Household Entrepreneurship and Social Networks: Panel Data Evidence from Vietnam

Using a unique panel of household businesses for Vietnam, this paper sheds light on the links between households’ and entrepreneurs’ social networks and business performance. We address two related questions. The first question asks if we can find evidence of a differentiated effect of employment of members of the family versus hired workers on the business performance. A second question tackles the respective effects of various dimensions of social networks on business technical efficiency. The hypothesis is that, beyond the channel of labour productivity, entrepreneurs that are confronted with an unfavourable social environment may produce less efficiently and realise a lower output than what could be possible with the same amount of resources. We find evidence of a marginal productivity differential between family and hired labour and highlight results consistent with the presence of adverse social network effects faced by households running a business, in particular ethnic minorities. We also stress the importance of professional networks for successful entrepreneurship.     

Forced Displacement and Technology Adoption: An Empirical Analysis Based on Agricultural Households in Bosnia and Herzegovina

We use the Bosnian Living Standards Measurement Study (LSMS) survey to show that conflict-induced displacement of agricultural households dramatically affects the adoption of new technologies in agriculture. We exploit the heterogeneity in the level of violence in the pre-war location to account for selection bias. This natural experiment seems to be a source of exogenous variation in our case because violence aims at ethnic cleansing, without economic consideration. We find that the displaced are less likely than stayers to adopt fertiliser and pesticide.     

Social Network Effects on Mobile Money Adoption in Uganda

This study analyses social network effects on the adoption of mobile money among rural households in Uganda. We estimate conditional logistic regressions controlling for correlated effects and other information sources. Results show that mobile money adoption is positively influenced by the size of the social network with which information is exchanged. We further find that this effect is particularly pronounced for non-poor households. Thus, while social networks represent an important target for policy-makers aiming to promote mobile money technology, the poorest households are likely to be excluded and require more tailored policy programmes and assistance.     

Cash Transfers Enable Households to Cope with Agricultural Production and Price Shocks: Evidence from Zambia

Climate change is projected to dramatically disrupt rainfall patterns and agricultural yields in sub-Saharan Africa. These shocks to food production can mire farming households in poverty traps. This study investigates whether unconditional cash transfers can help households cope with agricultural production and price shocks. We find that cash empowers poor, rural households facing these negative shocks to employ coping strategies typically used by the non-poor and enables them to substantially increase their food consumption and overall food security. Extending relatively small cash payments unconditionally to the rural poor is a powerful policy option for fostering climate-resilient development.     

Rice Land Designation Policy in Vietnam and the Implications of Policy Reform for Food Security and Economic Welfare

With the aim of promoting national food security, the Vietnamese government enforces the designation of around 35 per cent of agricultural land strictly for paddy rice cultivation. We investigate the economic effects of adjusting this policy, using an economy-wide model of Vietnam with detailed modelling of region-specific land use, agricultural activity, poverty and food security measures. Our results show that the removal of the rice land designation policy increases real private consumption by an average of 0.35 per cent per annum over 2011–2030, while also reducing poverty, improving food security and contributing to more nutritionally balanced diets among Vietnamese households.     

Social Learning and Farm Technology in Ethiopia: Impacts by Technology,Network Type,and Poverty Status

Improved farm technologies in Ethiopia display high levels of promise and low rates of adoption. This article studies the impact of social networks on technology adoption focusing on social learning through networks based on physical proximity and those based on intentional relationships. Impacts by network type, technology, and asset poverty status are explored. Social learning is more evident for households not in persistent poverty, for more complex technologies, and within networks based on intentional relationships rather than proximity. Results indicate that technology diffusion in Ethiopia is likely to be enhanced if extension can target intentional networks, rather than spatial clusters.     

Recalling Extra Data: A Replication Study of Finding Missing Markets

We re-examine some of the strongest evidence supporting agricultural commercialisation, a highly touted yet under-researched development intervention. Our replication study re-examines Ashraf, Giné, and Karlan’s ‘Finding Missing Markets’ paper. Using the previous paper’s raw data, our research generally reproduces the original findings. We explore the evaluation’s theory of change, focusing on the result that first time export crop adopters benefit more from agricultural commercialisation than previous adopters. We also examine recall bias questions and provide sample size guidance for future researchers. Similar to the original paper, we find that the intervention mostly benefits households just entering the agricultural production value-chain.     

