Producing and Procuring Horticultural Crops with Chinese Characteristics: The Case of Northern China

The main goal of our paper is to understand what types of farmers have been able to participate in the horticultural revolution, how they interact with markets and how supply chains affect their production decisions and incomes. We also want to understand if the rise of supermarkets has changed supply chains. Our analysis uses spatially sampled data from 200 communities and 500 households in the Greater Beijing area. In contrast to fears of some researchers, we find small and poor farmers actively participate in the emergence of China’s horticulture economy. Moreover, there has been almost no penetration of modern wholesalers or retailers into rural communities.     

Liquidity Constraints and Postharvest Selling Behavior: Evidence from China's Maize Farmers

This paper addresses the impacts of liquidity constraints on household postharvest commodity selling behavior. Using data collected from China's maize farmers, we find that households with debt, in general, sell their maize much earlier than debt‐free households, thus potentially losing inter‐temporal arbitrage opportunities. Segmenting our sample into wealthy and poor households, we find that the relationship between a liquidity constraint and postharvest sales is apparent only among poor households. Using the occurrence of an illness in children or an elderly household member as an instrument for liquidity, we control for potential endogeneity associated with liquidity. We find that poor households in which there were children or elderly people with sicknesses in previous years are more likely to sell maize early than other poor households.     

Determinants of Smallholder Farmers' Marketing Channel Choice: Evidence from the Vietnamese Rice Sector

Cash crops such as specialty rice and other high‐value varieties produced for domestic and international markets are considered an increasing source of income for smallholder farmers in many Asian countries. The present study focuses on the factors affecting Vietnamese specialty rice farmers' choice of marketing channel and how their choice influences farm performance. The analysis has been conducted using multinomial logit and linear regression models on quantitative data collected from 280 specialty rice farmers in the Red River Delta, one of the main rice production regions in Vietnam. Results reveal that even though local collectors and wholesalers are still the most common recipients of farmers' goods in rural areas, reduction in transaction costs with regard to uncertainty influences farmers to choose modern marketing channels through collective action (via specialty rice farmer associations). This collective marketing channel helps farmers increase average prices received by US$0.028 per kg of paddy. Based on the results, manifold political implications are derived.     

Financial Incentives and Herding: Evidence from Two Online Experiments

Social conformity and information-based herding have been studied extensively in the social sciences, but there is little experimental evidence on how financial incentives impact the likelihood that an individual will follow the crowd. We present the results of a pair of two-stage online experiments where we use answers to and confidence about trivia questions—with and without information about the choices of others—to test the impact of financial incentives on an individual's likelihood of engaging in herd behavior (i.e., switching their answer to the most popular answer when it is revealed). We find strong evidence that individuals are more likely to herd when there are financial incentives to be correct, suggesting that individuals are less likely to rely on their own beliefs and judgments when the stakes are higher. We also exploit the unique design of our experiments to show that in the absence of information about others' choices, men report higher levels of confidence than women.     

Salience and the Disposition Effect: Evidence from the Introduction of “Cash‐Outs” in Betting Markets

The disposition effect describes the tendency of investors to sell assets that have increased in value since purchase, and hold those that have not. We analyze the introduction of betting market “Cash‐Outs,” which provide a continual update—and therefore increase the salience—of bettors' paper profits/losses on each bet. We find that the introduction of Cash‐Out increased the disposition effect in this market, as punters sold their profitable bets with greater frequency than before. We do not, however, find that the disposition effect has any impact on asset prices, either before or after this intervention.     

Triangle of Linkages among Modernising Markets,Sprayer–traders,and Mango-farming Intensification in Indonesia

The domestic mango value chain in Indonesia is transforming rapidly. This article examines the triangle of linkages among farmers’ participation in modernising markets, the emerging use of outsourced services by sprayer–traders (STs), and farm technology intensification. The key findings are as follows. First, small farmers—not just larger farmers—participate in modernising markets. However, the participation is by the upper tier of small farmers, defined in non-land asset terms. Second, although both small and larger farmers use STs, the strongest determinant of use of an ST is the interaction between having non-farm employment (thus, demand for substitution for own labour on the farm) and having a medium-sized commercial farm (thus, demand for skilled agronomic services). Farmers in mango cluster areas also tend to use STs. Finally, use of STs and participation in modernising markets spur farming intensification through the use of modern inputs.     

