Are agro-clusters pro-poor? Evidence from Ethiopia

Governments and development agencies increasingly promote agro-clusters as a pathway to improving smallholder incomes and ensuring inclusive rural development through mitigating production and market risks. However, there is very limited empirical evidence to support this promise. We use a large farm household survey of about 4000 smallholder farmers in Ethiopia growing cereals like teff, maize, wheat, maltbarley and sesame to examine the relationship between agro-clusters and smallholder welfare and poverty. Using instrumental variable estimators, we establish a positive association between agro-clusters, household income and per capita income. Agro-clusters are also shown to reduce poverty and poverty gaps. Our results are robust over different agro-cluster proxies and alternative estimators, such as the augmented inverse probability weighting estimator. We also show that our findings are unlikely to be driven by omitted variable bias. Moving beyond average effects and in the interest of understanding heterogeneous effects, we use quantile regressions at different income levels. We find that agro-clusters are associated with welfare gains for all households. However, the most significant gains are observed for the wealthier households. Despite this regressive association, our findings suggest that agro-clusters may be useful in making farming more profitable with significant welfare implications.     

Does sustainable agricultural growth require a system of innovation? Evidence from Ghana and Burkina Faso

This paper tests the ‘systems of innovation’ hypothesis for a selection of crops in Ghana and Burkina Faso that have shown significant growth in production over an approximately 20-year period. The question is whether such growth can only occur if supported by a system of innovation. Using two indicators (a common understanding on objectives and priorities, and a high level of interactivity), we find little evidence for the existence of anything that might be considered a high functioning system of innovation.     

How did a network of marine protected areas impact adjacent fisheries? Evidence from Australia

Marine‐protected areas (MPAs) are an effective means of improving habitat quality and biodiversity in the world’s oceans. While the advantages of MPAs as a mechanism for conservation and biodiversity are well established, the potential improvements to fishery performance resulting from a network of MPAs are still being established. Countries around the world have committed to establishing networks of MPAs within their waters by 2020, in response to the United Nations Convention on Biological Diversity. This, coupled with the increasing global demand for seafood and heavy reliance on fishery resources as a source of economic development for many coastal communities, means that an understanding of how these networks can be expected to impact fishery performance is extremely important. We use a difference‐in‐difference modelling approach to isolate the change in the fishery performance associated with the south‐east marine reserve network in Australia. We find no evidence that the economic performance of adjacent fisheries was negatively impacted by the network. This lack of impact is likely due to a network design explicitly intended to avoid effort displacement in key fisheries, along with fishery management changes intended to remove excess fishing capacity.     

Are Russian Wheat Exporters Able to Price Discriminate? Empirical Evidence from the Last Decade

Significant changes have taken place in the world wheat market in the last decade. Russia, a former net wheat importer, has become a leading exporter with a world market share of 11.2% in 2009. This increasing importance and the discussion about the establishment of a grain‐OPEC consisting of Ukraine, Kazakhstan and Russia has raised the issue of pricing behaviour of Russian wheat exporters. Although there are several studies on the pricing behaviour of Canadian and US wheat exporters, there is none so far for Russian wheat exporters. This study provides a quantitative analysis of the pricing behaviour of Russian wheat exporters, explicitly taking account of the export tax imposed between 2007 and 2008. We employ a pricing‐to‐market (PTM) model on quarterly Russian wheat‐export data, covering the period from 2002 to 2010 and 25 export destinations. Our findings indicate that (i) Russian wheat exporters exercised PTM in only a few importing countries over the whole time period, and (ii) PTM behaviour was more pronounced in the aftermath of the export tax period (i.e. 2008–2010) than before.     

Do housing prices promote total factor productivity? Evidence from spatial panel data models in explaining the mediating role of population density

The issue of what to promote in total factor productivity (TFP) in urban areas has been widely discussed in academia and housing prices and population density are confirmed to be two of the most essential driving factors. However, research into the interaction of housing prices and population density with TFP has been neglected, with no previous studies taking spatial factors into consideration, which may bias the results. From this perspective, using spatial panel data models and employing instrumental variables to solve the endogenous problem, this study examines the impact of housing prices on TFP through the mediating effect of population density for 283 Chinese cities during the period 2000–2013, and confirms that the mediating effect accounts for 18.70 % of the total effect. The results show the positive and significant association of housing prices with TFP and the inverted U-shape of population density. The underlying logic is that housing prices change population density by attracting people with high purchasing power and discouraging those unable to afford housing, whereas increased density helps to promote productivity since the settled inhabitants always have highly developed work skills and are well educated. The influencing mechanism of housing prices on TFP through population density is analyzed, namely the spillover effect. We find that the spillover effect exists in the eastern and central regions, as well as first, second, and third tier cities, while for western regions and fifth tier cities, population mobility and increased in housing prices slows their economic development. There is no evidence of any spillover effect in fourth tier cities. A discussion and suggested policy implications are also provided.     

