Shifting frontier dynamics in Latin America

The concepts of resource frontier and commodity frontier are often treated interchangeably. This article suggests the benefits of clarifying these concepts because frontiers remain important analytics for understanding drastic land‐use changes and other socio‐environmental transformations. Based on long‐term field research in different parts of South and Central America, we use frontier concepts as heuristic devices to analyze heterogeneous frontier situations and make broader generalizations. Our synchronic and diachronic analyses of frontier dynamics elucidate different frontier modalities and shifting frontier expansions. The concept of commoditizing resource frontier is introduced to explain recent frontier‐makings in Brazilian Amazonia and Cerrado and in the Nicaraguan Río San Juan. Although earlier frontier research took a short‐term time perspective and created conceptualizations based on a single modality of a particular period, our longitudinal analysis shows that drastic changes and complex overlappings are the hallmarks of frontier dynamics.     

Modern Rice Technologies and Productivity in the Philippines: Disentangling Technology from Managerial Gaps

Using cross‐sectional farm‐level data from 3,164 rice‐farming households in the Philippines, we measure the impact of modern rice technologies on farm productivity while disentangling technology gaps (the distance between production frontiers) from managerial gaps (differences in technical efficiency). To do so, we combine a recently developed stochastic production frontier framework with impact evaluation techniques to control for biases stemming from observables and unobservables. First, we find an adequate control group using propensity score matching to mitigate the effect of biases from observable variables. Then, we test for biases that might arise from unobserved variables using a stochastic frontier framework corrected for self‐selection. Finally, we estimate meta‐frontiers to assess productivity differences between adopters and non‐adopters. The analysis shows that the adoption of certified seeds has a significant and positive impact on productivity, efficiency and net income in rice farming.     

Generalized Moments Estimation for Spatial Panel Data: Indonesian Rice Farming

We consider estimation of a panel data model where disturbances are spatially correlated in the cross-sectional dimension, based on geographic or economic proximity. When the time dimension of the data is large, spatial correlation parameters may be consistently estimated. When the time dimension is small (the usual panel data case), we develop an estimator that extends the cross-sectional model of Kelejian and Prucha . This approach is applied in a stochastic frontier framework to a panel of Indonesian rice farms where spatial correlations represent productivity shock spillovers, based on geographic proximity and weather. These spillovers affect farm-level efficiency estimation and ranking.     

Narco‐frontiers: A spatial framework for drug‐fuelled accumulation

Based on historical and ethnographic research conducted in a region of northwest Colombia and drawing on the stories of novelist Gabriel García Márquez, this article develops the analytical concept of “narco‐frontiers” to help disentangle the confusing political economy of agrarian spaces affected by the violence of the drug war. As socially produced spaces, narco‐frontiers emerge through the convergence of four interlocking processes: uneven development, internal colonialism, political violence, and narco‐fuelled dispossession. Although often depicted as “ungovernable” or “stateless” spaces, narco‐frontiers are wracked by extra‐legal regimes of rule in which the state is simply one actor among others. With the drug trade inducing violent agrarian change all over the world—from Colombia to Afghanistan, Burma to Central America—this article offers a spatial‐historical framework for understanding these dramatic transformations.     

Productivity improvement in Korean rice farming: parametric and non‐parametric analysis†

The published empirical literature on frontier production functions is dominated by two broadly defined estimation approaches – parametric and non‐parametric. Using panel data on Korean rice production, parametric and non‐parametric production frontiers are estimated and compared with estimated productivity. The non‐parametric approach employs two alternative measures based on the Malmquist index and the Luenberger indicator, while the parametric approach is closely related to the time‐variant efficiency model. Productivity measures differ considerably between these approaches. It is discovered that measures of efficiency change are more sensitive to the choice of the model than are measures of technical change. Both approaches reveal that the main sources of growth in Korean rice farming have been technical change and productivity improvements in regions of the country that have been associated with low efficiency.     