Global Retail Chains and Poor Farmers: Evidence from Madagascar

Global retail companies (“supermarkets”) have an increasing influence on developing countries, through foreign investments and/or through the imposition of their private standards. The impact on developing countries and poverty is often assessed as negative. In this paper we show the opposite, based on an analysis of primary data collected to measure the impact of supermarkets on small contract farmers in Madagascar, one of the poorest countries in the world. Almost 10,000 farmers in the Highlands of Madagascar produce vegetables for supermarkets in Europe. In this global supply chain, small farmers’ micro-contracts are combined with intensive farm assistance and supervision programs to fulfill complex quality requirements and phyto-sanitary standards of supermarkets. Small farmers that participate in these contracts have higher welfare, more income stability and shorter lean periods. We also find significant effects on improved technology adoption, better resource management and spillovers on the productivity of the staple crop rice. The small but emerging modern retail sector in Madagascar does not (yet) deliver these benefits as they do not (yet) request the same high standards for their supplies.     

Linkage Formation by Small Firms: The Case of A Rural Cluster in Indonesia

This paper analyses forward linkages formed by small firms in Ceper, a rural metal-casting cluster in Central Java, and examines the effects of these linkages in promoting the firms' development. Firms in the cluster have developed subcontracting linkages with assemblers in the urban modern sector, and putting-out linkages with wholesalers located in the cities. The linkages provide benefits beyond product sales: some firms are stimulated to improve technological capabilities through subcontracting linkages with assemblers; others are supported by trade credits embedded in linkages with wholesalers. In comparing these effects with external assistance, the firms rate technological help from private institutions with a business orientation more highly than that from assemblers, and support from wholesalers more highly than any other source of financial assistance. Government assistance receives a relatively low rating. There is little evidence of effects of clustering, partly because firms consider linkages with the outer economy more strategic.     

Farmers' Access to Markets: The Case of Cotton in Pakistan

Using a cross‐sectional primary dataset collected from a survey of 325 farmers in the seven highest cotton‐producing districts of Punjab Province of Pakistan, the present paper examines cotton farmers' market participation decisions, and the factors driving participation, as well as the impact of participation on net returns. Tobit and censored least absolute deviation models were used to estimate the participation of farmers in markets, and the Heckman two‐stage approach and the propensity score matching method were applied to analyze the impact of participation on net returns, taking into account potential selection bias. The empirical results revealed that households with more education, wealth, and better transport facilities are more likely to participate in the markets. As the distance to market increases, households prefer to sell at the farm gate rather than the market. The results also indicated that households that sell their goods at the market obtain higher net returns than those selling at the farm gate.     

Aspects of agricultural marketing in Lebowa

Marketing development is crucial for agricultural development in less developed areas, and should keep pace with general agricultural development. In Lebowa, markets for surplus food crops tend to be too far away from producers. Thirty‐five per cent of farmers sell livestock products, mostly privately. Livestock sales are mostly by auction. Many farmers take cattle to auctions and decide not to sell. Co‐operatives will probably be the most suitable marketing institutions for crop products channeled to South African controlled markets, while farmers should be free to market other products in any manner they wish. Lebowa farmers prefer private credit, particularly from friends and relatives, to bank credit. They also prefer to hoard money rather than bank it. Relatively little credit seems to be needed at an early development stage, but less than necessary is available. Co‐ops can in future be important in this respect. Collateral for loans presents a problem.     

Perceived levels of farming skills and problems of small‐scale commercial farmers in Ciskei

The aim of the study was to determine the potential for improved agricultural production among small‐scale commercial farmers at irrigation schemes in Ciskei, not by removing physical constraints but rather by enhancing human resource capabilities. A combination of individual and group interviews was used to examine perceptions of farmers about their farming skills and farming problems. It is apparent from this study that more emphasis needs to be placed on literacy training in the black farming community. Extension officers should also receive substantially more human relations training. There should also be more female extension workers to cater for the needs of female farmers.     

蝇头小利 规模经济——从义乌商人的“1厘利”看大卖场的“零售低价”

浙江义乌人"做小生意赚大钱"的生意经,靠‘蝇头小利获得商品销售、批发商规模经济效应’的营销策略与目前我国大卖场的"零售低价"竞争策略如出一辙。"低价"策略在零售业尤其在大卖场业态,其意义非同小可,它既有利于大卖场快速占领市场、快速消费品的销售、赢得供应低价,也有利于提高大卖场的知名度。     

Urban Shopping Patterns in Indonesia and Their Implications for Small Farmers

In developing countries, the expansion of supermarkets and other modern food retailers has raised concerns about the potential impact on traditional retailers and fruit and vegetable farmers. Will small farmers, in particular, be squeezed out of this growing, remunerative market by the quality standards imposed by supermarkets? In an attempt to answer this question, we analyse data from a stratified random sample of 1,180 urban households in Indonesia. We find that only a small share of fruits and vegetables are purchased from modern outlets, even among high-income urban households. On the basis of the relation between income and shopping patterns in our data, we project that even after 15 years of income growth, supermarkets will account for less than 40% of urban food spending. The impact of supermarket standards on small farmers may be less dramatic than has been feared.     

