3 pages, via online journal, Agriculture is the backbone of most developing economies and structural transformation an important vehicle for economic development in low-income agrarian contexts. This special issue brings together a set of high quality academic studies to answer key research questions of importance to understanding agricultural development and change in developing country settings. Using the case of Vietnam, this collection provides comprehensive analytical contributions, that rely on detailed microdata, to understand crucial topics within the fields of agricultural and development economics. Together, these studies provide important insights into the mechanisms underlying structural transformation and its consequences that can contribute to the design of policies to manage the structural transformation process effectively, particularly for the most vulnerable groups in society.
16 pages, via online journal, We examine important changes in agriculture in Vietnam in the context of ongoing structural changes in the economy. We use a household-level panel dataset and a quantitative framework to document the extent and consequences of factor misallocation in agriculture during the period between 2006 and 2016. Despite rapid growth in agricultural productivity and a reallocation of factor inputs to more productive farmers, we find that misallocation across farmers remains high and increased during the period. Reallocation of factor inputs has not been strong enough to accommodate substantial changes in farm productivity over time. Our analysis also reveals important differences between the north and south regions.
14 pages, via online journal, We combine nationally representative household and labor force survey data from 1992 to 2016 to provide a detailed description of rural labor market evolution and how it relates to the structural transformation of rural Vietnam, especially within the agricultural sector. Our study adds to the emerging literature on structural transformation in low-income countries using micro-level data and helps to answer several policy-related questions. We find limited employment creation potential of agriculture, especially for youth. Rural-urban real wage convergence has gone hand-in-hand with increased diversification of the rural economy into the non-farm sector nationwide and rapid advances in educational attainment in all sectors’ and regions’ workforce. Minimum wage laws seem to have played no significant role in increasing agricultural wages. This enhanced integration also manifests in steady attenuation of the longstanding inverse farm size-yield relationship. Farming has remained securely household-based and the family farmland distribution has remained largely unchanged. Small farm sizes have not obstructed mechanization nor the uptake of labor-saving pesticides, consistent with factor substitution induced by rising real wage rates. As rural households rely more heavily on the labor market, human capital accumulation (rather than land endowments) have become the key correlate of improvements in rural household well-being.
8 pages, Does it matter whether farmers receive advice on pest management strategies from public or from private (pesticide company affiliated) extension services? We use survey data from 733 Swiss fruit growers who are currently contending with an infestation by an invasive pest, the fruit fly Drosophila Suzukii. We find that farmers who are advised by public extension services are more likely (+9–10%) to use preventive measures (e.g. nets) while farmers who are advised by private extension services are more likely (+8–9%) to use synthetic insecticides. These results are robust to the inclusion of various covariates, ways to cluster standard errors, and inverse probability weighting. We also show that our results are unlikely to be driven by omitted variable bias. Our findings have implications for the current debates on both the ongoing privatization of agricultural extension and concerns regarding negative environmental and health externalities of pesticide use.
9 pages., Online via UI electronic subscription, Researchers analyzed the effectiveness of the European Union Pledge, a self-regulation initiative of leading food companies at the European level, in restricting television advertising of food and drink products high in fat, sugar or salt to children. Results indicated that effectiveness was limited by the focus on children's program and the relatively lenient nutritional criteria agreed to by signatory companies.
14 pages., Online via UI electronic subscription., Examines the impact of gain and loss message framing and issue involvement elicitation on consumer willingness to pay for two food safety enhancing technologies: cattle vaccines against E. coli and direct-fed microbials. Results showed strong consumer preference and willingness to pay for the technologies and consumer welfare gains from their introduction.
9 pages., Online via UI electronic subscription., A choice experiment was used to evaluate the U.S. public's willingness to pay for egg attributes including housing system, color, size, and certifying agency. A significant difference in willingness to pay for hen housing systems was found using video information treatments describing hen housing systems. Participants were indifferent between hen housing systems when they viewed video treatments describing hen housing systems. However, they clearly preferred the cage-free system when they viewed no video treatments. "Results point towards potential public misunderstanding of the costs and benefits associated with the "cage-free" egg label designation."
8 pages., Online via UI electronic subscription., Researchers measured farmer demand for a new agricultural technology , a triple-layered hermetic storage bag which reduces storage loss from insect pests and neutralizes aflatoxin contamination in grain. Findings revealed a highly elastic demand that that the wholesaler could increase profit by lowering the price. Farmers who had prior awareness of the bag were willing to pay 20% more on average than those previously unaware of it. Farmers' valuation of the bags was not significantly different based on the medium (text, audio, or video) through which they received the information.
16 pages., Via online journal., This paper assesses the effect of transportation and communication networks on farmers’ choice of market channels for paddy and wheat, and subsequently on the prices they receive from these channels. It is found that smallholder farmers sell more to informal channels i.e. local traders and input dealers, and typically receive lower prices from them compared to the government-set minimum support prices (MSP). The prices realized from the sales in regulated markets are also less than the MSP despite these being claimed to be more transparent in price discovery. Econometric results show that farmers’ access to transportation and information enables them to obtain better price terms from informal as well as formal channels. The effect of information is relatively stronger, implying that farmers’ access to transportation itself is not sufficient but is effective when combined with provision of market information. Further, our proposition is that despite a positive impact of the improved market access on price realization from informal traders, farmer-trader relations are unlikely to undergo a meaningful change because of the tied transactions involving inputs, credit and outputs.
15 pages, Food security and agricultural-led industrialisation are pivotal development objectives in Ethiopia. One of the main challenges this country faces is increasing agricultural productivity by integrating smallholder farmers into a high-value agricultural commodity supply chain. This paper examines an integrated project—the Agricultural Value Chains Project in Oromia (AVCPO)—that aims to improve the livelihoods of smallholders in the Bale Zone by involving them in the production of high-quality durum wheat and linking them to the pasta industry via farmers’ cooperatives. Using primary data collected in 2014 and retrospective information, this paper investigates the AVCPO’s effects on the quantity of cereal production, the share of cereals that have been sold through cooperatives, food security, and education. In order to account for potential violations of the exclusion restriction assumption, an instrumental variable approach is applied, together with three additional estimation strategies.
The results suggest that the project has had a large and positive effect on gross and net values of cereal production per hectare, as well as on the share of production sold to pasta makers through cooperatives. These benefits accrue equally to land-rich and land-poor farmers. Furthermore, our analysis suggests that the AVCPO has improved educational outcomes and reduced food insecurity, without affecting crop rotation practices. Overall, our findings point to the effectiveness of the project. Before replicating or scaling up this intervention, however, it is necessary to understand how to better involve poorer farmers and which adjustments are needed if the areas selected have a lower potential than Bale Zone.
