Are farmers ‘efficient but poor’? The impact of crop choices on technical efficiency and poverty in Nigeria

We test the ‘efficient-but-poor’ hypothesis by estimating the determinants of smallholders' choice over cash or food crops and whether their crop choice affects technical efficiency and poverty using the national household panel data in Nigeria. We employ the stochastic frontier analyses correcting for sample selection about farmers' crop choice. Our results indicate that smallholders are generally efficient in their resource allocations. A treatment effects model is employed to estimate farmers' crop choice in the first stage and the impact of their choices on technical efficiency and poverty outcomes in the second stage. The results show that farmers' access to free inputs, non-farm income and the use of seeds from the previous growing season are important determinants of crop choice. The adoption of cash crops by food-crop producing households will not generally reduce poverty, although it will improve technical efficiency marginally. However, if cash crops are commercialised, poverty tends to decline.     

Supply side constraints in the Israeli housing market—The impact of state owned land

House prices in Israel have risen since 2008 by as much as 98%. Much of this increase is attributed to low levels of housing supply and housing supply elasticities. In Israel land is frequently owned by the state. This results in heavy government involvement in the housing market through the control of land supply via land tenders. This paper estimates the impact of state owned land on the Israeli housing market focusing on these unusual conditions of land supply. A model for the creation of new housing units is proposed. This incorporates land tenders, enabling the estimation of housing supply dynamics with an accurate measure of public land supply. The model is tested using regional panel data which facilitates the dynamic estimation of national and local supply elasticities and regional spillovers. The paper uses novel data sources resulting in a panel of 45 spatial units over a span of 11 years (2002–2012). Due to the nonstationary nature of the data, spatial panel cointegration methods are used. The empirical results yield estimates of housing supply price elasticities and elasticities with respect to land supply. Results show that housing supply is positively impacted by governmental decisions but the impact is low. Supply elasticity with regard to government land tenders stands at around 0.05 over the short run and 0.08 over the long run. Government policy of offering land in low demand areas and fixing minimum-price tendering does not seem to affect housing supply. Policy implications point to the need for more sensitive management of the delicate balance between public and private source of land in order to mitigate the excesses of demand shocks.     

The value of education in small‐scale agriculture: Some evidence from Ogun State,Nigeria

Abstract

This paper examines the value of education in Ogun State agriculture using the production function framework. The results indicate that education contributes substantially to agricultural production in the State. The allocative effect of increased education was found to be more important than the worker effect while the input‐selection component of the allocative effect was more important than the input‐allocation component. Thus involvement in farmers’ education or a successful policy at luring educated persons into agriculture can be expected to bring about increased agricultural production in the State and, by extension, the entire country.     

The impact of protected areas on the rural households’ incomes in Ethiopia

Protected areas are cornerstones for biodiversity conservation, yet they can be controversial because of their potential impact on the livelihoods of local people due to restrictions on agricultural land use and the extractive use of natural resources. This study evaluates the impact of PAs on households’ livelihoods, as measured by total household income (THI) and livestock income (LI). We use a survey and a quasi-experimental design to gather socioeconomic and biophysical data from households living within, adjacent to and outside three national parks (NPs) in Ethiopia and employ matching methods to isolate the impact of NPs. Our findings suggest that there is no evidence that the establishment of NPs adversely affects local livelihoods. Instead, we find that households within and in adjacent areas to NPs have higher incomes compared to those living outside. Understanding the heterogeneity of the effect of NPs on local livelihoods can help in designing well-targeted policy interventions that improve conservation goals while also addressing livelihood concerns of resource-dependent local communities.     

“The tribe of pundits called economists” and economic debate in post‐independence India

Abstract

The rise of an economics profession in post‐Independence India is outlined, and something of the contribution of that profession to economic debate in India considered. The roots of the economics profession and of economic debate after 1947 are traced to the colonial era, and the institutions and the institution‐builders essential to its emergence after 1947 discussed. Five “generations” of Indian economists, active both before and after 1947, are identified. Attention is drawn to the high quality of debates on the Indian economy, the high level of theoretical discourse and the quality of political economy traditions. Particular attention is paid to the remarkable contribution of the Economic Weekly/Economic and Political Weekly, and there is treatment of the relationship between the academy, on the one hand, and the state and its representatives on the other.     

Does participation in the conservation reserve program impact the economic well‐being of farm households?

This study uses U.S. farm household survey data to examine how participation in the Conservation Reserve Program (CRP) affects farm household economic well-being. Further, the study also examines the effects of CRP participation on farm household consumption, income, and imputed savings. In contrast to previous studies that assume the relationships are homogenous across the population, quantile regression is used to investigate the association between CRP participation across the entire distribution of farm household consumption and income. Empirical findings suggest that the effect of CRP participation on household economic well-being differs across the income and consumption distribution. For households in the lower percentiles of the distribution, the CRP participation is associated with an increase in household consumption, but a decrease in farm household income and savings. In contrast, farm households at the median and higher income and consumption quantiles, participation in CRP is associated with lower levels of household consumption and income, but with higher levels of savings.     

