network graphs, this study spotlights the effects of these shocks, on the structure, flow and evolution of food supply chains. Network centrality measures show substantial changes in the influence exerted by China, Russia, and the United States, among others. Using machine learning, community detection and global metrics such as clustering further detail the structural changes in the trade network. Differences between systemic and idiosyncratic shocks are also discussed.
{"title":"Friendshoring in global food supply chains","authors":"Savin Khadka, Munisamy Gopinath, Feras A Batarseh","doi":"10.1093/erae/jbae031","DOIUrl":"https://doi.org/10.1093/erae/jbae031","url":null,"abstract":"In the last decade, climate change, Covid-19, and several international conflicts have created significant disruptions to global and regional supply chains, leading to a re-evaluation of the benefits of globalisation. Modelling food trade as network graphs, this study spotlights the effects of these shocks, on the structure, flow and evolution of food supply chains. Network centrality measures show substantial changes in the influence exerted by China, Russia, and the United States, among others. Using machine learning, community detection and global metrics such as clustering further detail the structural changes in the trade network. Differences between systemic and idiosyncratic shocks are also discussed.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"1 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2025-01-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142924961","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}
Farmland prices have been surging worldwide; yet little is known about the particular strong surges in the upper quantiles of price distribution. We investigate by quantile how the composition of the farmland sales and agents’ valuation of land characteristics contribute to these price developments. Using farmland transactions from Brandenburg, Germany, we decompose the price surges between 2008–09 and 2017–18 by combining unconditional quantile regressions with propensity score reweighting. Our results show an increased valuation of land characteristics, e.g. soil quality, and their responsibility for about 25% of the price surges in the upper (>75%) quantiles of price distribution.
{"title":"What moves farmland markets: decomposing the price surge in eastern Germany","authors":"Tim Hainbach, Silke Hüttel, Axel Werwatz","doi":"10.1093/erae/jbae029","DOIUrl":"https://doi.org/10.1093/erae/jbae029","url":null,"abstract":"Farmland prices have been surging worldwide; yet little is known about the particular strong surges in the upper quantiles of price distribution. We investigate by quantile how the composition of the farmland sales and agents’ valuation of land characteristics contribute to these price developments. Using farmland transactions from Brandenburg, Germany, we decompose the price surges between 2008–09 and 2017–18 by combining unconditional quantile regressions with propensity score reweighting. Our results show an increased valuation of land characteristics, e.g. soil quality, and their responsibility for about 25% of the price surges in the upper (>75%) quantiles of price distribution.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"310 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-12-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142888141","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 explores how agrobiodiversity at both local and regional scales impacts farmland value across five Mediterranean countries in the EU. Previous literature has primarily addressed on-farm biodiversity and its effects on productivity and risk mitigation, yet the potential externalities of agrobiodiversity across neighboring farms remain underexplored. Using a cross-sectional Ricardian approach, we estimate the effects of agrobiodiversity, measured in terms of both crop richness and evenness, on long-term agricultural productivity. Our findings show significant non-linear relationships and substitution effects between local and regional agrobiodiversity, underscoring the need for regionally tailored biodiversity policies.
{"title":"What is the value of agrobiodiversity in southern Europe?","authors":"Lea Nicita, Robert Mendelsohn","doi":"10.1093/erae/jbae035","DOIUrl":"https://doi.org/10.1093/erae/jbae035","url":null,"abstract":"This study explores how agrobiodiversity at both local and regional scales impacts farmland value across five Mediterranean countries in the EU. Previous literature has primarily addressed on-farm biodiversity and its effects on productivity and risk mitigation, yet the potential externalities of agrobiodiversity across neighboring farms remain underexplored. Using a cross-sectional Ricardian approach, we estimate the effects of agrobiodiversity, measured in terms of both crop richness and evenness, on long-term agricultural productivity. Our findings show significant non-linear relationships and substitution effects between local and regional agrobiodiversity, underscoring the need for regionally tailored biodiversity policies.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"24 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-12-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142888146","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}
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}
Comparing randomly selected and real-world political leaders, this paper investigates the effect of leading-by-example on voluntary contributions in a linear contribution mechanism public goods game experiment with 550 residents in rural China. This setting provides a unique social structure, shaping people’s responses to leadership. We find that leading-by-example set by political leaders and randomly selected leaders increases participants’ contribution by 1.432 and 1.162 Chinese Yuan, which is an increase of approximately 22 and 18 per cent of average contributions in the control group. The difference in the effects of leading-by-example set by political leaders and randomly selected leaders is small and statistically insignificant. Contributions under the leading-by-example treatments are driven by increased contributions from leaders and mimicking behaviour of followers, although following political leaders is weaker. Our findings highlight the crucial role of leading-by-example and strong village-level institutions in the provision of public goods.