Are maize marketers averse to quality loss in supplies? A case study from Ghana

To ensure sustainable post‐harvest loss reduction, markets that are averse to quality loss and provide incentives for farmers to supply high quality produce are crucial. Such markets will be averse to quality loss, offering distinct prices and substantial rewards to farmers for the supply of quality produce. Farmers in sub‐Saharan Africa (SSA), where informal markets exist, have often assessed the rewards for the supply of quality produce as inadequate. Hence, this study investigates if intermediary buyers are actually indifferent to quality loss in supplies based on two scenarios—the informal market scenario and a hypothesized grade scenario. The analysis builds on survey data from marketers in two informal maize markets in Ghana. For the hypothesized grade scenario, random effect regression was used to examine the influence of marketer‐specific characteristics on premiums offered to farmers over different quality levels. The findings suggest that although informal markets seem not to adequately value loss reduction, investing in institutional infrastructures, such as grades and standards can change this. Furthermore, interaction among marketers and association participation positively influences the value marketers place on quality loss reduction. The result highlights the importance of standard grading systems and collaborating with market groups in minimizing quality loss.     

Does having more children increase the likelihood of parental smoking? Evidence from Vietnam

Evidence has shown that parental smoking can cause health problems for children. It might be expected that parents who are aware of the harmful effects of second-hand smoke will reduce their smoking, especially as they have more children. However, based on instrumental variable regressions using data from the 2006 and 2008 Vietnam Household Living Standard Surveys, we find a strongly positive and significant effect of the number of children on the probability of tobacco smoking in households in Vietnam. An additional child increases the probability of tobacco consumption in the household by approximately 15%. These findings imply low levels of awareness of the harmful effects of second-hand smoke on children’s health in Vietnam, and indicate the need for policy action to disseminate knowledge on the harmful effects of smoking.     

Are we underestimating the economic costs of wildfire smoke? An investigation using the life satisfaction approach

Understanding the economic costs imposed by wildfire smoke is important to evaluating competing fire management approaches and setting appropriate mitigation budgets. The nascent literature on wildfire smoke costs has largely examined the indirect health costs associated with individuals’ exposure to smoke. However, this ignores the direct costs of wildfire smoke, that is, the costs that smoke creates by directly affecting an individual's utility. Direct costs may arise from smoke-induced changes in visibility of scenic amenities or disruptions to ecosystem services that individuals see value in preserving. For the first time, the life satisfaction approach is applied to estimate wildfire smoke economic costs faced by individuals from direct and indirect sources. Using nationally-representative data from the US Behavioral Risk Factor Surveillance System over 2006–2010, results suggest that US adults are willing to pay $373 [95% CI: $86.8, $659.2] to avoid one day of wildfire smoke over their county of residence within a six month period. Residents of rural areas are willing to pay $130 more to avoid one smoke day than urban residents. These results are higher than extant willingness to pay estimates of indirect smoke-induced health impacts, suggestive that the true costs of wildfire smoke are larger than previously estimated.     

Is off-farm income reforming the farm? Evidence from Mexico

Does access to off-farm income complement or compete with agricultural production? This article explores the effect of off-farm income on agricultural production activities, using data from the 2003 Mexico National Rural Household Survey. We first discuss the theoretical conditions under which access to off-farm income may influence production in an agricultural household model. Instrumental-variable (IV) estimation methods are then used to test whether agricultural production activities, technologies, and input use differ between households with and without access to off-farm income. We find that off-farm income has a negative effect on agricultural output and the use of family labor on the farm, but a positive impact on the demand for purchased inputs. There is also a slight efficiency gain in households with access to off-farm income. Findings offer insights into how household production evolves as rural households increasingly engage in off-farm income activities.     

Governing the Organic Cocoa Network from Ghana: Towards Hybrid Governance Arrangements?

In this paper, we examine the processes of initiation, construction and transformation of the organic cocoa network from Ghana. We address in particular how the state responded to and engaged with civil‐society actors in the organic cocoa network and to what extent state involvement reshaped state–business–civil society relations? While most of the literature argues that globalization and liberalization processes weakened the state's position as key player in the development and management of agro‐food networks, the case of the (organic) cocoa sector in Ghana is often depicted as an exception because of the strong position the state still occupies in it. Employing a global commodity network perspective to analyse the Ghanaian organic cocoa case, this paper demonstrates that although the state is still a major player in the contemporary (organic) cocoa network, some hybrid governance arrangements, involving state, transnational and national NGO networks, and businesses, are emerging. The organic cocoa network also prompted a double process of ‘dis‐ and re‐embedding’ at the local level that helped shape and strengthen the organic cocoa network.     

