Parametric Decomposition of the Malmquist Index in an Output-Oriented Distance Function
Parametric Decomposition of the Malmquist Index in an Output-Oriented Distance Function

Author: Bingxin Yu

Publisher: Intl Food Policy Res Inst

Published: 2013-02-25

Total Pages: 32

ISBN-13:

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The paper extends the methodology of parametric decomposition of the Malmquist productivity index using an output distance function. This approach addresses common methodological issues in total factor productivity estimation to produce credible and relevant results. The Malmquist index can be decomposed into several components: technical change (further broken down into technical change magnitude, input bias, and output bias), technical efficiency change, scale efficiency change, and output-mix effect. A translog output distance function is chosen to represent the production technology, and each component of the Malmquist index is computed using the estimated parameters. This parametric approach allows us to statistically test hypotheses regarding different components of the Malmquist index and the nature of production technology. The empirical application to Chinese agriculture shows that productivity grows at 2 percent per year on average from 1978 through 2010. The growth is mostly driven by technical change, which is found to be technology neutral.

Parametric decomposition of the malmquist index in an output-oriented distance function: Productivity in Chinese agriculture
Parametric decomposition of the malmquist index in an output-oriented distance function: Productivity in Chinese agriculture

Author: Bingxin Yu

Publisher: Intl Food Policy Res Inst

Published: 2013-02-25

Total Pages: 32

ISBN-13:

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The paper extends the methodology of parametric decomposition of the Malmquist productivity index using an output distance function. This approach addresses common methodological issues in total factor productivity estimation to produce credible and relevant results. The Malmquist index can be decomposed into several components: technical change (further broken down into technical change magnitude, input bias, and output bias), technical efficiency change, scale efficiency change, and output-mix effect. A translog output distance function is chosen to represent the production technology, and each component of the Malmquist index is computed using the estimated parameters. This parametric approach allows us to statistically test hypotheses regarding different components of the Malmquist index and the nature of production technology. The empirical application to Chinese agriculture shows that productivity grows at 2 percent per year on average from 1978 through 2010. The growth is mostly driven by technical change, which is found to be technology neutral.

Agricultural Mechanization in Ghana
Agricultural Mechanization in Ghana

Author: Nazaire Houssou

Publisher: Intl Food Policy Res Inst

Published: 2013-03-29

Total Pages: 24

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Since 2007, the government of Ghana has been providing subsidized agricultural machines to private enterprises established as Agricultural Mechanization Services Enterprise Centers (AMSEC) to scale up tractor-hire services to smallholder farmers. Although farmer’s demand for mechanization has increased in recent years, most of this demand concentrates on land preparation (plowing) service. Using the firm investment model and recent data, this paper quantitatively assesses whether AMSEC as a private enterprise is a viable business model attractive to private investors. Even though the intention of the government is to promote private sector-led mechanization, findings suggest that the AMSEC model is unlikely to be a profitable business model attractive to private investors even with the current level of subsidy. The low tractor utilization rate as a result of low operational scale is the most important constraint to the intertemporal profitability of tractor-hire services. Our findings further support the argument of Pingali, Bigot, and Binswanger (1987), who indicated that mechanization service centers supported through government’s heavy subsidy are not a policy option anywhere in the world, even in the current situation in Ghana. Although the tractor rental service market is a proper way of mechanizing agriculture in a smallholder-dominated agricultural economy such as Ghana, this paper concludes that the development of such a market depends crucially on a number of factors, including increased tractor use through migration across the two very different rainfall zones (north and south), increased tractor use through multiple tasks, and use of low-cost tractors. The government can play an important role in facilitating the development of a tractor service market; however, the successful development of such a market depends on the incentive and innovation of the private sector, including farmers who want to own tractors as part of their business portfolio, traders who know how to bring in affordable tractors and expand the market, and manufacturers in exporting countries who want to seek a long-term potential market opportunity in Ghana and in other west African countries.

Who Talks to Whom in African Agricultural Research Information Networks?
Who Talks to Whom in African Agricultural Research Information Networks?

Author: Klaus Droppelmann

Publisher: Intl Food Policy Res Inst

Published: 2013-04-17

Total Pages: 24

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The sector-wide approach currently dominates as the strategy for developing the agricultural sector of many African countries. Although it is recognized that agricultural research plays a vital role in ensuring success of sectorwide agricultural development strategies, there has been little or no effort to explicitly link the research strategies of the National Agricultural Research System (NARS) in African countries to the research agenda that is articulated in sectorwide agricultural development strategies. This study fills that gap by analyzing the readiness of Malawi’s NARS to respond to the research needs of the national agricultural sector development strategy, namely the Agriculture Sector Wide Approach (ASWAp) program. Results of a social network analysis demonstrate that public agricultural research departments play a central coordinating role in facilitating information sharing, with other actors remaining on the periphery. However, that analysis also shows the important role other actors play in relaying information to a wider network of stakeholders. These secondary information pathways can play a crucial role in ensuring successful implementation of the national agricultural research agenda. Policymakers and managers of public research programs are called upon to integrate other research actors into the mainstream national agricultural research information network. This is vital as other research actors are, at the global level, increasingly taking up a greater role in financing and disseminating research and research results, and in enhancing the scaling up and out of new agricultural technologies.

How Are Farmers Adapting to Climate Change in Vietnam?
How Are Farmers Adapting to Climate Change in Vietnam?

Author: Bingxin Yu

Publisher: Intl Food Policy Res Inst

Published: 2013-03-11

Total Pages: 52

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Vietnam is likely to be among the countries hardest hit by climate change, threatening its legacy as a champion in leveraging agriculture for development. This paper examines how a changing climate may affect rice production and how Vietnamese farmers are likely to adapt to various climatic conditions using an innovative yield function approach, taking into account sample selection bias and endogeneity of inputs. Model results suggest that although climate change can potentially reduce rice production, farmers will respond mainly by adjusting the production portfolio and levels of input use. However, investments in rural infrastructure and human capital will have to support farmers in the adaptation process if production levels and farm incomes are to be sustained in the future.

