Adaptation to land constraints: Is Africa different?

Since the seminal works of Malthus and Boserup, scientists have long debated the impact of population growth and land constraints on the wellbeing of rural people. Today these concerns are particularly relevant to Africa, with its rapid population growth, very small farms, and chronic food insecurity. In this paper we examine adaptation to falling land-labor ratios using a comprehensive theoretical framework in which households faced with binding land constraints can respond in three ways: intensifying agricultural production, diversifying out of agriculture, and reducing fertility rates. Using cross-country data and drawing upon the existing literature, we reach three conclusions. First, population density is associated with reduced fallows and more intensive use of land but not fertilizer use or irrigation, indicating major challenges in achieving sustainable intensification or agricultural productivity growth. Second, there is little evidence of successful non-farm diversification in response to land pressures in Africa from domestic or international income sources. Third, rural Africans in land constrained countries desire smaller families, but have thus far benefited little from family planning policies. These findings underscore the need for a coordinated multi-sectoral approach to sustainably reduce poverty in the region.     

Impact of commuting by workers on household dietary diversity in rural India

Drawing insights from the literature on transformation of rural non-farm employment, pathways from agriculture to nutrition, and linkages between migration and nutritional status of household, we seek to understand differences in dietary diversity across three mutually exclusive types of rural Indian households: where all members work in rural areas, at least one member commutes to urban areas, at least one member has no fixed place of work. Our analysis is based on a nationally representative data set from India for the year 2009–10 and we use propensity score matching methods. We find that as compared to households with no commuters, households with rural–urban commuters have higher dietary diversity; whereas households with no fixed place workers have lower dietary diversity. We also find differences in dietary diversity across households which differ by their primary source of income.     

Land constraints and agricultural intensification in Ethiopia: A village-level analysis of high-potential areas

Highland Ethiopia is one of the most densely populated regions of Africa and has long been associated with both Malthusian disasters and Boserupian agricultural intensification. This paper explores the race between these two countervailing forces, with the goal of inform two important policy questions. First, how do rural Ethiopians adapt to land constraints? And second, do land constraints significantly influence welfare outcomes in rural Ethiopia? To answer these questions we use a recent household survey of high-potential areas. We first show that farm sizes are generally very small in the Ethiopian highlands and declining over time, with young rural households facing particularly severe land constraints. We then ask whether smaller and declining farm sizes are inducing agricultural intensification, and if so, how. We find strong evidence in favor of the Boserupian hypothesis that land-constrained villages typically use significantly more purchased input costs per hectare and more family labor, and achieve higher maize and teff yields and higher gross income per hectare. However, although these higher inputs raise gross revenue, we find no substantial impact of greater land constraints on net farm income per hectare once family labor costs are accounted for. Moreover, farm sizes are strongly positively correlated with net farm income, suggesting that land constraints are an important cause of rural poverty. We conclude with some broad policy implications of our results.     

The effects of trust and land administration on economic outcomes: Evidence from Vietnam

This paper examines how the interaction of social trust and institutions, such as land administration, affects household economic decisions in Viet Nam. Using a panel dataset of rural households from 2008 to 2014, we show that negative consequences of the duration of land administration on agricultural investment have been lower in rural households with higher level of trust. Higher-trust households, when facing higher barrier from land administration, tend to invest more on agricultural land compared to low-trust households where household heads are male. We also find that high-trust households enhance land property rights when facing obstacles from land administration.     

How does population density influence agricultural intensification and productivity? Evidence from Malawi

This article uses nationally representative household-level panel data from Malawi to estimate how rural population density impacts agricultural intensification and household well-being. We find that areas of higher population density are associated with smaller farm sizes, lower real agricultural wage rates, and higher real maize prices. Any input intensification that occurs seems to be going to increasing maize yields, as we find no evidence that increases in population density enable farmers to increase gross value of crop output per hectare. We also find evidence that households in more densely populated areas increasingly rely on off-farm income to earn a living, but there appears to be a rural population density threshold beyond which households can no longer increase off-farm income per capita.     

The rise of supermarkets and changing expenditure patterns of poor rural households case study in the Transkei area,South Africa

Since the late 1990s, the number of supermarkets in South Africa has been steadily growing. Due to a more effective and efficient management and procurement system, the supermarkets can benefit from economics of scale and sell food at a relative low price. In this paper, we present a case study of two villages in the Transkei area of South Africa. In these poor rural communities, the majority of households now buy their main food items from supermarkets rather than from local shops and farmers. While presenting an important step towards livelihood development and food security, these supermarkets form also a strong competitor for local agricultural sales. The supermarkets provide many food items at lower prices. With an increase in income, the households look for variety and exotism in their food products, and will most likely find this in the supermarkets, rather than the local stores. We argue therefore that development programs should focus on the local growers’ access to the supermarket procurement systems.     

