Does land lease tenure insecurity cause decreased productivity and investment in the sugar industry? Evidence from Fiji

Does land lease tenure insecurity cause decreased productivity and investment in the sugar industry? To answer this question, this study examined the impact of weak formal tenure lease arrangements on tenants’ investment and the productivity of sugarcane in Ba province, Fiji. After controlling for potential endogeneity in the choice of lease tenure using instrumental variables (IV), it was shown that tenants under insecure lease tenure (expiring in 0–5 years) achieve significantly lower yields of sugarcane, by 6.5–11 tonnes per hectare, and plant smaller areas of new sugarcane, by 0.14–0.25 hectares on average, than do tenants under secure lease tenure. Insecure lease tenure also negatively affects chemical fertiliser use, although this impact is not statistically significant. An intervention to improve tenure security would likely enhance the production efficiency of and investment in the Fijian sugarcane industry.     

Does population pressure induce farm intensification? Empirical evidence from Tigrai Region,Ethiopia

The scarcity of land for crop and livestock production is critical in countries with growing populations. The idea that increasing population density leads to natural resource depletion and economic failure, as predicted by Malthus, or rather to farm intensification, as hypothesized by Boserup, motivates this research. This article examines how high population pressure in northern Ethiopia influences smallholders’ farm intensification by applying recursive estimation with a control function approach using data from 518 randomly selected farmers. Although our empirical results are more in favor of the Boserupian hypothesis, the findings also reveal that both Malthusian and Boserupian forces coexist. Consistent with Malthus theory, high population pressure is found to be associated with small farm size and herd size. Population pressure affected both technology use (breed cow, stall feeding, and modern cattle feed) and output supply (milk yield, milk income, and straw output). As predicted by Boserup's theory, the use of modern input and output supply initially increases with increasing population pressure but declines again when population densities pass a critical threshold (800 persons/km²), supporting Malthus’ hypothesis. The estimation results also revealed that both milk and straw supply responded positively to prices. Free grazing and stall feeding are found to be complementary activities. Likewise, crop farm income and off‐farm job have a nonlinear relation with population pressure, implying that both initially increase and then decrease with rising population pressure.     

Does labor migration affect rural land transfer? Evidence from China

Land transfer in rural areas and labor migration from rural areas to cities are both becoming common in China due to the increasing development of the non-agricultural sector resulting from rapid urbanization. Many rural labours who migrated to cities left their land in rural areas, and in most cases, this land was abandoned. To make full use of abandoned land in rural areas, the central government in China has formulated policies to promote rural land transfer, but rural land transfer still lags far behind labor migration in China. Drivers of rural land transfer still need to be explored. In addition, the labor migration scale shows dynamic features as the labor migration of more family members is substituted for that of individuals recent years. Thus, the phased feature of household labor migration should be taken into consideration to examine the phased influence of the labor migration scale on rural land transfer. Considering the probability threshold effect of the impact of labor migration on rural land transfer, a threshold model was used to perform the empirical analysis. Based on the threshold model and CHARLS 2015 data, this study empirically analysed the impact of the labor migration scale on rural land transfer. On the national level, labor migration will significantly promote rural land transfer if it is less than or equal to 0.125, but when it is greater than 0.125, its impact on land transfer is not significant. On the basis of the spatial differentiation of rural land transfer, four regions were divided to do the regional threshold regression analysis. On the regional level, the thresholds of labor migration scale of the central region, the east region and the west region are 0.112, 0.221 and 0.133 respectively, and there is no threshold in the north region. The results show that labor migration have a phased impact on rural land transfer in China and policies should be targeted to different labor migration phases and different regions.     

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.     

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.     

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.     

Does Intensive Tillage Enhance Productivity and Reduce Risk Exposure? Panel Data Evidence from Smallholders’ Agriculture in Ethiopia

We analyse the impact of intensity of tillage on wheat productivity and risk exposure using panel household‐plot level data from Ethiopia. In order to control for selection bias, we estimate a flexible moment‐based production function using an endogenous switching regression treatment effects model. We find that tillage has a complementary impact on productivity and risk exposure. As the intensity of tillage increases, productivity increases and farmers’ exposure to risk declines. Our results suggest that smallholder farmers use tillage as an ex‐ante risk management strategy. The main policy implication of this study is that the opportunity cost of switching to reduced tillage in wheat production seem rather high unless farmers are supported by appropriate incentive schemes.     