Patterns in Technical Efficiency and Technical Change at the Farm‐level in England and Wales, 1982–2002

English and Welsh farm‐level survey data are employed to estimate stochastic frontier production functions for eight different farm types (cereal, dairy, sheep, beef, poultry, pigs, general cropping and mixed) for the period 1982 to 2002. Differences in the relative efficiency of farms are explored by the simultaneous estimation of a model of technical inefficiency effects. The analysis shows that, generally, farms of all types are relatively efficient with a large proportion of farms operating close to the production frontier. However, whilst the frontier farms of all types are becoming more efficient through time because of technical change, it is also the case that the efficiency of the average farm for most farm types is increasing at a slower rate. In addition, annual mean levels of efficiency for most farm types have declined between 1982 and 2002. The factors that consistently appear to have a statistically significant effect on differences in efficiency between farms are: farm or herd size, farm debt ratios, farmer age, levels of specialisation and ownership status.     

Assessing Total Factor Productivity Growth in Sub‐Saharan African Agriculture

The importance of the agricultural sector in the economic development process is well known. Improvements in agricultural productivity are often found to spill into other areas of a developing economy, potentially improving the standards of living of urban and rural workers alike. Given the importance of this sector, accurate measures of total factor productivity (TFP) across countries can be helpful in identifying conditions, institutions or policies that promote agricultural development. In this article, we estimate TFP growth in agriculture for a panel of 39 sub‐Saharan African countries from 1961 to 2007. We also develop a set of development outcome measures theoretically consistent with strong agricultural performance to serve as external validation of our results. We find that three estimation methods (stochastic frontier, generalised maximum entropy, and Bayesian efficiency) generate relative rankings that are consistent with the development outcome measures, providing external validation of the methods. However, the data envelopment analysis approach performs poorly in this regard.     

Estimating multiproduct and product‐specific scale economies for agricultural cooperatives

This article estimates multiproduct and product‐specific scale economies, scope economies, and cost efficiency with single and annual cost frontiers using a nonparametric approach. Multiproduct scale and scope economies are found that suggests increasing scale and product diversification can reduce cost for agricultural cooperatives. Many agricultural cooperatives experience economies of scale indicating that variable returns to scale as opposed to constant returns to scale is the appropriate technology for modeling agricultural cooperatives. Product‐specific scale economies for all outputs are close to one indicating that individual outputs are operating close to constant returns to scale. Annual frontier estimates show that cooperatives have become less cost efficient over time, but scale and scope economies remain relatively consistent across years. Further, results show that economic measures obtained from the single frontier are statistically different from those measures calculated from annual frontiers, suggesting that the cost frontier has shifted over time. The trade‐off between cost efficiency and multiproduct scale economies indicates that smaller cooperatives can reduce a higher percentage of cost by increasing the scale of operations rather than just becoming cost efficient. Because larger incentives exist for small cooperatives to increase scale, mergers will likely continue until economies of scale are exhausted in the industry.     

Off‐farm labor market decisions and agricultural shocks among rural households in Kenya

Using household level data from rural Kenya, this article explores whether and how farm households respond to unfavorable agricultural production environments, including any ex post adjustments in off‐farm labor supply in response to unexpected weather shocks. While controlling for a wide range of educational, demographic, and other locational factors, we examine how long‐term weather conditions and specific rainfall shocks influence a household's decision to engage in, and their earnings from, the off‐farm labor market. We find that rural households engage in off‐farm work as a long‐term strategy to deal with the effects of anticipated weather conditions on their farming operations. The analysis does not reveal major short‐term adjustments in off‐farm engagement as a result of specific, unexpected rainfall shocks; these households do however rely on remittance income and petty agricultural wage labor under these circumstances. Holding other factors constant, and conditional on participation, households in areas with a more productive local agriculture tend to earn more from off‐farm work especially in the informal/business sector than their counterparts in regions with a less productive agriculture. As expected, a vibrant local economy in the form of public investment increases the probability of off‐farm participation.     

The Cost Effects of Government‐Subsidised Credit: Evidence from Farmers’ Credit Unions in Taiwan

We investigate government‐subsidised credit effects on participating financial institutions’ performance in terms of cost efficiency. Using farmers’ credit unions in Taiwan as an example, we find that credit unions’ cost inefficiency is positively correlated with the extent of involvement in subsidy programmes. The results are robust to the control of local competition and labour quality. In addition to the stochastic frontier models from which we obtain the main results, we also propose a new distribution‐free estimation method based on quantile regressions. Results of this study point out that, when evaluating the social costs of the credit programmes, it is important to take into account the efficiency loss generated among financial intermediaries by credit subsidy programmes.     