Factor endowments, wage growth, and changing food self-sufficiency: Evidence from country-level panel data
Factor endowments, wage growth, and changing food self-sufficiency: Evidence from country-level panel data

Author: Keijiro Otsuka

Publisher: Intl Food Policy Res Inst

Published: 2013-02-26

Total Pages: 20

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Asian countries have witnessed a sharp increase in real wage as a result of rapid economic growth and structural transformation in recent years. Using a country level panel data from 1980 to 2010, this paper examines the effects of real wage increase on Asian agriculture that traditionally used family labor intensively on small farms. The empirical evidence supports our hypothesis that an increase in real wages, along with absorptions of labor into nonagricultural sectors, has been inducing the substitution of labor by machines in agriculture. However, this process is less successful in the countries that are constrained by their small operational land sizes, resulting in lowered land productivity. We also demonstrated that dynamic changes in yield are an important determinant of food self-sufficiency ratio. The above findings imply that in the near future, Asian agriculture can face a challenge in maintaining domestic food production. Given the large size of consumer demands in the region and its increasing trend, the future path of Asian agriculture could be a significant constraint on the global food supply–demand balance.

Evaluating the Local Economywide Impacts of Irrigation Projects
Evaluating the Local Economywide Impacts of Irrigation Projects

Author: Mateusz Filipski

Publisher: Intl Food Policy Res Inst

Published: 2013-03-04

Total Pages: 28

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Despite years of development interventions, agricultural productivity in Africa south of the Sahara still trails far behind all other continents, leaving many rural populations in dire poverty. This suggests that our understanding of the impacts of agricultural development projects is still imperfect; perfecting it is likely to be a crucial step in achieving development. Projects that raise agricultural productivity, in addition to directly affecting farmers, can have an impact on local prices, wages, and rents, especially in rural areas of Africa, which tend to be less-than-perfectly integrated with outside markets. Price changes, in turn, transmit project impacts to others within the local economy. This paper presents the findings of a local economywide impact evaluation of Feed the Future irrigation projects in the Morogoro region of Tanzania, using a local economy-wide impact evaluation (LEWIE) simulation model. The findings indicate that these irrigation projects can generate important indirect impacts within the region. The structure of local markets, as well as labor and land availability, shapes project spillovers in ways that point to future directions for development assistance in the region.

Rising Wages in Bangladesh
Rising Wages in Bangladesh

Author: Xiaobo Zhang

Publisher: Intl Food Policy Res Inst

Published: 2013-03-11

Total Pages: 28

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Using data from multiple sources, we show that in Bangladesh, the increase in real wages, particularly female wages, has accelerated since the late 2000s, suggesting that the Lewis turning point (the point at which the labor market starts to shift in favor of workers) has arrived in Bangladesh. Rising wages are likely a result of a combination of more ample job opportunities in the nonfarm sector, especially in the manufacturing sector for females, and a greater amount of remittances, primarily from male workers overseas. Since human capital is the most important asset for the poor, the escalation in real wages has boosted the poor’s earnings, thereby reducing their likelihood of being poor.

Data Needs for Gender Analysis in Agriculture
Data Needs for Gender Analysis in Agriculture

Author: Cheryl Doss

Publisher: Intl Food Policy Res Inst

Published: 2013-04-05

Total Pages: 22

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To support gender analysis in agriculture, household surveys should be better designed to capture gender-specific control and ownership of agricultural resources such as male-owned, female-owned, and jointly owned assets. This paper offers guidelines on how to improve data collection efforts to ensure that women farmers are interviewed and that their voices are heard. Researchers need to clarify who should be interviewed, how to structure the interview, and how to identify which people are involved in various activities, as owners, managers, workers, and decisionmakers. It is important not simply to assume that one particular person does these activities based on social norms, but instead to ask the questions to allow for a range of answers that can demonstrate how the gender patterns in agriculture are changing. To assist in these efforts, the paper provides an overview of relevant questions to include, emphasizing that whenever questions are asked about ownership and access to resources, answers should be associated with individuals. Finally, collecting data on the institutions that are related to agricultural production and marketing allows analysis of the gender-based constraints and opportunities that they present.

Opportunities and Challenges for Community Involvement in Public Service Provision in Rural Guatemala
Opportunities and Challenges for Community Involvement in Public Service Provision in Rural Guatemala

Author: Johanna Speer

Publisher: Intl Food Policy Res Inst

Published: 2013-03-11

Total Pages: 18

ISBN-13:

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The purpose of the research summarized in this paper is to provide policy-relevant knowledge on the governance of rural services in Guatemala and thus to contribute to improving the provision of services that are essential for agricultural and rural development. Almost 10 years ago, the Guatemalan government decided to strengthen decentralization and community participation to improve the quality of public services, as well as access to these services for the poor, especially in rural areas. Based on quantitative and qualitative primary data, we examine how services are actually provided today and how community preferences and participation affect service provision in rural Guatemala. Our main finding is that the provision of formally decentralized services by local governments is incomplete. As a result, many rural communities continue to lack access to services, and some of them engage in supplying these services themselves. However, communities do not consider themselves to be more effective at service provision and would therefore prefer to be served by the government. Moreover, we find that community participation in the planning and evaluation of services has a positive impact on the responsiveness of the local government’s service provision. However, the effectiveness of community participation varies greatly among the examined cases, with several participatory governance bodies not functioning properly due to low education levels, poverty, and weak civil-society organization.