Verteilungswirkungen des EEG

The Renewal Energies Act has so far been one of the cornerstones of the energy revolution. As a result of the Act the production of electricity from renewable sources has been considerably increased. As the most expensive forms of renewable energies have grown fastest, average costs have not shrunk but have risen significantly. The ongoing growth led to increasing subsidies for renewable energies and growing costs for electricity consumers in business and private households. It would be insufficient to look at absolute cost developments only, as distribution effects may be critical. As electricity consumption only slightly depends on household income, higher income leads to lower significance of electricity costs. Therefore, low income households bear a relatively higher burden of costs for renewable energies. Furthermore, wealthy households could benefit from the subsidies as they can invest in renewable energy systems.     

The associations of soil fertility and market access with household income: Evidence from rural Uganda

This study attempts to identify the major factors affecting farm and nonfarm income by using panel data of 894 rural households, interviewed in 2003 and 2005 in rural Uganda. We supplement the panel data with household-level soil fertility data and road distance data to the nearest urban center on three road types: tarmac, loose-surface, and dirt roads. The results suggest that soil fertility, measured by the soil organic matter (SOM) content, is positively associated with crop income but not with livestock and nonfarm income. We also find that the total road distance to the nearest urban center and the road quality have strong negative associations with the crop income.     

Social structure,reasonable gain,and entrepreneurship in Africa

In the context of desperate poverty, characterized by households at subsistence level that experience economic loss and social fracture, explanations for why individuals undertake entry into entrepreneurship are limited. We find that individuals rely on their social relationships to enable entrepreneurial activities that have the potential to create a reasonable income gain. In a sample of 1,049 households in rural Kenya, we test whether the disintegration of social structure attenuates entrepreneurial behavior. When coupled with factors such as income loss, gender of the household head, and access to communal resources, social structure plays a pivotal role in entrepreneurial action. We propose that the search for reasonable income gain is a key driver of entrepreneurial action at subsistence levels, thereby adding to behavioral explanations of entrepreneurship. Copyright © 2015 John Wiley & Sons, Ltd.     

Household income,women’s income share and food calorie intake in South Western Nigeria

Current debates on the nature of intra-household preferences and resource control raises the question of how intra-household redistribution of income from men and women compares with increasing total household income as strategies for increasing calorie intake among low income households. I estimate calorie-income and calorie-women’s income share elasticities for a random sample of low income households from the rural areas of south western Nigeria. I find that calorie-income elasticity is positive and small, 0.194, but four times as large as calorie-women’s income share elasticity, suggesting that calorie intake is affected more by total disposable income than by its distribution pattern. Second, I find a small and negative effect of women’s income share on per caput calorie intake, −0.04, which is a rejection of the hypothesis that increases in women’s share of income will increase calorie intake and suggests that intra-household income re-distribution from men to women may not be an effective policy for increasing food calorie intake among households in the study area.     

Non-farm income,gender, and inequality: evidence from rural Ghana and Uganda

This paper examines how the distribution of earnings in rural Ghana and Uganda differs by income type and by gender. We find that non-farm earnings contribute to rising inequality, but that lower income groups also benefit due to strong overall growth in non-farm earnings. The inequality-inducing effect is driven by self-employment income; wage income, on the other hand, reduces inequality. The tendency of non-farm income to contribute to inequality is greater among female-headed households for whom self-employment is important and non-farm opportunities more constrained. Determinants of non-farm income are estimated and appear to be strongly related to location, education, age, and distance to market. Estimates of the linkages to agriculture in Ghana are weaker than expected, showing the non-farm sector to be functioning more as an alternative activity to agriculture than as a complement.     

Milking the data: Measuring milk off-take in extensive livestock systems. Experimental evidence from Niger

Milk is an important source of cash and nutrients for many households in developing countries. Yet, our understanding of the role of dairy production in livelihoods and nutritional outcomes is hindered by the lack of decent quality household survey data. Data on milk off-take for human consumption are difficult to collect in household surveys for a number of reasons which make accurate recall challenging for the respondent (continuous production and seasonality among others), introducing possibly severe biases in the computation of full household incomes and farm sales, as well as in the estimation of the contribution of livestock (specifically dairy) production to agricultural value added and the livelihoods of rural households.This paper presents results from a validation exercise implemented in Niger, where alternative survey instruments based on recall methods were administered to randomly selected households, and compared to a 12-month system of physical monitoring and recording of milk production. The results of the exercise show that reasonably accurate estimates via recall methods are possible, and provide a clear ranking of questionnaire design options that can inform future survey operations.     

Impact of off-farm income on food security and nutrition in Nigeria

While the poverty implications of off-farm income have been analyzed in different developing countries, much less is known about the impact of off-farm income on household food security and nutrition. Here, this research gap is addressed by using farm survey data from Nigeria. Econometric analyses are employed to examine the mechanisms through which off-farm income affects household calorie and micronutrient supply, dietary quality, and child anthropometry. We find that off-farm income has a positive net effect on food security and nutrition. The prevalence of child stunting, underweight, and wasting is lower in households with off-farm income than in households without. Using a structural model, we also show that off-farm income contributes to higher food production and farm income by easing capital constraints, thus improving household welfare in multiple ways.     