Junior Farmer Field Schools,Agricultural Knowledge and Spillover Effects: Quasi-Experimental Evidence from Northern Uganda

We analyse the impact of a junior farmer field school project in Northern Uganda on students’ agricultural knowledge and practices. We also test for the presence of intergenerational learning spillover within households. We use differences-in-differences estimators with ex-ante matching and find evidence that the programme had positive effects on students’ agricultural knowledge and adoption of good practices. The project also produced spillover effects in terms of improvements of household agricultural knowledge and food security. Overall, our results point to the importance of adapting the basic principles of farmer field schools to children.     

Agricultural Workers,Credit Rationing and Family Networks in Rural Mexico

Abstract

We use mixed methods and first-hand household data in Mexico to investigate credit practices by households engaged in agricultural wage employment. Quantitative analysis shows evidence of rationing in the formal sector but also suggests the existence of mitigating mechanisms. Qualitative analysis provides additional insights. First, income patterns associated with agricultural wage generate income smoothing needs that are sometimes better met by the informal sector. Second, family networks can perform key functions as gateways to the formal sector, through specific informal arrangements that inject flexibility into formal rules and procedures.     

Gender,Weather Shocks and Welfare: Evidence from Malawi

This paper explores the gender-differentiated effects of weather shocks on households’ welfare in Malawi using panel data aligned with climatic records. Results show that temperature shocks severely affect household welfare, reducing consumption, food consumption and daily caloric intake. The negative welfare effects are more severe for households where land is solely managed by women, a finding that sheds light on the gender-unequal impact of temperature shocks. Our evidence also suggests that women’s vulnerability to temperature shocks is linked to women’s land tenure security, as temperature shocks significantly impact women’s welfare only in patrilineal districts, where statistics show that investment in agricultural technologies is lower.     

The Impact of Shocks on Gender-differentiated Asset Dynamics in Bangladesh

This study investigates changes in assets owned by the household head, his spouse, or jointly in response to shocks in rural agricultural households in Bangladesh with household survey panel data. Looking at changes within households over time, we find that weather shocks adversely affect the asset holdings of household heads relatively strongly, while predicted negative shocks more strongly lead to assets of both spouses being drawn down. The results, furthermore, suggest that jointly owned assets are not easily sold in response to shocks, and that women’s asset holdings and coping strategies are shaped by their lower involvement in agriculture.     

Farm productivity and rural poverty in India

Armed with new data, we return to an old question from the pages of this journal: to what extent do India's rural poor share in agricultural growth? Combining data from 24 household sample surveys spanning 35 years with other sources, we estimate a model of the joint determination of consumption‐poverty measures, agricultural wages, and food prices. We find that higher farm productivity brought both absolute and relative gains to poor rural households. A large share of the gains was via wages and prices, though these effects took time. The benefits to the poor were not confined to those near the poverty line.     

Using Field Experiments to Elicit Risk and Ambiguity Preferences: Behavioural Factors and the Adoption of New Agricultural Technologies in Rural India

Abstract

We conduct a series of experiments in rural India in order to measure preferences related to risk, loss, and ambiguity. By combining these results with a discrete choice experiment over new and familiar rice seeds, we demonstrate how these behavioural parameters affect decisions to adopt new agricultural technologies, especially when the new technologies are risk reducing. We find that risk averse and loss averse individuals are more likely to switch to new seeds demonstrating risk reducing characteristics, while, contrary to expectations, ambiguity averse individuals are no more willing to retain their status quo than switch to cultivating the new variety.     

Mechanisms of Convergence in Domestic Counterterrorism Regulations: American Influence,Domestic Needs,and International Networks

This article seeks to determine the mechanism(s) behind the convergence of domestic counterterrorism regulations that has been noted across many Organisation for Economic Co-operation and Development (OECD) countries. Four hypotheses are developed and tested through regression analyses. These hypotheses examine (1) U.S. influence, operationalized though a unique U.S. footprint indicator; (2) national characteristics; (3) the extent to which states’ domestic structures match; and (4) international networks. We find little support that U.S. influence matters. The international influence that does exist seems to operate through networks promoting learning, especially following a rise in the general global threat level. National characteristics as a driver also find some support.     