The impact of new information technology on urban and regional structure in Europe∗

Summary

This paper discusses the revolutionary nature of information technology which affects the what, where and how of the production and delivery of goods and services. It suggests that it is virtually impossible to come to any quantitative assessment of the nature and timing of the impact of these technological changes on individual cities. What is more important is to assess the capacity of cities to respond to the challenge of new information technology. The extent to which they are able to adapt to this challenge will be deeply conditioned by their infrastructure, industrial, commercial and institutional capacity. Areas which lack the necessary telecommunications networks, innovative enterprises and public and private agencies well attuned to the new technology will lag behind in the race to take advantages of the opportunities.

Drawing on a major research project undertaken for the European Commission the paper assesses the major components of the environment necessary to participate in the information technology revolution. It reviews developments in telecommunications networks, switching and services and uptake of services within the regions of Europe. The analysis suggests that not withstanding the distance shrinking potential of telecommunications, the incremental process of network modernization coupled with the high levels of demand in major centres is likely to result in a continuing reinforcement of existing locations rather than any significant dispersal of economic activity. The paper goes on to review the impact of information technology within manufacturing and service companies; this suggests that there are few indications that new technologies will reverse present location tendencies. The paper concludes, nevertheless, that there is an urgent need to promote the widespread geographical diffusion of new information technology and in this respect urban and regional policies have an important role to play.     

The property requirements of knowledge‐based industries

Summary

An analysis of the property requirements of modern industries such as those in the electronics, pharmaceutical and chemical fields, based on detailed interviewing of over 70 companies, is presented. The factors influencing locational choice are considered, as are the specific features of notional industrial schemes. The key points which emerged from the study include: there is no single type of property suitable for all knowledge‐based companies although generally they can be accommodated in existing premises. Location is the most important factor with relatively little importance attached to the particular building scheme. Locational importance derives largely from the need to be close to a highly skilled labour pool. Close proximity to academic centres is only important to a small number of knowledge‐based companies and is not as significant as has been claimed. Flexibility is important in a variety of ways, in terms of space utilization, expansion capabilities and lease structuring.     

The history and development of agricultural and horticultural co‐operatives in East Anglia

This paper argues for a shift of emphasis from larger outlays on two major anti-poverty schemes - the rural public works (RPW) and integrated rural development (IRDP) programmes - to improvements in their design and implementation. Enhanced outlays do not matter much, as they tend to be mistargeted. More specifically, based on National Sample Survey data for 1987-88, neither RPW nor IRDP covered a large segment of the rural poor, while among their beneficiaries the shares of the (relatively) well-off were not negligible. However, the RPW was more effective in excluding the non-poor rather than attracting the poor. There has been a progressive weakening of targeting in both schemes as leakages to the non-poor rose. More of the poor are likely to benefit from RPW if the wage rate is lowered (relative to the agricultural wage), if a combination of piece and time rates is used and if wages in kind are discontinued. On the other hand, in the context of IRDP, there is a need to eliminate the interest subsidy, place greater emphasis on the reduction of transaction costs and to vest rights of land in women. Given the key role of the Village Panchayat in poverty alleviation, it is imperative that it is accountable to the village community. But above all, benefits to the poor from anti-poverty programmes depend ultimately on whether they have the collective strength to affirm their interests.     

Jevons paradox and the loss of natural habitat in the Argentinean Chaco: The impact of the indigenous communities’ land titling and the Forest Law in the province of Salta

The Chaco Salteño in Argentina is part of the Dry Chaco ecoregion, the largest neotropical dry forest in the world, and represents an important hotspot for deforestation and natural habitat loss due to agricultural expansion. The purpose of this article is: i) to assess systematically the role of agricultural expansion, intensification and demographics on the loss of natural habitat and ii) to understand how institutional factors contribute to direct the impact of agricultural intensification towards land sparing or Jevons paradox. We use multivariate statistical methods to assess the effect of important institutional changes, including the promulgation of the Forest Law in the Province of Salta and the titling of communal lands to Indigenous Peoples (IPs), on the loss of natural forests, shrublands and grasslands in the Chaco Salteño. Our results show that the approval of the Forest Law in Salta has been ineffective at slowing down the loss of natural habitat and is associated with the emergence of Jevons paradox via the increase in agricultural productivity. Moreover, this new institutional context appears to have increased the pressures on IPs land and encouraged preventive clearing on these lands. Finally, we detect the decreasing importance of livestock heads as drivers of natural habitat loss.     

