Structural transformation and smallholder agriculture: an information‐theoretic analysis of the Nicaraguan case

In light of continued debate regarding the capacity of small‐scale agricultural producers to compete amidst globalization and/or liberalization, we examine recent trends in the distribution and use of agricultural landholdings in developing nations via refined exploration of the Nicaraguan case. With nationally‐representative, Living Standards Measurement Survey‐type data for the years 1998, 2001, and 2005, we employ Markov chain methods within an information‐theoretic framework in an attempt to advance the analysis of structural transformation in developing countries beyond the examination of trends in mean farm sizes or Gini coefficients, approaches ill‐suited to the detection of the apparent complexities of structural change. Further, while Markov chain analysis has witnessed relatively widespread application in the investigation of structural transformation in developed nations, we offer a novel methodological extension by allowing for the simultaneous exploration of structural transformation across multiple dimensions–namely, structural change in both the distribution and use of agricultural landholdings—as well as the incorporation of microlevel determinants of farm size and land use change. The results of the inquiry, above all, suggest that Nicaragua's agricultural and livestock sector is characterized by a definitive persistence of smallholders. While a moderate tendency toward bifurcation in the distribution of landholdings would appear to obscure any immediate relationship between operational landholdings and land productivity, we contend that such trends are, in fact, consistent with the often observed inverse farm size‐productivity relationship.     

MODELING INVESTMENT‐SECTOR EFFICIENCY SHOCKS: WHEN DOES DISAGGREGATION MATTER?

The most straightforward way to analyze investment‐sector productivity developments is to construct a two‐sector model with a sector‐specific productivity shock. An often used modeling shortcut accounts for such developments using a one‐sector model with shocks to the efficiency of investment in a capital accumulation equation. This shortcut is theoretically justified when some stringent conditions are satisfied. Using a two‐sector model, we consider the implications of relaxing several of the conditions that are at odds with the U.S. Input–Output Tables, including equal factor shares across sectors. The effects of productivity shocks to an investment‐producing sector of our two‐sector model differ from those of efficiency shocks to investment in a one‐sector model. Notably, expansionary productivity shocks boost consumption in every period, whereas expansionary efficiency shocks cause consumption to fall substantially for many periods.     

Manufacturer and retailer perceptions of in‐store promotions in South Africa

The objective of this article was to investigate the perceptions of retailers and manufacturers with regard to in‐store promotions A literature review of in‐store promotions was undertaken in the context of channel conflict between manufacturers and retailers In this study, the perceptions of a sample of 133 manufacturers and 144 retailers in South Africa were measured Perceptions of these two groups were obtained about the promotional activities conducted, promotion objectives, price and non‐price promotions and the effectiveness and evaluation methods for promotions The results indicate that there are differences between the two groups, with the retailers being the dominant group Also there is a lack of sound measurement of in‐store promotion Implications for manufacturers are discussed