Firm size-specific trade effects of regional trade agreements: Estimating extensive and intensive margins of trade

We estimate the impacts of Korean firms’ participation in regional trade agreements (RTAs) on the extensive and intensive export margins by identifying exporting firms based on their firm size—small and medium-sized enterprises (SMEs) and large enterprises (LEs) at the 5 399 HS six-digit commodity level—and specifying characteristics of RTAs from 2004 to 2015. We apply the EK Tobit estimation technique to control zero trade and the OLS estimation with importer-product and time fixed effects to alleviate the endogeneity problem. We find that firm size, product type, and depth of RTA significantly matter. Specifically, we find that deeper RTAs with larger, developing, and closer members significantly enhance the export creation effects of SMEs and LEs. Regarding the firm size-specific effects, we find that SMEs are less sensitive to exploiting RTA participation but more sensitive to the import market size, bilateral and relative trade costs, and the RTA characteristics. LEs’ export creation is mainly driven by the intensive margin, while SMEs’ export creation is driven by extensive and intensive margins (slightly more by the extensive margin). For the product-specific effects, we find that Korea's major exportable products such as chemicals, basic metals, motor vehicles, and transport equipment generate significantly strong export creation effects for both LEs and SMEs through their participation in RTAs.     

Risk‐Taking Behavior: An Experimental Analysis of Individuals and Dyads

The decision to undertake risk is often made by pairs (dyads), while much of the economics literature on risk taking focuses on the individual. We report the results of controlled laboratory experiments that compare behavior between individuals and pairs. Using the 2002 procedure and a within‐subjects design, we find that pair choices are largely consistent with subjects bargaining over the outcome rather than the pairs taking a more extreme stance than the individual members. Further, gender and age but not personality seem to influence relative bargaining weight. We also find that individuals are more willing to take risks after making decisions as part of a pair than beforehand. Both the personality of one's partner and nontask social interaction influence subsequent individual risk‐taking behavior.     

Wholesalers,indirect exports,geography, and economies of scope: Evidence from firm transaction data in Japan

This study examines wholesalers’ roles in manufacturers’ exports in Japan. First, it is shown that, like in the case of manufacturing sector, a productivity sorting on the overseas activities is also present in the case of wholesalers. Namely, only the most productive wholesaler firms can engage in foreign direct investment, and the next productive wholesaler firms can participate in export activities, and the least productive wholesaler firms do domestic transactions only. Second, we investigate how the wholesalers facilitate manufacturers’ export activities in the form of indirect exports. We have found that the wholesalers through which manufacturing firms indirectly export their goods are predominantly located in Tokyo or Osaka. The probability of indirect exports is negatively correlated with distance between manufacturers and wholesalers, but there are certain threshold distances at 300–500 kilometers, over which the chance of indirect exports turns null. Another notable finding is that wholesalers’ productivities have positive correlation with the chances of indirect exports whereas manufacturers’ productivities do not matter. The number of manufacturers from which a wholesaler purchases goods, is found to have a positive correlation with the probability of indirect exports, a type of economies of scope effect.     

服务外包、农业投资及其替代效应——兼论农户是否必然是农业的投资主体

不同于以往从农户主体角度讨论诱导农业生产性投资的传统思路,文章从分工理论的视角出发,分析农业服务外包与生产性投资之间可能存在的替代关系,试图为中国小农引入现代生产要素及其投资选择提供一种新思路。基于广东阳山县的农户跟踪调查数据,选用Probit和Tobit模型的分析结果表明：农业服务外包与农户生产性投资行为之间存在显著的替代效应。具体而言,农业服务外包水平增加10%,农户进行生产性投资的概率降低3.21%,生产性投资总额降低29.24%。采用工具变量法再次验证了这一替代效应。异质性分析显示,该替代关系会随着种植规模的增大而减弱。文章的政策含义是：充分发挥农业服务外包市场的迂回投资功能,以外部投资替代农户的直接投资行为,从而将小农融入现代农业发展。为此,有必要反思和调整农村信贷政策,并适时制定面向新型农业服务经营主体发展的金融支持策略。     

Subjectivity in Professionals' Incentive Systems: Differences between Promotion‐ and Performance‐Based Assessments