Extension and Application of the Mills-Muth Urban Residential Land Use Simulation Model: Milwaukee, 1977–2020

The Mills-Muth urban residential land use simulation model is extended to include two residential income classes and a proportion of residential to urban land that varies with distance from the CBD. Land area, population, households, population density and residential property value are simulated for the central city, its suburbs and the Milwaukee urban area for the years 1977, 1980, 1985, 1990 and 2020, for two scenarios that differ primarily with respect to income growth rates and automobile commuting costs. The main finding is the powerful positive effect of even relatively small real income growth on suburbanization.     

Land consolidation,specialization and household diets: Evidence from Rwanda

Despite rapid population growth, increasing land pressure and urbanization, farmers in Sub-Saharan Africa have not intensified their production in a sustainable manner and farming systems remain predominantly subsistence-oriented. In response, developing country governments increasingly implement programs that promote crop intensification and more commercially-oriented agricultural systems. Rwanda’s Crop Intensification Program (CIP), launched in 2007, is one such example. However, despite its apparent success in raising production of several priority crops, there are legitimate concerns about the food and nutrition security implications for households that are encouraged to consolidate their land, specialize in their production, and increasingly rely on markets for their food needs. Using recent household survey data and a propensity score matching difference-in-differences method, we find that participation in land consolidation activities had ambiguous consumption effects: it positively impacted on consumption of roots and tubers, but had a negative effect on meat, fish and fruits consumption and the potential availability of vitamin B12 in participants’ diets. This calls for a review of CIP implementation practices to enhance the program’s food and nutrition security outcomes, with improvements in market functioning and market access being potential starting points.     

The impact of interfirm relationships on investment: Evidence from the Polish dairy sector

Financial constraints and credit market imperfections are a major constraint on investment, growth and poverty reduction in transition and developing countries. This paper analyses the impact on investments of financial assistance programs as part of interfirm relationships. Our empirical evidence is based on a two-stage survey methodology. Qualitative evidence on dairy companies’ assistance programs was gathered in the first stage through in-depth interviews at the level of the dairy companies. Quantitative data on 290 milk producing rural households in Poland was collected through a random survey in the second stage. The empirical analysis shows that dairy companies have played an important role in financial assistance, in particular for dairy-specific investments. In addition, they had an important indirect impact on farm activities and investments through feed supply and loan guarantee programs.     

Determinants of income diversification amongst rural households in Southern Mali

Household-level panel data from a representative sample of rural households in Southern Mali describing the different sources of household income are used to examine the determinants of income diversification. A conditional fixed effects logit model is employed in the analysis to control for household-specific effects. We find evidence that poorer households have fewer opportunities in non-cropping activities such as livestock rearing and non-farm work, and hence less diversified incomes. This appears to reflect their relative lack of capital, which makes it difficult for them to diversify away from subsistence agriculture. The results also indicate that households in remote areas are less likely to participate in the non-cropping sector than their counterparts closer to local markets, while households with educated heads are more likely to participate in the non-farm sector than those with illiterate heads. The significance of entry-constraints in explaining portfolio diversification suggests that the role of government in making assets — as well as improved infrastructure — available to poorer households is still essential in promoting income diversification.     

Income diversification,poverty traps and policy shocks in Côte d’Ivoire and Kenya

This paper presents evidence on the effects of two different sorts of policy shocks on observed income diversification patterns in rural Africa. In Côte d’Ivoire, households with poor endowments were less able to respond to attractive emerging on-farm and non-farm opportunities. Due to entry barriers to superior livelihood strategies, the benefits of exchange rate reform accrued disproportionately to households that were richer prior to devaluation. By contrast, food-for-work transfers to households in Kenya significantly reduced liquidity constraints, enabling project participants to pursue more lucrative livelihood strategies in non-farm activities and higher-return agricultural production patterns. Jointly, these two shocks underscore the importance of liquidity, market access and skill constraints to skilled non-farm income sources to dynamic poverty traps in rural Africa.     

Assessing the impact of improved agricultural technologies on household income in rural Mozambique

In many areas of Africa, rural livelihoods depend heavily on subsistence farming. Using improved agricultural technologies can increase productivity in smallholder agriculture and thus raise household income and reduce poverty. Data from a nationally representative rural household survey from 2005 is used to assess the impact of four technologies – improved maize seeds, improved granaries, tractor mechanization, and animal traction – on household income in Mozambique. To ensure the robustness of the results, three econometric approaches were used: the doubly-robust estimator, sub-classification and regression, and matching and regression. The results show that, overall, using an improved technology did not have a statistically significant impact on household income. This may be associated with a widespread drought that occurred in 2005. Despite drought, distinguishing between households based on propensity score quintiles revealed that using improved technologies, especially improved maize seeds and tractors, significantly increased the income of those households who had better market access. Thus, to allow households to benefit from the use of improved technologies, policy makers need to reduce structural impediments to market participation by ensuring adequate road infrastructure and enabling access to markets.