Value versus Volume in the Catch of the Spanish South‐Atlantic Trawl Fishery

An understanding of the link between the level of inputs and resultant level of outputs is of considerable importance when trying to manage fisheries through input controls. To this end, studies of several fisheries have been undertaken to examine this relationship through the estimation of production functions and frontiers, using either catch weight or revenue as the dependent variable. The choice of the appropriate output variable to use in the analysis will depend on the objectives of the fishermen. Maximisation of catch weight is often proposed as an objective of fishermen rather than maximisation of profits. In this paper, the technical efficiency scores of vessels operating in the Spanish south‐Atlantic trawl fishery are estimated using the stochastic production frontier approach. The production frontiers are estimated with both the weight and the value of the catch as the dependent variable. The results of the analysis suggest that fishermen adopt a range of strategies but relatively few aim to maximise catch weight only. The differences in strategies may reflect heterogeneous attitudes towards risk, with more risk averse fishermen aiming to trade‐off some potential catch value for a more certain quantity of catch.     

The expansion of intensive marine aquaculture in Turkey: The next‐to‐last commodity frontier?

Aquaculture is one of the fastest growing food‐producing sectors, and its share in global seafood production is rising significantly compared with capture fisheries. This transforms seafood production practices while allowing capital to expand to new marine commodity frontiers. Building on the conceptualization of aquaculture as a new frontier for capture fisheries, the article aims to uncover how commodity frontiers expand within the intensive marine aquaculture sector and shape the transformation of seafood production by focusing on its recent growth in Turkey. It analyses this transformation based on 22 in‐depth interviews with key social actors in Turkey, as well as a review of sector and state reports and the relevant legislations of Turkey and the European Union, and argues that the three‐pronged horizontal, vertical, and taxonomic expansion already observed in industrial capture fisheries has similarly taken place in intensive marine aquaculture through the commodity widening, deepening, and marketing strategies employed by aquaculture firms.     

Estimating product‐specific and multiproduct economies of scale with data envelopment analysis

Nonparametric cost frontier estimation and subsequent analysis of the relative efficiency of firms has historically been conducted without critically examining the shape of the cost frontier. The shape of the cost frontier has been examined using additional parametric estimation methods to recover potential cost savings from multiproduct and product‐specific economies of scale. This paper presents and tests an approach to estimate multiproduct and product‐specific economies of scale using data envelopment analysis. Data for the study are simulated assuming an underlying production technology. Nonparametric estimates of efficiency, multiproduct scale, product specific scale, and scope economies are compared to those of the assumed production technology. Results show that the nonparametric approach accurately estimates multiproduct economies of scale and product‐specific economies of scale under alternative inefficiency distributional assumptions.     

The Coal Crisis in Appalachia: Agrarian Transformation,Commodity Frontiers and the Geographies of Capital

Capital's commodity frontiers strategy has at once woven together regional differences within an expanding world‐system and remade the productive and reproductive activities of humans and the rest of nature. The development of successive commodity frontiers gave way to long waves of economic expansion that have been pivotal to accelerating accumulation and transcending capital's recurrent crises. In short, commodity frontiers are constitutive of world‐ecological moments premised on booms and crises of accumulation. In this paper, I examine the coal commodity frontier in Appalachia, to illustrate the region's history as one of succeeding frontiers in and out of the region over the long twentieth century of American capitalism. I argue that the origin of Appalachia's coal frontier was decisively made through the nineteenth‐century agricultural revolution expressed outside of the region. Appalachia's full‐fledged development was an outcome of capital's under‐reproduction strategies. The crisis of the region's frontier turned on a lack of surplus from under‐reproduction strategies, competing coal basins, economic diversification and competing energy sources. I find that the commodity frontier concept not only illuminates regional political economies and ecologies of difference, but also explains the production of nature of historical capitalism.     

Measuring Excess Capital Capacity in Agricultural Production

We introduce the concept "excess capital capacity" and employ a stochastic input requirement frontier to measure excess capital capacity in agricultural production. We also propose a two-step estimation method that allows endogenous regressors in stochastic frontier models. The first step uses generalized method of moments to get consistent estimates of the frontier parameters in the presence of endogenous regressors. The second step uses maximum likelihood to measure excess capital capacity and evaluate the factors that influence it. The empirical application to Dutch cash crop farms found varying degrees of excess capital capacity. The policy implications of excess capital capacity are discussed.     