Is Oregon's land use planning program conserving forest and farm land? A review of the evidence

Planners have long been interested in understanding ways in which land use planning approaches play out on the ground and planning scholars have approached the task of evaluating such effects using a variety of methods. Oregon, in particular, has been the focus of numerous studies owing to its early-adopted and widely recognized statewide approach to farm and forest land protection and recent experiment with relaxation of that approach in 2004 with the passage of ballot Measure 37. In this paper we review research-based evidence regarding the forest and farm land conservation effects of Oregon land use planning. We document the evolution of methods used in evaluating state land use planning program performance, including trend analysis, indicator analysis, empirical models, and analysis of indirect effects on the economic viability of forestry and farming. We also draw on data documenting Measure 37 claims to consider the degree to which Measure 37 might have altered land use and development trends had its impacts not been tempered by a subsequent ballot measure – Measure 49. Finally, we provide a synthesis of the current state of knowledge and suggest opportunities for future research. Common to nearly all of the studies we reviewed was an acknowledgement of the difficulty in establishing causal relationships between land use planning and land use change given the many exogenous and endogenous factors involved. Despite these difficulties, we conclude that sufficient evidence does exist to suggest that Oregon's land use planning program is contributing a measurable degree of protection to forest and farm land in the state.     

Do land renting-in and its marketization increase labor input in agriculture? Evidence from rural China

There exist problems of land abandonment and low-efficiency land use when China is undergoing active rural-urban migration. Whether increasing land scale can attract more labor engaged in land use is important to increase land-use efficiency and relieve labor shortage in agriculture. This paper uses data from the 2015 China Household Finance Survey to assess the relationship between land renting-in and labor input in agriculture. The results show that land renting-in increases labor input in agriculture. With higher land rents and profit motives, more labor in lessees’ households will be engaged in agriculture. Further analysis indicates that there is no difference in labor input in agriculture between lessees transacting with acquaintances and those transacting with non-acquaintances for the increasing marketization of land rentals between acquaintances in today’s China. Our analysis implies that developing land rental markets and promoting the marketization of land rentals are important approaches to land use sustainability and relieving labor shortage in agriculture, which has great policy implications for countries with rapid rural-urban migration and abandoned arable land.     

Does fertilizer use respond to rainfall variability? Panel data evidence from Ethiopia

In this article, we use farmers' actual experiences with changes in rainfall levels and their responses to these changes to assess whether patterns of fertilizer use are responsive to changes in rainfall patterns. Using panel data from the Central Highlands of Ethiopia matched with corresponding village‐level rainfall data, the results show that the intensity of current year's fertilizer use is positively associated with higher rainfall levels experienced in the previous year. Rainfall variability, on the other hand, impacts fertilizer use decisions negatively, implying that variability raises the risks and uncertainty associated with fertilizer use. Abundant rainfall in the previous year could depict relaxed liquidity constraints and increased affordability of fertilizer, which makes rainfall availability critical in severely credit‐constrained environments. In light of similar existing literature, the major contribution of the study is that it uses panel data to explicitly examine farmers' responses to actual weather changes and variability.     

Levelling the playing field for European Union agriculture: Does the Common Agricultural Policy impact homogeneously on farm productivity and efficiency?

Originally conceived as a post-war policy vehicle for ensuring agricultural self-sufficiency, the Common Agricultural Policy (CAP) has evolved into a multifunctional instrument designed to satisfy a diverse portfolio of European Union (EU) policy objectives including nature protection. Notwithstanding, whilst the CAP has become more environmental and socially responsible, it is still expected to deliver an efficient farm production system capable of competing on world markets. The current paper combines a farm business panel dataset for 98 EU territories with a Stochastic Frontier Analysis (SFA) approach, to assess the impact of four contemporary broad categories of CAP subsidy programs on efficiency and environmental sustainability. In accordance with the literature, this study more correctly defines inputs as “facilitating”, whilst following recent methodological developments, crop-subsidies are treated as an endogenous strategic variable in the production function. Comparing between two discrete time periods, further tests are conducted to examine the hypothesis of technical efficiency convergence across european territories. The results suggest that first pillar crop subsidies and pillar two environmental programs generate a disincentive effect on productivity, whilst in general, the CAP promotes technical efficiency convergence within Europe.     

Does awareness about land tenure security (LTS) increase investments in agriculture? Evidence from rural households in Vietnam

Although previous studies have shown the importance to agricultural investments of awareness about land tenure security (LTS), to date, little quantitative evidence has been published regarding the effects of awareness about LTS. This study contributes to the current research by showing the causal effect on agricultural investments of awareness about LTS. In detail, we examine whether awareness about the increase in the duration of agricultural land-use rights improves farmers’ investments in agriculture. Under the new land law passed in November 2013 in Vietnam, the usage duration of annual cropland and aquaculture land increased significantly from 20 years to 50 years, which makes Vietnam a compelling case study for testing this hypothesis. We use panel data from the Vietnam Access to Resources Household Survey (VARHS) collected in 2010, 2012, 2014 and 2016. The balanced panel data include 1834 households. Difference-in-difference with fixed effects (DID-FE) is employed to estimate the causal impacts. We find that awareness about the increase in the duration of agricultural land-use rights increases investments in irrigation/soil conservation/water conservation and the adoption of organic fertilizer, which supports the positive impacts of awareness about LTS on sustainable investments.     