{"title":"Leading-by-example and the voluntary provision of public goods in rural areas: Experimental evidence from China","authors":"Ziming Liu, Zetian Wang, Jing Zhang, Shuyi Feng, Yuxin Zhu, Jens Rommel","doi":"10.1093/erae/jbae036","DOIUrl":"https://doi.org/10.1093/erae/jbae036","url":null,"abstract":"Comparing randomly selected and real-world political leaders, this paper investigates the effect of leading-by-example on voluntary contributions in a linear contribution mechanism public goods game experiment with 550 residents in rural China. This setting provides a unique social structure, shaping people’s responses to leadership. We find that leading-by-example set by political leaders and randomly selected leaders increases participants’ contribution by 1.432 and 1.162 Chinese Yuan, which is an increase of approximately 22 and 18 per cent of average contributions in the control group. The difference in the effects of leading-by-example set by political leaders and randomly selected leaders is small and statistically insignificant. Contributions under the leading-by-example treatments are driven by increased contributions from leaders and mimicking behaviour of followers, although following political leaders is weaker. Our findings highlight the crucial role of leading-by-example and strong village-level institutions in the provision of public goods.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"6 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-12-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142902262","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}
Machine learning (ML) methods have been proposed to improve the assessment of agricultural policies through enhanced causal inference. This study uses a simulation framework tailored to Farm Accountancy Data Network (FADN) data to scrutinize the performance of both ML and classical methods under diverse causal properties crucial for identification. Our findings reveal significant variations in performance across different treatment assignment rules, sample sizes and causal properties. Notably, the Causal Forest method consistently outperforms others in retrieving the causal effect and accurately characterizing its heterogeneity. However, the data-driven approach of ML methods proves ineffective in selecting the correct set of controls and addressing latent confounding.
{"title":"Everything under control: comparing machine learning and classical econometric impact assessment methods using FADN data","authors":"P L Brignoli, Y de Mey, C Gardebroek","doi":"10.1093/erae/jbae034","DOIUrl":"https://doi.org/10.1093/erae/jbae034","url":null,"abstract":"Machine learning (ML) methods have been proposed to improve the assessment of agricultural policies through enhanced causal inference. This study uses a simulation framework tailored to Farm Accountancy Data Network (FADN) data to scrutinize the performance of both ML and classical methods under diverse causal properties crucial for identification. Our findings reveal significant variations in performance across different treatment assignment rules, sample sizes and causal properties. Notably, the Causal Forest method consistently outperforms others in retrieving the causal effect and accurately characterizing its heterogeneity. However, the data-driven approach of ML methods proves ineffective in selecting the correct set of controls and addressing latent confounding.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"36 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-11-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142902259","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}
This study employs a state-of-the-art econometric methodology to investigate the relationship between firm productivity and innovation, considering the spatial heterogeneity of firms and locations. It examines significant variations in productivity and production technologies among firms and locations within Norwegian food and beverage (F&B) manufacturing. Analysing data from 336 firms over 12 years, our findings indicate that geographical location influences production processes, productivity and productivity persistence. This research contributes to existing knowledge by emphasising the influence of spatial heterogeneity on productivity and innovation in the F&B industry. It also recommends integrating geographical variations into regional development policies and firm-level strategies.
{"title":"Spatial analysis of production technology, productivity and innovation","authors":"Fikru K Alemayehu, Subal C Kumbhakar","doi":"10.1093/erae/jbae030","DOIUrl":"https://doi.org/10.1093/erae/jbae030","url":null,"abstract":"This study employs a state-of-the-art econometric methodology to investigate the relationship between firm productivity and innovation, considering the spatial heterogeneity of firms and locations. It examines significant variations in productivity and production technologies among firms and locations within Norwegian food and beverage (F&B) manufacturing. Analysing data from 336 firms over 12 years, our findings indicate that geographical location influences production processes, productivity and productivity persistence. This research contributes to existing knowledge by emphasising the influence of spatial heterogeneity on productivity and innovation in the F&B industry. It also recommends integrating geographical variations into regional development policies and firm-level strategies.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"323 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-11-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142902267","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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