Disease,Microdams and Natural Resources in Tigray,Ethiopia: Impacts on Productivity and Labour Supplies

We examine the effects of water microdams and ensuing waterborne diseases on household decisions in Tigray, Ethiopia, where the government implemented a water resource development programme two decades ago. We find microdams increase productivity of both fuelwood collection and crop production, but the costs of these dams to households can be significant. In villages close to dams, disease prevalence is higher and all household labour categories spend more time sick, and more time is spent by male and female adults caring for sick family members. These can cost the household anywhere in the region of 150–250 Birr per season, depending on the type of labour diversion and the productivity of labour. Males are most significant here. Removing their time from production results in 40–60 per cent higher productivity and income losses compared to diversion of female labour. Sick households also spend significantly more money on health care, especially when male and female adults are sick.     

Poverty Impacts of Changes in the International Prices of Agricultural Commodities: Recent Evidence for Argentina (An Ex-Ante Analysis)

Argentina has benefited greatly from the increase in prices of agricultural commodities. With a large share of its population with low and medium-low incomes; however, a sizable part of households is likely to be adversely affected by the accompanying rise in the price of the consumption basket. An ex-ante analysis suggests that this is the case. Changes through a less obvious channel (that is, in factor incomes) are likely to be more beneficial to middle-income households. In general, all households experience losses, with poorer households being the most affected. When accounting for transfers financed through the collection of export taxes, poorer households benefit. In the absence of compensatory measures, increases in the prices of agricultural commodities could potentially have an important impact in terms of indigence and poverty.     

Agricultural Diversity and Child Stunting in Nepal

Abstract

This article investigates empirical connections between agriculture and child nutrition in Nepal. We augment the standard approach to explaining child nutrition outcomes by including information about household level agricultural production characteristics, including indicators of agricultural diversity. Data from the 2010/2011 Nepal Living Standards Survey (NLSS) are used in a series of regression models to explain stunting outcomes and variation in height-for-age Z-scores among 1,769 children 0–59 months of age. Results highlight the relative importance of overall agricultural yields, specific crop groups, and the consumption of own-production as factors correlated with long-term nutrition among children of different age groups. We find a small positive association between the degree of commercial market-orientation of households and child HAZ, but only among children under 24 months of age.     

Sharing Norm Pressures and Community Remittances: Evidence from a Natural Disaster in the Pacific Islands

Abstract

Migrants are often subject to social pressures to remit beyond their own households, to share the benefits of migration with the wider community in their home country; these are ‘community remittances’. We hypothesise that community sharing norm pressures are stronger in locations with more extensive home community networks. We also postulate that the responsiveness of remittances to sharing pressures is subject to diminishing returns, attributable to a donor fatigue effect. Using customised survey data from three Polynesian migrant groups in metropolitan and regional Australia, we estimate double-hurdle regression models of community remittances. To identify the effects of sharing norm pressures we exploit an exogenous (cyclone) shock to home country incomes affecting one sub-group. We find strong evidence in support of the postulated responsiveness of community remittances to location-related differences in sharing norm pressures, and the presence of a donor fatigue effect. The policy implications are discussed.     

Women and Local Governance in Developing Countries: A Case Study of Ejisu,Ghana

Since 1988, Ghana has implemented comprehensive reforms to promote grassroots and citizen participation in government. This article examined women’s participation in local governance. Through an interview of 353 women in Ejisu, it was found out that the women performed almost all household chores, 62.3% of whom partly financed their households while 17% solely financed their households. About 27% of the women were members of CBOs, and 25% were assembly members. The women were restrained in local government participation by marriage, perceived superiority of men, and illiteracy. Encouragement of women and girls’ education are contingent to promoting women’s participation in local governance.     

Weather Shocks,Agricultural Production and Migration: Evidence from Tanzania

We analyse whether Tanzanian rural households engage in internal migration as a response to weather-related shocks. We hypothesise that, when exposed to such shocks and a consecutive crop yield reduction, rural households use migration as a risk management strategy. Our findings confirm that for an average household, a 1 per cent reduction in agricultural income induced by weather shock increases the probability of migration by 13 percentage points on average within the following year. However, this effect is significant only for households in the middle of wealth distribution, suggesting that the choice of migration as an adaptation strategy depends on initial endowment. What is more, the proposed mechanism applies to households whose income is highly dependent on agriculture, but is not important for diversified livelihoods.