Can the Internet improve agricultural production? Evidence from Viet Nam

This paper aims to contribute to the growing literature on the potential benefits of the Internet on rural livelihoods. We estimate the relationship between Internet access and agricultural production in rural Viet Nam using a panel dataset from 2008–2012. This is a time span during which Internet access increased substantially and government‐run and private online outlets providing information about agriculture started to operate. Our findings suggest that Internet access is associated with a 6.8% higher volume of total agricultural output. We find that this result is manifested through more efficient use of fertilizer. Our findings are stronger for younger households. The less developed northern provinces have benefited the most from the arrival of the Internet. The results are weaker in the case of rice, which is related to strong government involvement in rice production and prices.     

Where Does Education Pay Off in Sub-Saharan Africa? Evidence from Two Cities of the Republic of Congo

Using first-hand data from the 2009 Employment and Informal Sector Survey (EESIC) in the two largest cities of the Republic of Congo, Brazzaville and Pointe-Noire, we analyze the impact of education on labour market outcomes, and identify the segments where education pays off the most. Multivariate analyses of the risk of unemployment and sectoral choice indicate that young people face serious difficulties in the labour market: for most of them, their only choice is to remain unemployed or to join the informal sector. To measure the specific impact of schooling on earnings, we address issues related to sample selection and endogeneity of education in the earnings function. The results shed light on heterogeneity in the returns to schooling across the two main cities and institutional sectors. An important finding is that the informal sector does not systematically lag behind the formal sectors in terms of returns to education. We emphasize convex returns to education, meaning that the last years in secondary and tertiary schooling yield the highest returns, while those of primary education are generally lower. This convexity is also apparent in the informal sector, where education (albeit on another scale) again appears as an important determinant of earnings.     

Do rice prices follow a random walk? Evidence from Markov switching unit root tests for Asian markets

This study revisits the issue of mean reversion in the import rice prices of six Asian countries over the period between 1995 and 2015. Augmented Dickey Fuller tests with a conventional linear regression model support the presence of a unit root in the levels of the price data. However, when regressions allow for Markov switching in coefficients and variances to capture periodic shifts in levels and volatilities, there is strong evidence against the unit‐root null hypothesis in favor of stationarity over much of the observation period.     

How land transfer marketization influence on green total factor productivity from the approach of industrial structure? Evidence from China

Market-oriented allocation of land resources is one of the main economic reforms in China. However, the influence of land transfer marketization (LTM) on green total factor productivity (green TFP) and its mechanisms remain unknown. Based on panel data of 30 provincial administrative regions in China from 2004 to 2016, this study attempts to establish mechanism among LTM, industrial structure and green TFP, which is measured by the Slack Based Measure DEA (SBM-DEA) model containing undesirable output, and empirically estimates the impact of LTM, the rationalization and optimization of industrial structure and their interactions on green TFP further. The results show that: 1) LTM has a significant promoting effect on the improvement of green TFP in China, and the effect is also significant in the eastern, central and western regions as well, indicating that the application of land transfer policy to regulate regional economic development is widespread in China. 2) The rationalization of industrial structure has significantly promoted the development of green TFP in China, as well as at the regional levels, and the effect decreases from the western region to the central and eastern regions. The optimization of industrial structure also has a promoting effect on green TFP in China and all the regions, but the regional differences of the effect are contrary to that of the rationalization of industrial structure, with a decreasing trend from the eastern region to the central and western regions. 3) The interaction between LTM and the rationalization of industrial structure has significantly inhibited the improvement of green TFP in China, and the regional variations of the restraining effect are higher in the western region, followed by the central and eastern regions. The interaction between LTM and the optimization of industrial structure also has a negative effect on green TFP in China, and the regional variations of the effect showing the decreasing trend from the eastern region to the western and central regions. Therefore, China should continue to adhere to the market-oriented urban land transfer system reform, actively play the role of the government in the industrial upgrading and industrial transfer, and formulate a differentiated land transfer system and industrial development policies based on the economic development and industrial characteristics of various regions, so as to achieve the sustainable development of China’s economy and society.     

Are In‐House and Outsourcing Innovation Strategies Correlated? Evidence from the European Agri‐Food Sector

We analyse European agri‐food firms’ choices about innovation in‐house or through outsourcing and provide empirical evidence about the correlation between these strategies. The relationship between the innovation strategy and firm‐, industry‐ and innovation‐specific characteristics is analysed through a bivariate probit model, which uses firm data from the EFIGE Bruegel‐UniCredit dataset. Transaction cost, resource base and knowledge governance arguments are used to explain the choice of innovation strategy. Our results show that the decisions to innovate in‐house or through outsourcing are independent from each other. In addition, we find that several organisational characteristics such as communication systems, human resource practices and specialisation are likely to influence both strategies. Conversely, organisational characteristics such as the allocation of authority and the business network do not seem relevant in determining the innovation strategies of the European agri‐food sector.     