Does Local Co-operation Matter? Evidence from Industrial Clusters in South Asia and Latin America

Comparing the Korean labour productivity growth in the last two decades with the Japanese and US labour productivity growth, data confirm a process of catching up in several important manufacturing sectors. The paper investigates its determinants using a non-neoclassical model. Investments in skills and capabilities are found to be crucial in explaining this trend. Important policy implications for developing countries are then discussed. In the long run, a targeted education policy with government intervention and a strong emphasis on technical education can give high pay-offs. This conclusion holds in particular when the aim of the country is to compete in the international markets, not along the low road to competitiveness, based on squeezing wages and profit margins, but along the high road (i.e. improving productivity, wages and profits).     

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.     

Is there decentralization in North Korea? Evidence and lessons from the sloping land management program 2004–2014

In the 1990s, the Democratic People’s Republic of Korea (North Korea) suffered from severe food shortages and large-scale deforestation, which triggered a stage of rural conservation reform. Since 2004, with support from the Swiss Agency for Development and Cooperation (SDC), North Korea’s Ministry of Land and Environmental Protection (MoLEP) has implemented a Sloping Land Management Program (SLMP). The SLMP established sloping land user groups and granted these groups the right to use marginal land for agroforestry development. This devolution of land rights from state control onto local groups is a landmark in North Korea, and this decentralization initiative has now expanded to over eight counties to involve thousands of households. It has also led to the launch of a National Agroforestry Policy and Strategy. Drawing from both qualitative and quantitative data collected from 2008 to 2014, this paper documents the process and effects of the SLMP. It argues that the decentralization reform in land management has contributed to not only food security with increased food crop diversity and productivity, but also notably forest recovery through an expansion of tree plantations and agroforestry practices on degraded sloping lands. However, an insufficient power transfer in the form of a lack of timber rights granted to the local user groups has hampered the effectiveness of the SLMP. There are also institutional and geopolitical challenges that are limiting further scaling-up of land-use decentralization across the country. The policy implication calls for more international investment as well as national land-use policy reforms in order to promote and facilitate further decentralization of sloping land management and to secure greater use rights for sloping land user groups.     

What is the policy improvement of China’s land consolidation? Evidence from completed land consolidation projects in Shaanxi Province

Land consolidation plays an important role in increasing cultivated land, improving cultivated land quality and the ecological environment, and promoting the coordinated development of urban and rural areas. However, under the conditions of three decades of land consolidation being conducted and changing urban–rural human–land relationship, the areas of improvement in the land consolidation policy of China must be studied. This article analyzes the implementation and distribution characteristics of the land consolidation project completed in Shaanxi Province in 2018. Results show that land consolidation projects in Shaanxi are mainly land reclamation projects, cropland consolidation projects, and high-standard cropland consolidation projects. The increased cultivated land is mainly from land reclamation projects and cropland consolidation projects. The land consolidation projects in Aeolian Plateau Area, Loess Plateau Area, and Da Ba Mountain Area are mainly land reclamation projects. The land reclamation projects in Guan Zhong Plain Area and Qing Ling Mountain Area account for a large proportion. The spatial distribution of rural settlement consolidation projects, and rural settlement consolidation and land reclamation projects are mainly located in Guan Zhong Plain Area and distributed in the boundary area of Guan Zhong Plain Area and Loess Plateau Area. According to the characteristics of land consolidation projects and the changes of urban–rural human–land relationship, China should be prudent in or stop advancing land reclamation to increase cultivated land; cropland consolidation and high-standard cropland construction are vital ways to achieve China’s food security; and rural settlement consolidation should be carefully conducted in remote areas under the background of urbanization.     

Owned or rented—does it matter? Agricultural land use change within farm properties,case studies from Norway

In Norway and many other countries agriculture has moved toward less, but bigger farms. Total agricultural area has not been much affected mainly due to land tenancy. In this study we used aerial photographs to map land use and land cover in agricultural areas at present and in the mid-sixties. Three study sites were chosen, representing areas of differences with respect to drivers of change and possible differences in their landscape outcome. Maps from the two periods were used to produce transition matrices for the three areas as well as within each farm property. Our main finding on acreage change is that fully cultivated land increases and pastures decreases. A novel feature in our study is that we also include land use changes within single properties. In all three places a large share of the fully cultivated land in the sixties remains fully cultivated land irrespectively of whether the land is in use by its owner or is rented. When we looked at increases of fully cultivated land, the results are mixed. In the less favorable region, ownership to land versus rented land helps explain the variation in gain of fully cultivated land as well as maintained total agricultural area. However, in the case study from the grain region, whether a farm property today is in use as own land or rented, do not help explain the variation in changes within the data sample of farm properties larger than one hectare.     

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.