We examine how managers assess performance and promotion prospects—that is, the ex ante likelihood of promotion—and the conditions under which these assessments diverge. We argue that managers apply different cognitive schemas when they make different assessments. To the extent that a signal provides different information about future versus current contributions, assessed performance and promotion prospects are likely to diverge. In two experiments, we manipulate professionals' promotion eligibility and level of consultative decision making. We find that experienced managers assess performance and promotion prospects differently, but only when professionals are promotion eligible. Specifically, more (as opposed to less) consultative decision making decreases promotion prospects while not affecting assessed performance (Experiment 1) or even improving it (Experiment 2). By contrast, more consultative decision making improves both assessments when professionals are not eligible for promotion. We shed light on the relations between subjective assessments, including that promotion is not necessarily the consequence of superior assessed performance.     

The Direct Private Benefits of Participation in a Publicly Provided Surface Irrigation Scheme in the High Rainfall Area of Nigeria

Abstract: Nigerian government's food production strategy is to make farming more attractive by improving considerably the income of farming households. Irrigation development has, of recent, been identified to be a very crucial component of that strategy. Thus, government has continued to invest in the development of a number of irrigation schemes in all the ecological zones of the country. This study therefore evaluates the extent to which government's goal of improving the income of the farmers is being achieved through such development by estimating the direct private benefits of participation in a rice irrigation scheme in the Lower Anambra Basin. Results indicate that although non-irrigators appear most productive in the use of resources by recording the highest net profit per hectare, conjuctive operators (farmers combining irrigation and rain-fed farming) net the highest annual income per household as a result of their ability to practice multiple cropping. Pure irrigators did poorest on both counts due to the high cost of production, which arises from their high use of purchased inputs. Partial budgeting results indicate that a non-irrigator should adopt irrigation as a conjuctive operator, rather than as a pure irrigator, if he hopes to improve the household annual income. A case was made for the introduction of rotational irrigation or the development of well irrigation at the tail, as a way of improving irrigated crop yields and income of irrigators in the Basin. Résumé: La stratégie du gouvernement nigérian en matière de production alimentaire consiste à rendre l'agriculture plus attrayante en améliorant sensiblement 1e revenu des ménages agricoles. Le développemcnt de 1'irrigation est considéré depuis peu comme une composante déterminante de cette stratégie. Ainsi, le gouvernement investit sans cesse dans un certain nombre de programmes d'irrigation dans toutes les zones écologiques du pays. Cettec étude évalue dans quelle mesure, par de telles initiatives, le gouvemement a atteint son objectif d'amélioration du revenu des agriculteurs en cstimant les avantages découlant directement de la participation a un programme d'irrigation rizicole dans le Bassin inférieur de l'Anambra. D'après les résultats, bien que les agriculteurs ne pratiquant pas l'irrigation semblent les plus productifs en matière d'utilisation des ressources avec le bénéfice le plus élevé par hectare, les agriculteurs combinant irrigation et agriculture pluviale possèdent le revenu annuel par habitant le plus élevé du fait de la possibilité qu'ils ont de cultures multiples. Ceux qui s'adonnent à l'irrigation pure ont obtenu les résultats les moins bons dans les deux cas en raison du coût de production élevé lié au rccours intense à des intrants achetés. Les résultats partiels du budget montrent qu'un agriculteur ne pratiquant pas l'irrigation devrait la combiner avec l'agriculture pluviale et non l'adopter intégralement, s'il veut améliorer le revenu annuel de son ménage. L'introduction de l'irrigation rotative ou le développement de l'irrigation par élévation sont préconisés pour améliorer les rendements des cultures irriguées et les revenus des agricultcurs du Bassin.     

Marketing China's milk: A case study of the sales activity of dairy farmers in greater Beijing

Small farmer participation in marketing chains in emerging commodity markets and the determinants of their marketing channel choices are the center of many recent empirical and theoretical papers in the literature. The dairy sector is emerging in China. There are many fundamental questions about how farmers make dairy marketing decisions in China at the farm gate level that are unanswered. This makes the dairy sector in China a good place to study farmers in emerging marketing chains. Based on three sets of unique data collected in the mid-2000s in Greater Beijing, the analyses show that small farmers were the major producers of milk. There is no evidence that small farmers are being excluded from emerging marketing channels. One of the differences of China's dairy sector in the mid-2000s is that its marketing chain itself had many different types of agents that procure milk — and few of them were large; most were individual entrepreneurs. The high level of the competiveness may be the reason that individual agents do not have monopoly power and why small farmers can operate in the system.