Evolving national park models: The emergence of an economic imperative and its effect on the contested nature of the ‘national’ park concept in Northern Ireland

National park models have evolved in tandem with the emergence of a multifunctional countryside. Sustainable development has been added to the traditional twin aims of conservation and recreation. This is typified by recent national park designations, such as the Cairngorms National Park in Scotland. A proposed Mournes national park in Northern Ireland has evolved a stage further with a model of national park to deliver national economic goals envisaged by government. This seeks to commodify the natural landscape. This paper compares Cairngorm and Mourne stakeholders’ views on the principal features of both models: park aims, management structures and planning functions. While Cairngorm stakeholders were largely positive from the outset, the model of national park introduced is not without criticism. Conversely, Mourne stakeholders have adopted an anti-national park stance. Nevertheless, the model of national park proposed possessing a strong economic imperative, an absence of the Sandford Principle as a means to manage likely conflicts, and lacking any planning powers in its own right, may still be insufficient to bring about widespread support for a Mourne national park. Such a model is also likely to accelerate the degradation of the Mourne landscape. Competing national identities (British and Irish) provide an additional dimension to the national park debate in Northern Ireland. Deep ideological cleavages are capable of derailing the introduction of a national park irrespective of the model proposed. In Northern Ireland the national park debate is not only about reconciling environmental and economic interests but also political and ethno-national differences.     

The modification of North China quadrangles in response to rural social and economic changes in agricultural villages: 1970–2010s

In Chinese agricultural villages, housing provides multiple functions for rural households. With the transition of state policies and regional socio-economic development in China over the last 40 years, farmers have modified the layout and form of rural housing to adapt to the shifts in their livelihoods and lifestyles. Rural housing built by the remittances of migrant workers has produced negative externalities in densely populated agricultural regions, whilst in some villages, traditional housing has been demolished as part of settlement rationalization plans, with peasants relocated to apartment-style housing. These practices have been controversial and generated conflicts between peasants and local governments. Thus, rural housing has become a theoretical and practical problem in rural China that cannot be resolved with a “one-size-fits-all plan or policy”. Based on field surveys and interviews in three case villages, this paper examines how the form and layout of North China quadrangles (NCQs, or Huabei siheyuan), the four-sided folk housing built by people of the Han nationality in northern China, have been modified since the 1970s. We discuss the land use problems arising from the evolution of NCQs and options for solutions. We found that NCQs in agricultural villages have undergone several dramatic modifications: NCQs built during the collectivist agriculture era (1970s) were traditional in style but had reduced functions; NCQs built during the agriculture intensification era (1980s to mid-1990s) played an important role in agriculture production; and NCQs built in the cyclical migration era (mid-1990s to date) are typically modern and spacious. These modifications to the form of NCQs can be seen as adaptation and survival strategies of rural households in response to socio-economic transitions, their changing livelihoods, and changes in their needs over the course of their lives. Today, rural houses with varied qualities, abandoned houses, and empty plots of land coexist and intermingle together in rural settlements. To manage this chaotic situation, we suggest macro-level solutions with targeted measures to respect variations in farmers’ characteristics and interests and avoid impairing the diversity and adaptability of rural folk housing.     

The economic viability of smallholder timber production under expanding açaí palm production in the Amazon Estuary

Relatively little attention has been paid to the economic potentials and limitations of tropical timber production and management at smallholder scales, with the most relevant research focusing on community forestry efforts. As a rare tropical example of long-lasting small-scale timber production, in this study we explore the economics of smallholder vertically integrated timber use to better understand the activity in the context of its primary land use alternative in the Amazon Estuary, açaí palm fruit production. We use data from landowner and firm surveys, participatory monitoring of firms, and detailed forest and sawmill operation monitoring to devise financial returns models of smallholder timber micro firms and açaí palm fruit production. We then compare the economics of the two activities to better understand how differences may shape decisions at the small holder scale that impact current land use shifts in the region.     

The Impact of Industrial Investments on Land Use and Smallholder Farmers’ Livelihoods in Ethiopia

This study analyzes industrialization-induced agricultural land conversion (ALC) and its impact on land use change, food crop production, and the livelihood of smallholder farmers in peri-urban Gelan and Dukem, Oromia Region, Ethiopia. The study was carried out using a mixed method approach, i.e., qualitative and quantitative methods. Data were collected through various methods, e.g., household survey, expert interview, field observation, and focus group discussions method. Furthermore, a total of 223 interviews with farmers were conducted in Gelan and Dukem. Results show that large-scale industrial investments in the case study area led to substantial land use change, an appropriation of agricultural land, and an increase in the number of landless farmers, as well as farmers with small farmland holding sizes of less than one hectare. At the same time, the total crop production in the area decreased. The ‘development pace’ of the investments is often very slow. Only 28% and 37% of the licensed projects in Gelan and Dukem had entered their operational phases by the end of 2014, respectively. The study concludes that if the incomes of smallholder farmers are not enough to meet the needs of their families, they will need to create some income alternatives. Thus, considering the population growth and limited farmland, it is necessary to support various income-generating activities in order to improve farmers’ livelihoods rather than depending entirely on low productive methods such as traditional agricultural activities and non-mechanized production tools. It is worth mentioning that the results of this study will enhance the positive impacts of ALC and minimize the negative ones through land use planning and management tools. Furthermore, the main findings allow us to specify the gaps in access, utilization, and coverage due to wrong policy priority and institutional and technological variables.