‘Amsterdam is Standing on Norway’ Part II: The Global North Atlantic in the Ecological Revolution of the Long Seventeenth Century

‘Amsterdam is standing on Norway’– this was a popular saying in the Dutch Republic of the seventeenth century. There was more than one inflection to the phrase. Amsterdam was, in the first instance, built atop a subterranean forest of Norwegian origin. But southern Norway was also a vital resource zone, subordinated to Amsterdam‐based capital. This paper follows the movement of strategic commodity frontiers within early modern Europe from the standpoint of capitalism as world‐ecology, joining in dialectical unity the production of capital and the production of nature. Our geographical focus is trained upon the emergence of the Global North Atlantic, that zone providing the strategic raw materials and food supplies indispensable to the consolidation of capitalism – timber, naval stores, metals, cereals, fish and whales. I argue for a broader geographical perspective on these movements, one capable of revealing the dialectical interplay of frontiers on all sides of the Atlantic. From its command posts in Amsterdam, Dutch capital deployed American silver in the creation of successive frontiers within Europe, transforming Scandinavian and Baltic regions. The frontier character of these transformations was decisive, premised on drawing readily exploitable supplies of land and labour power into the orbit of capital. We see in northern Europe precisely what we see in the Americas – a pattern of commodity‐centred environmental transformation, and thence relative ecological exhaustion, from which the only escape was renewed global conquest and ever‐wider cycles of combined and uneven development.     

Volatility in Cereal Prices: Intra‐ Versus Inter‐annual Volatility

Intra‐annual (within crop year) price volatility and inter‐annual (between crop years) price volatility are measured for wheat, maize, rice, barley, oats and rye. A set of explanatory variables is used in a pooled regression to explain variations in these price volatilities. With low cereal stocks, supply (yield) shocks (defined here as volatilities, as for the price volatilities) mostly influence inter‐annual volatility while other influential factors are the crude oil price and exchange rate. Cereal demand and interest rate shocks combined with low stocks affect intra‐annual volatility, while other explanatory factors include exchange rate and crude oil price shocks. The derivatives market activity appears to have no significant effect on either intra‐ or inter‐annual volatility. In contrast, large cereal stocks and a well‐functioning international cereal market reduce the effects of shocks in the explanatory variables on both intra‐ and inter‐annual volatilities.     

Characterising Vulnerability to Poverty in Rural Haiti: A Multilevel Decomposition Approach

This article characterises vulnerability to poverty in Haiti using a unique survey conducted in 2007 in rural areas. In a first step, using two‐level linear random coefficient models of both per capita consumption and per capita income, the article assesses the impact of self‐reported shocks on households' economic well‐being. In a second step, the prediction model is used to calculate various measures of vulnerability to poverty, considering various types of shocks. Empirical findings show that self‐reported (or observable) idiosyncratic shocks, in particular health‐related shocks, have larger impact on vulnerability to poverty than observable covariate shocks. These results are in line with the fact that many households reported idiosyncratic health shocks as being the worst shocks they experienced. On the other hand, unobservable idiosyncratic shocks appear to have generally more influence on households' vulnerability to poverty than unobservable covariate ones. We also show that omitting self‐reported shocks in the analysis leads to an underestimate of households' vulnerability to poverty.     

Territorialization in a closing commodity frontier: The Yasuní rainforests of West Amazonia

In Ecuador's Yasuní rainforests and the lived history of the Waorani that live there, the commodification of first rubber and then oil shaped territorialization into particularly violent form. The formative role of rubber production in the 19th century involved local despots' imposition of a regime of violence. Reacting to this violent capitalist system, individual Waorani forged new socio‐spatial territories through violence with rubber slavers and cooperation with the Taromenane, a people who continue to live in isolation. Today, an oil complex exerts control to bring the end of Yasuní's commodity frontier, even while the Waorani Nation and Taromenane hold legal rights to parts of the forests. In this article, I analyse how rubber and oil exploitation has unfolded as capitalist territorial violence, spurring Waorani and Taromenane social expressions and political mobilizations that are at times violent, but primarily not.