Does female human capital formation matter for the income effect of remittances? Evidence from developing countries

The existing literature has focussed extensively on the development outcomes resulting from international migrant remittances. Yet, the human capital channel promoting remittance effectiveness has received little attention. Given the multilateral policy drive to promote female literacy in recent decades, it is relevant to examine whether female human capital formation improves the effectiveness of remittances in terms of its impact on per capita income. Using a panel of 103 developing economies over the period 1970–2012, this paper attempts to answer this question empirically. The paper finds that female human capital affects the remittance-growth relationship differently according to whether it is the primary, secondary or tertiary level of human capital. Our estimates of the marginal impacts of remittances show that while higher levels of skilled human capital (secondary and tertiary enrolments) enhance the marginal impact of remittances on per capita income, low-skilled human capital (primary enrolments) fails to do so. Our conclusion stresses the need to encourage female human capital beyond the promotion of literacy rates in developing countries.     

Do Farmers and the Environment Benefit from Adopting Integrated Pest Management Practices? Evidence from Kenya

We estimate the impacts of a bundle of integrated pest management (IPM) practices on mango yield, mango net income, insecticide use, human health and the environment, using recent household survey data of mango growers in Kenya. We employ a multinomial endogenous switching treatment regression model with an ordered probit selection rule to establish counterfactual outcomes. Our results indicate that IPM‐adopting farmers have higher mango yields and mango net income, and also use lower quantities of insecticide and cause less damage to the environment and to human health. In addition, switching from one IPM to multiple IPM practices generates greater economic, environmental and human health benefits. These results suggest intensification of IPM‐adoption efforts and encouragement of the use of multiple IPM practices. These positive outcomes could be achieved through greater provision of technical support and extension services to farmers.     

Who drives the formation and adoption of the increasing versus decreasing balance policy?—Evidence from a policy process analysis

The “increasing versus decreasing balance policy (IDB)” is an important land use innovation in China and it transfers developmental rights from less productive rural land to more productive urban construction land. Since its initiation in 2000, it was soon adopted in almost all provinces in China. In the process of transferring developmental rights, what roles do different levels of governments play and why? To answer these questions, this research conducts a policy process analysis by combing the methods of process tracing and multi-level event history analysis. It finds that the policy process of IDB is a bottom-up one. The prefectural level governments are the engine of the whole process for they gain direct benefit from the transfer of developmental right. Provincial governments, on the one hand, act as a hub connecting local to central; on the other hand, fail to regulate and supervise the implementation. Central government is pushed by the force from local to enact the policy of IDB but also shows lukewarm support to it with a concern that it might deviate from the Pareto increase and damaged peasants’ wellbeing. This research explores the complicated inter-governmental relations in land policy-making process in China and also proposes policy implication on IDB’s future implementation.     

Have coffee producers benefited from the new domestic cherry market? Evidence using panel data from Rwanda

The article assesses the effects of the new domestic cherry market on coffee‐growing households in Rwanda using panel data. Findings from combined first differenced with instrumental variable specification and other estimation methods provide evidence that farmers who sell to the cherry market do not increase their expenditures compared to farmers selling to the traditional parchment market. The different time lags in terms of when farmers started selling to the new cherry market may explain the lack of statistically significant differences across the two groups. It is possible that farmers will adjust their expenditure patterns in subsequent periods after year‐over‐year market trends become more apparent to them.     

Are existing soils data meeting the needs of stakeholders in Europe? An analysis of practical use from policy to field

Soils form a major component of the natural system and their functions underpin many key ecosystem goods and services. The fundamental importance of soils in the environment means that many different organisations and stakeholders make extensive use of soils data and information in their everyday working practices. For many reasons, stakeholders are not always aware that they are reliant upon soil data and information to support their activities. Various reviews of stakeholder needs and how soil information could be improved have been carried out in recent years. However, to date, there has been little consideration of user needs from a non-expert perspective. The aim of this study was to explore the use of explicit and hidden soil information in different organisations across Europe and gain a better understanding of improvements needed in soil data and information to assist in practical use by non-expert stakeholders. An on-line questionnaire was used to investigate different uses of soils data and information with 310 responses obtained from 77 organisations across Europe. Results illustrate the widespread use of soil data and information across diverse organisations within Europe, particularly spatial products and soil functional assessments and tools. A wide range of improvements were expressed with a prevalence for finer scale resolution, trends over time, future scenarios, improved accuracy, non-technical supporting information and better capacity to use GIS. An underlying message is that existing legacy soils data need to be supplemented by new up-to-date data to meet stakeholder needs and information gaps.